Registered number: 05338827 Charity number: 1108278
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 - 2 |
| Trustees' Report | 3 - 9 |
| Independent Auditor's Report on the Financial Statements | 10 - 13 |
| Consolidated Statement of Financial Activities | 14 |
| Consolidated Balance Sheet | 15 |
| Charity Balance Sheet | 16 |
| Consolidated Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 - 36 |
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021
Trustees
L Williams (resigned 10 January 2021) C Mottram A Phelps PC Stone C Simmons H Moss J Bannister (resigned 5 May 2021) R Walker (appointed 18 February 2021)
Company registered number
05338827
Charity registered number
1108278
Registered office and principal address
Emmanuel Court 12-14 Mill Street Sutton Coldfield West Midlands B72 1TJ
Company secretary
Auriga Services Limited
Senior management team
The Trust has no employees and has engaged Auriga Services Limited to provide administration and management services on behalf of the Trustees.
Independent auditor
Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Bankers
Santander UK Ltd 1 Cornwall Street Birmingham B3 2DX
Investment Manager
Barclays Bank PLC 1 Snowhill Snow Hill Queensway Birmingham B4 6GN
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees present their report and the financial statements for the year ended 31 March 2021:
The challenge posed by COVID-19 is unprecedented. Throughout this year the Severn Trent Water Charitable Trust Fund (the ‘Charity’) and Auriga Services Limited (‘Auriga Services’) have consistently put the needs of our clients foremost by innovating and adapting our ways of working. Improved efficiencies implemented during COVID enabled Auriga Services to pass on valuable savings to clients at a time when other providers were increasing charges. However, it doesn’t end there as we recognise that a large number of people will be living with the mental health issues and financial hardship caused through coronavirus for years to come. With an eye on these future needs we are investing now in a modern operational infrastructure to help those who are vulnerable and most in need. This will increase Auriga Services capacity to provide grants and debt advice services and ensure that as much income as possible can be passed to those in need.
We wouldn’t be able to complete our valuable work without the ongoing support of Severn Trent Water, for which we are incredibly grateful. Severn Trent Water has confirmed its ongoing support of £3.5m for 2021/22 and we are committed to ensuring that we maximise this grant support on their behalf.
None of this would have been possible without the energy, commitment and integrity of the Auriga Services Board, the management team and Auriga Services staff. They have gone above and beyond to meet the needs of local authorities, public service organisations and utility providers to ensure those most in need received support quickly and easily. The passion for serving those in need and the honesty and integrity with which services are delivered make us very proud and on behalf of the Charity and all those benefiting we want to say a huge thank you for putting the clients’ needs foremost.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Structure and Management
In 1997 the Severn Trent Water Charitable Trust Fund was formed. The Charity is a company limited by guarantee with no share capital (company no.5338827). It is registered with the Charity Commission (no.1108278). The Charity modernised and refreshed its Articles in October 2020 pursuant with the Companies Act 2006.
In 2004 the Charity created a wholly owned trading subsidiary Auriga Services Limited to enable other water fund charities to share resources and expertise and to achieve economies of scale. Auriga Services is a limited company (company no.05093179) and operates within its Memorandum and Articles of Association dated 11 April 2004. Auriga Services now provides services to a broad range of public service and private clients.
The Charity has a Board of Trustee Directors separate from its trading subsidiary. The Charity does not directly employ any staff. Auriga Services is managed by its own Board of Directors, both Executive and Non Executive. Auriga Services operates for public benefit and it has continued to expand its services with FCA registration to provide regulated welfare and debt advice. Auriga Services provides contracted services for grant administration and company secretarial services for the Charity. This is covered in a separate Management Agreement contract which was renewed in 2021.
Board of Trustees
The Charity is governed by a Board of Trustees (‘the Board’) and currently consists of 6 Trustees. In 2020/21 one new Trustee was appointed and two Trustees resigned. The Charity is currently carrying a vacancy for 2 Trustees. All Trustees are shown on page 1. For the purposes of company law all Trustees are treated as Directors of the Charity.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
The Board has in place a governance code and Matters Reserved for the Board. Similarly Auriga Services has a Schedule of Matters Reserved for the Board. These documents set out the respective roles and responsibilities of the two organisations. The Charity updated its Articles in 2020 and in 2021 a similar review is underway for Auriga Services.
During the pandemic the Charity Board conducted virtual meetings. Four formal Board meetings took place and a small number of ancillary meetings took place to progress governance documents and to maintain contact with Auriga Services. Through the formal meetings the Charity focuses on achieving its objectives and complying with its legal and regulatory obligations. The Charity also receives reports on the progress of Auriga Services.
All non administrative decisions are made by the Trustees jointly. Administrative decisions for the operation of the Charity are delegated to Auriga Services via the Management Agreement and supporting Scheme of Delegation.
In July 2018 the Charity Board established an Audit and Risk Committee. Some specific duties of the Board are delegated to this committee as laid out in a Terms of Reference.
Trustee Induction
The induction of new Trustees is facilitated by the Chair of the Charity and Chief Executive of Auriga Services. Trustees receive a comprehensive induction pack comprising governance documents, information covering the background of the Charity and Auriga Services and the environment in which they operate, structures, method of operations and finances. Trustees are required to carefully read the Trust Deed, the donors’ directions and the latest financial statements. In addition they must familiarise themselves with the Charity Governance Code and the Charity Commission publications that give detailed guidance. Trustees are encouraged to maintain continuing professional development through workshops and seminars offered by the Charity’s legal and financial advisers.
All Trustees are required to undertake e learning for the handling of confidential information and GDPR compliance. This learning is subject to assessment, requiring an 80% pass rate.
Trustees are required to familiarise themselves with the operation of the Charity’s objects and Articles and this includes a review of the service offerings provided by Auriga Services on behalf of the Charity.
Recruitment and Appointment of Trustees
The Charity is committed to the principles of diversity in its recruitment practices. Recruitment is managed against a clear role description and applications are assessed against agreed competencies using a consistent set of questions. Roles are widely advertised and applicants encouraged from different ethnic backgrounds.
New Trustees are initially elected for a term of three years subject to approval by the Board. The Trustees receive no remuneration for their services, but do receive reimbursement of expenses incurred on Charity business.
Audit & Risk Committee
This committee is responsible for providing oversight of financial and risk management activity for the Charity and Auriga Services. This includes reviewing the Trustees’ Report and Financial Statements and the effectiveness of the external audit services. The Committee reviews the risk management frameworks and challenges evidence for the internal controls and systems. Operating on behalf of the Group the Committee comprises three Trustee Directors together with a Non Executive Director of Auriga Services. The Chief Executive and Director of Finance of Auriga Services are invited to attend all meetings. The four Committee meetings took place virtually this year.
The Trustees have considered the risks to which the Charity is exposed and taken steps to mitigate those risks.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
The most dominant risk in 2020/21 has been the impact of Coronavirus and specifically the ability of the group to serve those most vulnerable and in need. Auriga Services planning for business continuity allowed for an immediate switch to homeworking and no clients were turned away. Clients were supported by online applications and the call centre continued to be available. The agility with which this was achieved also enabled Auriga to operate high volume contracts such as the emergency fuel payments.
A key risk for the Charity is the potential loss of financial support by the key donor Severn Trent Water. The Charity maintains regular contact with Severn Trent Water to provide reassurance of excellent customer service levels and value for money and to demonstrate that the Charity continues to innovate in its service provision. In the response to COVID-19 Severn Trent Water has confirmed its continued commitment to assisting those unable to pay their household bills by making £3.5m available to customers via the Charity for 2021/22.
In providing the grant and debt advice service to those requiring help the Charity monitors the risk of becoming overwhelmed by applications from clients for support and financial assistance. Surprisingly during coronavirus this has not materialised and research by the Money Advice and Pensions Service shows that the Charity is not alone. It is widely acknowledged that debt levels have increased but as ‘debt recovery’ activity significantly slowed during COVID the pressure for people to sort out debt problems relaxed. This is likely to change as debt collectors start to increase activity. Recognising that this may have only delayed demand the Charity is developing a special COVID support fund available to clients who have struggled financially during the pandemic. It is planned to finance this from Charity Reserves.
The Committee reviews and discusses changes to existing risks and new risks in each of its meetings. Separate risk registers are maintained for the Charity and Auriga Services and these are reviewed regularly by the two Boards. Good practice is employed and risk reviews involve identifying the types of risks the two entities face, prioritising them in terms of potential impact and the likelihood of occurrence, and identifying the means of mitigating those risks. Any changes to the Charity’s controls would be agreed by the Trustees.
Charity Governance Code
The Charity has embraced the governance framework published by the Charity Commission in 2017. The Charity is committed to maintaining the highest standards of governance, including opening itself to external scrutiny with the purpose of driving a process of continuous improvement built on the Code’s principles, rationale and outcomes. The Code’s seven principles cover the organisation’s purpose, leadership, integrity, decision making, risk and control, board effectiveness, diversity and openness and transparency.
Trustees’ Indemnity Insurance
The Charity’s Articles provide, subject to the provisions of UK legislation, for the power to insure the Trustees against the costs of a successful defence to a criminal prosecution brought against them as Trustees or against personal liability incurred in respect of any act or omission which is or is alleged to be a breach of trust or breach of duty, unless the Trustee concerned knew that, or was reckless whether, the act or omission was a breach of trust or breach of duty. Appropriate liability insurance cover is in place for all the Charity’s Trustees.
OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The Charity’s objects are the relief of those persons who are in condition of need, poverty, hardship or other distress or are unable to meet the cost of charges for the supply of water and/or sewerage services provided to premises used or occupied by them by Severn Trent Water Limited as water and/or sewerage undertaker appointed pursuant to the Water Industry Act 1991 (or any statutory modification or amendment to that Act at such time or times and in such manner as the Trustees think fit.
The Trustees provide grants to assist eligible people or organisations to achieve the Charity’s objects. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
guidance on public benefit when reviewing the Charity’s aims and objectives in setting the grant making policy for the year.
ACHIEVEMENTS AND PERFORMANCE
Donations amounting to £3,500,000 were received from Severn Trent Water Ltd. In this financial year the Charity also received restricted funding for Energy Redress of £271,000. The latter has been fully paid out. A Gift Aid donation of £165,565 was received from Auriga Services.
This is the twenty third year of the Charity’s activities and it has concentrated on informing potential beneficiaries of help available in addition to providing grants where applicable.
Help for Individuals
The Charity awarded grants toward water and other costs. Grant payments have been made, as far as possible, directly to the organisation to which the amount is due. The Charity has also worked with the ‘Big Difference Scheme’ to provide grant support for those accepted onto the scheme and who are receiving help with current charges.
The aim of the Charity is to help people out of immediate crisis and financial difficulty and, wherever possible, to encourage future financial stability. During the year the Charity received 12,366 (2020: 13,768) applications and was able to provide grants to 4,316 (2020: 4,924) individuals or families amounting to £2,749,749 (2020: £2,722,437).
FINANCIAL REVIEW
The Trustees consider the financial position of the Charity and Auriga Services to be satisfactory. The total income of the group for the year was £6.8m (2020: £5.8m). £3.5m was from the donation received from Severn Trent Water Limited and £3.0m was from trading activity undertaken by Auriga Services. The Charity also obtained restricted funding for Energy Redress of £271,000 which has now been distributed. The Charity does not carry out public fundraising.
Reserves and Going Concern
The Charity maintains reserves to ensure that it is able to continue to fulfil its charitable purpose by providing for business continuity and to support future capital and revenue expenditure requirements which may not be covered by incoming resources.
Coronavirus has significantly tested the financial resilience of all charities over the past year. Well operated controls and a robust operating infrastructure means that the Charity and Auriga Services were able to respond well to all clients without resort to government funding or reducing reserves.
At the end of the period total funds held by the Charity were £1,044,081 (2020: £539,480) represented by £688,093 (2020: £454,480) of unrestricted general funds, £85,000 (2020: £85,000) of unrestricted designated funds and £270,988 (2020: £nil) of restricted funds.
The Charity received grant money of £270,988 from the Energy Saving Trust (EST) on 3 March 2021 following a successful application to the Energy Redress Scheme COVID-19 Crisis Fund. The EST award was made to enable the Charity to identify applicants for emergency fuel vouchers and issue vouchers to applicants who have been assessed as needing help. Since this award can only be used for the purposes of this project and for no other purpose whatsoever it is classified as restricted funds.
A fund has been designated by the Trustees for the provision of a “COVID relief fund” expected to be payable in the future. The Designated Fund balance is £85,000 (2020: £85,000).
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Currently, the Charity operates a Reserves Policy for the Severn Trent Water Charity Board and a separate and complementary Reserves Policy is operated by the Auriga Services Board. The Charity Reserves Policy holds reserves of £598,000 (2020: £598,000) to cover contractual and legal obligations and any unforeseen contingencies. Reserves are invested with Barclays Investment Managers and for the current financial year the market value of these investments increased by £90,636.
In order to ensure that Auriga Services and the Charity are cushioned against new and emerging risks the Board of the Charity and the Auriga Board have been working on the development of a group reserves policy for the future. The new group reserves policy will take account of the medium term strategic needs of the Charity and Auriga and will take account of known risks. Under the new reserves policy Auriga Services will adopt responsibility for the payments of the lease and dilapidation liabilities for the Head Office premises. A provision is already in place within Auriga Services reserves to cover this liability. This will enable the Charity to make a release from the current Charity reserves. Once agreed, this sum will contribute to the COVID support fund providing debt relief to the most vulnerable from the coronavirus. This will be reported in the next financial year.
In 2020/2021 Auriga Services held reserves of £1,519,686 (2020: £1,201,113) at the end of the period. These are held to cover contractual and legal obligations and key IT projects. Monies are invested with Rathbones Investment Management and, similar to the Charity, the market value of these investments increased by £121,842.
INVESTMENT POWERS
The Articles grant the Trustees the power to invest funds, employ a fund manager and arrange for investments or other property of the Charity to be held in the name of a nominee subject to the same conditions permitted by the Trustee Act 2000. The Trustees have selected Barclays as the Charity’s Investment Manager.
The Trustees have also adopted a policy to transfer any excess funds from the current account to a special interest bearing account. This is done automatically on a daily basis.
PLANS FOR FUTURE PERIODS
The Charity continues to focus on the needs of clients requiring financial support and income maximisation services. Whilst the Charity and Auriga Services have performed well during the pandemic we are not complacent.
The Charity is reassured by the continuing support from Severn Trent Water but we are equally aware of the dynamic nature of change in the water industry and we strongly believe we have a role to play, based on many years of experience, helping people with money worries. Providing grants, information and advice may sound simple enough, but we know that when it’s done right it can be life changing.
We also believe that with this experience we can play a wider role in relieving financial hardship. Our successful bid with the Energy Redress funding has proved this and we will continue to look for similar opportunities to reach more people in the coming months. In the meantime the COVID support fund will help us to reach out to the vulnerable who have suffered during coronavirus.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
In addition to serving the Charity clients Auriga Services has performed exceptionally well over the past twelve months. Management and staff are now planning a return to Head Office having embraced new and flexible ways of working. As Auriga Services focuses on future strategy the Charity recently reviewed and restated the principles on which Auriga Services was formed. The Charity strongly supports a strategy of growth and has recently agreed investments for a new IT system. It is also supportive of the appointment of two new nonexecutive Directors to the Auriga Board. We are confident Auriga Services will beat its vision of “creating 3 million healthy homes by 2030”.
In summary, the need for the services provided by the Charity and Auriga Services has never been greater and with a strong balance sheet and the help of committed and professional employees the Group is well placed to play an important role in supporting vulnerable families over the coming years.
SUBSIDIARY COMPANIES
The decision was taken to close the dormant non-trading subsidiaries in Auriga Services Limited these being Zeta Limited and Auriga Grants Limited.
FUNDS RECEIVED AS AGENT
At 31 March 2021 Auriga Services holds cash amounting to £146,982 (2020: £116,990) on behalf of Gloucestershire County Council and £21,300 (2020: £171,000) on behalf of British Gas Energy Trust. These funds have been excluded from the financial statements.
RESPONSIBILITIES OF TRUSTEES
The Trustees (who are also directors of The Severn Trent Water Charitable Trust Fund for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure for that year. In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently
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make judgements and estimates that are reasonable and prudent
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state whether applicable UK accounting standards have been followed and
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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 adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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THE SEVERM TRENT WATER CMARITABLE TRUST FUMO
IA C
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SEVERN TRENT WATER CHARITABLE TRUST FUND
Opinion
We have audited the financial statements of The Severn Trent Water Charitable Trust Fund (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SEVERN TRENT WATER CHARITABLE TRUST FUND (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our 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 Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SEVERN TRENT WATER CHARITABLE TRUST FUND (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Employment legislation and Taxation legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, designing audit procedures over income, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SEVERN TRENT WATER CHARITABLE TRUST FUND (CONTINUED)
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 Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Kerry Brown (Senior Statutory Auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG
Date: 26 November 2021
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THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021
| Note Income from: Donations and legacies Other trading activities Investments 3 Total income Expenditure on: Trading activities Charitable activities 4 Total expenditure Net income before net gains/(losses) on investments Net gains/(losses) on investments Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2021 £ 3,500,020 3,011,285 14,272 6,525,577 2,649,252 3,536,617 6,185,869 339,708 212,478 552,186 1,740,593 2,292,779 |
Restricted funds 2021 £ 270,988 - - 270,988 - - - 270,988 - 270,988 - 270,988 |
Total funds 2021 £ 3,771,008 3,011,285 14,272 6,796,565 2,649,252 3,536,617 6,185,869 610,696 212,478 823,174 1,740,593 2,563,767 |
Total funds 2020 £ 3,500,000 2,246,395 19,097 5,765,492 2,077,935 3,639,926 5,717,861 47,631 (120,412) (72,781) 1,813,374 1,740,593 |
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The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 18 to 36 form part of these financial statements.
Page 14
THE SEVERM TRENT WATER CHARIIABLE TRUST FUNO IA C4)mp4ny Limit•d by Gur•nt••l REGISTERED NUMBER.. 05338827 C4)NSQLIDATED BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Ilx•d ••ts i•n9kn1• ets Tawii as¥.lJ Iveslments 61.765 31.140 1,100.490 17.$35 53 103 OU8 012 12 1.193.395 956.6 Curf•fit •Y4•ts Deb¢( C•5h •1 b•k hATrd 13 19 1.190,310 1,703,039 979.471 638 170 2,899,349 1.618241 Crpdiim lalhty due onfr yoai 14 {1.521,9771 1&36.298J 1.370.372 Tot•1 rwl ••••t• 2.$63,767 740 59J Charlty 16 270,918 2.J2.779 Unrrticleo IwN13 16 1. 740, J93 T¢A•l lund& 2,563.707 I. T40 593 I he Tr115tees KrK)wAedge tr11 f•Apon%ililies lof CCJmptyirwJ Iht reqiiir•fiNs of the Acl Mlh rw•ct 10 cwnliry 1•ed5 rvJ prepaiatwi ol ffin•ncial Tr14lLYrtnis ts *Fyrov•d for I ru8thes tehaif by Pcst Tru¥iee Dai• The pa9ps IU J6 Icffii pan ol Ise financwl sfalements Pa9e 15
THE SEVERN TRENT WATEP CHARITABLE TRUST FUND IA Company Llmitèd by Guaranteel REGISTERED NUMBER." OS338827 CHARITY BALANCE SHEET AS AT J1 IMRCH 2021 2021 Fix•d is••ts InveNm•nls 12 506.062 415.4?6 Cwr•nt as••ts tX•.NNs Caih at btht hd 13 7,911 547,918 536 142. 733 555.12• 143.289 year 14 117.110) 119.2351 Il•t C4WT•rt SJ4,01• 124,OSI Tatsl n•t as1$ 1.044,011 &79,48CI Ch•ty lun Rr¥tiicied UM•Athct•d lurnll 16 270.980 T73.09J 39.,180 1.044.0•1 S39.480 Th• suIpklfrffiCrtj lor th• bear Oel wrth in thv ol ih• c11Y f504.601 Q020 IFI4,946I1 Trnst••b their rtspm%tsil41& for comptyiNJ w1h tt* r•qr¥S ol th• Act wth re¥1 10 crAjrtI recdI wepvntKJn ol firbanckw al•lnIS enls awir¢xe(18•id aLrfh0n lor Issue by TrUee$ and gned on behAN by. PC Sion• Trustee Oate. 2011 The rMxe.4 cjn paq•s IB lo 36 frym part of Ihtte hn8ncial stairnls Pa9ts 18
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Dividends and interests from investments Purchase of intangible assets Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 19 |
2021 £ 1,111,439 14,272 (54,806) (6,636) (47,170) 1,064,269 638,770 1,703,039 |
2020 £ 67,139 19,097 (6,464) (44,846) (32,213) 34,926 603,844 638,770 |
|---|---|---|
The notes on pages 18 to 36 form part of these financial statements
Page 17
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. General information
The Severn Trent Water Charitable Trust Fund is a Company Limited by Guarantee (registered number 05338827), registered in England and Wales. The charity registration number is 1108278. The registered office and principal place of business is 12-14 Mill Street, Sutton Coldfield, West Midlands, B72 1TJ.
The members of the charity are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Severn Trent Water Charitable Trust Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
2.2 Going concern
The Trustees consider that the Group has sufficent reserves and cash to continue operating on a going concern bais for the foreseeable future.
As stated in the Trustees' Report, the Trustees believe there are no material uncertainties that call into doubt the Group’s ability to continue as a going concern and the accounts have therefore been prepared on the basis that the Group is a going concern. In light of the current climate in relation to the COVID-19 pandemic the Trustees have reviewed the Group’s finances. In the short term cash holdings are sufficient to ensure adequate cashflow for the foreseeable future. In the medium to long term plans for, and the structure of, The Severn Trent Water Charitable Trust Fund, remain extant and will continue to be reviewed regularly.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The principal source of income comes from donations from Severn Trent Water Limited.
Investment income is accounted for when due.
Page 18
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
The costs of each activity are made up of costs that can be allocated directly and thise if an indirect nature necessary to suport them. Support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Governance costs include those costs associated with the constituitional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity.
Support costs are those costs incurred directly in support of expenditure on the objects of the company.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
2.5 Research and development
Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.
Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated Statement of Financial Activities.
Page 19
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.6 Intangible assets and amortisation
Intangible assets costing £350 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following bases:
| Software | - | 33 | % | straight line |
|---|---|---|---|---|
| Operational database | - | 33 | % | straight line |
2.7 Tangible fixed assets and depreciation
Tangible fixed assets costing £350 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on the following bases: .
Depreciation is provided on the following basis:
| Fixtures and fittings | - | 33% straight line |
|---|---|---|
| Office equipment | - | 33% straight line |
| Computer equipment | - | 33% straight line |
2.8 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.
Page 20
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.9 Financial instruments
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2.10 Pensions
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
2.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 21
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
3. Investment income
| Unrestricted funds 2021 £ Dividend income 13,408 Business reserve account interest 864 14,272 Unrestricted funds 2020 £ Dividend income 16,393 Business reserve account interest 2,704 19,097 |
Total funds 2021 £ 13,408 864 |
|---|---|
| 14,272 | |
| Total funds 2020 £ 16,393 2,704 |
|
| 19,097 |
4. Analysis of expenditure by activities
| Grant making Grant making |
Activities undertaken directly 2021 £ 775,300 Activities undertaken directly 2020 £ 793,255 |
Grant funding of activities 2021 £ 2,749,749 Grant funding of activities 2020 £ 2,827,476 |
Support costs 2021 £ 11,568 Support costs 2020 £ 19,195 |
Total funds 2021 £ 3,536,617 |
|---|---|---|---|---|
| Total funds 2020 £ 3,639,926 |
Page 22
(A Company Limited by Guarantee)
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
4. Analysis of expenditure by activities (continued)
Analysis of support costs
| Bank charges Professional fees Other expenses Governance costs 5. Grants payable Payable direct to creditors in respect of debts owed Water debt - Severn Trent Water Further assistance payments to individuals Other household needs Bankruptcy orders Debt advice and other community support grants paid |
Total funds 2021 £ 543 2,323 92 8,610 11,568 2021 £ 2,654,716 2,654,716 93,873 1,160 - 95,033 2,749,749 |
Total funds 2020 £ 497 6,544 3,154 9,000 |
|---|---|---|
| 19,195 | ||
| 2020 £ 2,627,347 |
||
| 2,627,347 91,890 3,200 105,039 |
||
| 200,129 | ||
| 2,827,476 |
Page 23
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
6. Net income/expenditure
This is stated after charging:
| Depreciation of tangible fixed assets Amortisation of intangible fixed assets Auditor's remuneration - audit Auditor's remuneration - non audit Auditor's remuneration - tax Operating lease expense |
2021 £ 27,523 10,576 11,500 2,200 850 81,603 134,252 |
2020 £ 36,330 11,871 11,250 2,100 825 70,000 |
|---|---|---|
| 132,376 |
7. Staff costs
| Wages and salaries Social security costs Other pension costs |
Group 2021 £ 2,252,117 121,619 125,728 2,499,464 |
Group 2020 £ 1,831,524 101,559 114,205 |
|---|---|---|
| 2,047,288 |
The average number of persons employed by the Charity during the year was as follows:
| Operations Administration |
Group 2021 No. 55 23 78 |
Group 2020 No. 48 19 |
|---|---|---|
| 67 |
Page 24
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. Staff costs (continued)
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | |
|---|---|---|
| 2021 | 2020 | |
| No. | No. | |
| In the band £70,001 - £80,000 | - | 1 |
| In the band £80,001 - £90,000 | 1 | 1 |
| In the band £90,001 - £100,000 | 1 | - |
| In the band £100,001 - £110,000 | - | 1 |
| In the band £110,001 - £120,000 | 1 | - |
The total emoluments paid to key management personnel during 2021 including pension contributions, management fees and ex-gratia payments was £368,632 (2020 - £379,143).
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the year ended 31 March 2021, travel expenses totalling £ 57 were reimbursed or paid directly to 2 Trustees (2020 - £1,885 to 5 Trustees) .
Page 25
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. Taxation
Corporation tax
Current tax on net income/(expenditure) for the year
Taxation on net income/(expenditure)
The tax assessed for the year is higher than ( 2020 - lower than ) the standard rate of corporation tax in the UK of 19% ( 2020 - 19% ). The differences are explained below:
| Net income/(expenditure) before tax Net income/(expenditure) multiplied by the standard rate of corporation tax in the UK of 19_(2020 - 19%)._ Effects of: Expenses not deductible for tax purposes, other than goodwill amortisation and impairment (Deficit) / surplus not chargable to taxation Deferred tax not recognised Other permanent differences Income not taxable Adjust opening deferred tax to average rate Total tax charge for the year |
2021 £ 823,174 156,403 (1,122) (95,875) (36,763) - (22,643) - - |
2020 £ (72,781) (13,828) 11,306 35,935 (13,449) (21,672) (1,611) 3,319 - |
|---|---|---|
There are no factors considered likely to affect future tax charges.
Page 26
(A Company Limited by Guarantee)
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
10. Intangible assets
Group
| Cost At 1 April 2020 Additions At 31 March 2021 Amortisation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Software £ 53,424 - 53,424 35,889 10,576 46,465 6,959 17,535 |
Operational database £ - 54,806 54,806 - - - 54,806 - |
Total £ 53,424 54,806 |
|---|---|---|---|
| 108,230 | |||
| 35,889 10,576 |
|||
| 46,465 | |||
| 61,765 | |||
| 17,535 |
Page 27
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
11. Tangible fixed assets
Group and Charity
| Cost or valuation At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year On disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Fixtures and fittings £ 144,871 - - 144,871 124,695 9,662 - 134,357 10,514 20,176 |
Office equipment £ 24,354 - (241) 24,113 22,982 783 (241) 23,524 589 1,372 |
Computer equipment £ 154,430 6,636 (12,279) 148,787 122,875 17,078 (11,203) 128,750 20,037 31,555 |
Total £ 323,655 6,636 (12,520) 317,771 270,552 27,523 (11,444) 286,631 31,140 53,103 |
|---|---|---|---|---|
Page 28
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
12. Fixed asset investments
| Group Cost or valuation At 1 April 2020 Revaluations At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 Charity Cost or valuation At 1 April 2020 Revaluations At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Investments in subsidiary companies £ 2 - 2 2 2 |
Listed investments £ 415,424 90,636 506,060 506,060 415,424 |
Listed investments £ 888,012 212,478 |
|---|---|---|---|
| 1,100,490 | |||
| 1,100,490 | |||
| 888,012 | |||
| Total £ 415,426 90,636 |
|||
| 506,062 | |||
| 506,062 | |||
| 415,426 |
Page 29
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
Quoted investments are represented by:
| UK Fixed interest securities UK Equity Shares Overseas Equity Shares Alternatives UK cash deposits |
2021 £ 56,282 628,871 266,081 113,176 36,080 1,100,490 |
2020 £ 54,805 519,025 194,198 104,913 15,071 |
|---|---|---|
| 888,012 |
13. Debtors
| Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income |
Group 2021 £ 509,528 - 587,452 99,330 1,196,310 |
Group 2020 £ 499,887 - 405,813 73,771 979,471 |
Charity 2021 £ - 7,500 411 - 7,911 |
Charity 2020 £ - - 536 - |
|---|---|---|---|---|
| 536 |
14. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
Group 2021 £ 145,839 151,071 790 1,231,277 1,528,977 |
Group 2020 £ 82,516 122,531 854 630,397 836,298 |
Charity 2021 £ 5,696 - - 12,114 17,810 |
Charity 2020 £ 6,426 - - 12,809 |
|---|---|---|---|---|
| 19,235 |
Page 30
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
Creditors: Amounts falling due within one year (continued)
| Deferred income at 1 April 2020 Resources deferred during the year Amounts released from previous periods |
2021 £ 17,523 21,685 (17,523) 21,685 |
2020 £ 16,239 17,613 (16,329) |
|---|---|---|
| 17,523 |
Deferred income relates to service contracts within Auriga to be delivered in the following year.
15. Financial instruments
| Financial assets Financial assets measured at fair value through income and expenditure Financial assets measured at amortised cost Financial liabilities Financial liabilities measured at amortised cost |
Group 2021 £ 1,100,490 2,821,525 3,922,015 Group 2021 £ 1,356,221 |
Group 2020 £ 888,012 1,544,470 2,432,482 Group 2020 £ 696,244 |
Charity 2021 £ - 548,329 548,329 Charity 2021 £ 17,810 |
Charity 2020 £ - 143,289 |
|---|---|---|---|---|
| 143,289 | ||||
| Charity 2020 £ 19,235 |
Financial assets measured at fair value through income and expenditure comprise investments in UK listed securities.
Financial assets measured at amortised cost comprise cash at bank, trade debtors, other debtors and accrued income.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.
Page 31
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
16. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 April 2020 £ 85,000 1,655,593 - 1,740,593 Balance at 1 April 2019 £ 275,039 1,538,335 1,813,374 |
Income £ - 6,525,577 270,988 6,796,565 Income £ - 5,765,492 5,765,492 |
Expenditure £ - (6,185,865) - (6,185,865) Expenditure £ (190,039) (5,527,822) (5,717,861) |
Gains/ (Losses) £ - 212,474 - 212,474 Gains/ (Losses) £ - (120,412) (120,412) |
Balance at 31 March 2021 £ 85,000 2,207,779 270,988 |
|---|---|---|---|---|---|
| 2,563,767 | |||||
| Balance at 31 March 2020 £ 85,000 1,655,593 |
|||||
| Summary of funds - prior year | |||||
| Designated funds General funds |
|||||
| 1,740,593 |
Designated Funds
Designated funds represents amounts designated by the Trustees to meet the future costs of the provision of Debt Advice and other Community Support Projects.
Restricted Funds
Restricted funds relate to a grant received from The Energy Savings Trust, in relation to the energy redress scheme covid-19 crisis fund.
Page 32
(A Company Limited by Guarantee)
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
17. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 31,140 Intangible fixed assets 61,765 Fixed asset investments 1,100,490 Current assets 2,628,361 Creditors due within one year (1,528,977) Total 2,292,779 |
Restricted funds 2021 £ - - - 270,988 - 270,988 |
Total funds 2021 £ 31,140 61,765 1,100,490 2,899,349 (1,528,977) 2,563,767 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 53,103 17,535 888,012 1,618,241 (836,298) 1,740,593 |
Total funds 2020 £ 53,103 17,535 888,012 1,618,241 (836,298) 1,740,593 |
|---|---|---|
Page 33
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
18. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement Activities) Adjustments for: Depreciation charges Amortisation charges Losses / (Gains) on investments Dividends and interests from investments Loss on the sale of fixed assets Increase in debtors Increase in creditors Net cash provided by operating activities 19. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 20. Analysis of changes in net debt Cash at bank and in hand |
of Financial At 1 April 2020 £ 638,770 638,770 |
Group 2021 £ 823,174 27,523 10,576 (212,478) (14,272) 1,076 (216,839) 692,679 1,111,439 Group 2021 £ 1,703,039 1,703,039 Cash flows £ 1,064,269 1,064,269 |
Group 2020 £ (72,781) 36,330 11,871 120,413 (19,097) - (474,423) 464,826 67,139 Group 2020 £ 638,770 638,770 At 31 March 2021 £ 1,703,039 1,703,039 |
|---|---|---|---|
Page 34
THE SEVERN TRENT WATER CHARITABLE TRUST FUND (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
21. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.
The contributions totalling £Nil (2020 - £Nil) were payable to the fund at the balance sheet date.
22. Operating lease commitments
At 31 March 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
Group 2021 £ 50,000 87,500 137,500 |
Group 2020 £ 26,667 - 26,667 |
Charity 2021 £ 50,000 87,500 137,500 |
Charity 2020 £ 26,667 - |
|---|---|---|---|---|
| 26,667 |
23. Related party transactions
No Trustee received any remuneration during the period.
The Severn Trent Water Charitable Trust paid £1,357 (2020 £1,072) for the premium on the Trustees indemnity insurance.
No Trustee or person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the period.
Page 35
THE SEVERN TRENT WATER CHARITABLE TRUST FUND
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
24. Principal subsidiaries
The following was a subsidiary undertaking of the Charity:
| Name | Company | Registered office or principal | Holding |
|---|---|---|---|
| number | place of business | ||
| Auriga Services Limited | 05093179 | Emmanual Court, 12-14 Mill | 100% |
| Street, Sutton Coldfield, West | |||
| Midlands, B72 1QT | |||
| Included in | |||
| consolidation | |||
| Yes |
The financial results of the subsidiary for the year were:
| Name | Income | Expenditure | Profit/(Loss) | Net assets |
|---|---|---|---|---|
| £ | £ | for the | £ | |
| period | ||||
| £ | ||||
| Auriga Services Limited | 3,908,690 | (3,424,552) | 484,138 | 1,519,688 |
Turnover includes £775,300 (2020 - £793,255) of invoices made to The Severn Trent Water Charitable Trust Fund.
It has been agreed that £230,000 (2020: £165,565) in gift aid is to be paid to The Severn Trent Water Charitable Trust Fund.
Page 36