Registered number: 05309512 Charity number: 1108296
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Trustees' responsibilities statement | 7 |
| Independent auditor's report on the financial statements | 8 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 - 23 |
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023
| Trustees | Mrs Deborah Morton, Chair |
|---|---|
| Mr Alastair Richards | |
| Mr Simon Dewsnip (resigned 27 June 2022) | |
| Mrs Lynne Heath | |
| Mr Martin Crowhurst (appointed 3 May 2022) | |
| Miss Jo-Anne Boswell (appointed 3 May 2022) | |
| Company registered number 05309512 Charity registered number 1108296 Registered office and principal address 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 as a third party provider for administration and management on behalf of the Trustees. Independent auditor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Bankers Royal Bank of Scotland 38 Mosley Road Manchester M60 2BE |
Page 1
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023
The Trustees present their report and the audited financial statements for the year ended 31 March 2023.
Structure, Governance and Management
Governing document
The organisation is a charitable company limited by guarantee, incorporated on 9 December 2004 and registered as a charity on 24 February 2005. Registered company number is 05309512 and charity no is 1108296.
The organisation is governed by the Articles of Association.
Recruitment and appointment of trustees
Recruitment of the first Trustees was by selection by the settlor drawing from experience of the sector and of the region where help is to be provided. Trustees have subsequently been appointed following public advertisement.
A list of Trustees who governed in the year can be found on page 1.
Trustee induction and training
Before anyone considers seeking appointment as a Trustee, and as part of the induction process, they are expected to familiarise themselves with the responsibilities of charity trustees, read the Charity Commission literature on this subject and carefully read the trust deed, settlor's directions and the latest financial statements.
Opportunities for training are readily available and Trustees are encouraged to familiarise themselves with the day to day operations.
Risk management
The Trustees have considered the risks to which the charity is exposed and have taken steps to mitigate those risks. The Trustees maintain a detailed risk register which is considered at each Trustees' meeting and between meetings as necessary.
The Trustees periodically review the risk profile of the charity. This involves identifying the types of risk the charity faces, prioritising them in terms of potential impact and the likelihood of occurrence, and identifying the means of mitigating those risks. As part of this process, the Trustees work closely with Auriga Services Limited, who manage the day to day operations, to continually assess the adequacy of the charity's current internal controls and the costs of operating them relative to the benefits obtained. Any changes to control systems would be agreed by Trustees.
The Trustees have considered the risk that all donations are received from United Utilities Water plc and the issues that will arise from a failure to receive future donations from United Utilities Water plc. The risk has been mitigated by agreeing with United Utilities Water plc that a donation of £3.5m is guaranteed for the next year (2023/2024).
The last three financial years have seen considerable change and turbulence. As such the risk register includes consideration of issues such as Covid-19, major geo-political shocks and the condition of the UK economy. The Trustees assess the likely impact of these when considering the way in which resources are allocated and the likely level of demand for support.
Page 2
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Organisational structure
The structure of the organisation comprises the Board of Trustees with all non administrative and policy decisions made by the Trustees jointly. There is a single committee which is the Audit Committee. Administrative decisions are delegated to Auriga Services Limited who act on behalf of Trustees under an approved Scheme of Delegation.
The Trustees do not employ staff directly and hold no material assets other than bank balances.
Audit committee
The Audit Committee is a committee established by the Board of Trustees and has authority from the Board to require Auriga Services Limited to report on any aspect of the powers delegated to it, in respect of the management of the charity and on its service provision.
The responsibility of the committee is:
-
to ensure that there is an appropriate and effective framework of accountability;
-
to examine and review all systems and methods of control both financial and otherwise including risk analysis and risk management;
-
to assist the Board in longer-term financial planning and in reviewing performance against the budget and activity projections;
-
to prepare and present to Trustees the audit plan, to review the draft annual accounts and the audit report for their approval;
-
to ensure the charity is complying with all aspects of the law, relevant regulations and good practice;
-
to ensure the charity has relevant systems and processes in place to enable it to comply with all aspects of the law, relevant regulations and good practice.
The committee may be authorised to investigate on behalf of the Board anything that threatens or adversely affects the accomplishment of the charity's aims and objectives, its assets, the reliability of all records and information, its compliance with all relevant laws, regulations, policies, and its governing articles.
The committee shall request and review reports and positive assurances from Auriga Services Limited on the overall arrangements for governance, risk management and internal control. It may also request specific reports from individual functions within Auriga Services Limited as may be appropriate to the overall arrangements.
The Audit Committee will consist of no fewer than two Trustees appointed by the Board.
The Chair of the Audit Committee will be appointed by the Board.
The Company Secretary shall attend meetings of the Committee, along with any other employees of Auriga Services Limited who may be required.
Unless otherwise determined by the Board, a quorum shall consist of two members of the Audit Committee. (The Chair does not have to be present for a quorum to exist).
Page 3
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Membership of the committee and its terms of reference shall be reviewed annually by the Board at the Annual General Meeting. Any Trustee of United Utilities Trust Fund has the right to attend any Audit Committee meeting.
The committee meets at least twice a year.
During the year the Audit Committee comprised Alastair Richards (Chairman), Simon Dewsnip (resigned 27 June 2022), Lynne Heath and Martin Crowhurst (appointed 3 May 2022) .
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 and 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 United Utilities as water and/or sewerage undertaker appointed pursuant to the Water Industry Act 1991 (or any statutory modification or amendment to that Act). Such relief is to be provided at such times and in such manner as the Trustees think fit and includes the prevention and relief of poverty by the provision of advice, counselling and the education of the general public in relation to debt, debt awareness and debt prevention.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year. The Trustees provide grants to assist eligible people or organisations to achieve the charity's objects.
How our grants delivered public benefit
Achievements and performance
During the year a £3.5m donation was received from United Utilities Water Plc (2022 - £3.5m). This is the seventeenth year of the charity's activities and it has worked to ensure that potential beneficiaries are aware of the availability of grants, as well as providing grants where applicable.
Help for individuals
In pursuit of charitable objectives, the Trust was able to award grants to individuals towards water and other priority costs. Grant payments have been made, as far as possible, directly to the organisation to which the amount is due. The aim of the Trust is to help people out of immediate crisis and financial difficulty and wherever possible, to encourage future financial stability. During the year the Trust received 8,315 (2022 – 8,479) applications and was able to provide grants and further assistance to 3,806 (2022 – 3,759) individuals or families amounting to £2,879,067 (2022 – £2,875,645).
In March 2021 the Charity received a grant of £270,988 from Energy Saving Trust. The Trust also issued 4,902 emergency fuel vouchers with a value of £240,100 to 2,892 individuals and families with funding from the Energy Saving Trust.
Organisational grants
Trustees recognise the value of offering long term help and support to individuals experiencing hardship and have adopted a policy of making grants available to organisations that provide free money advice and debt counselling services. In pursuit of charitable objectives Trustees paid grants of £96,464 to seven organisations (2022 - £117,260 to five organisations) to support the delivery of money advice and debt counselling services in this financial year.
Applications are encouraged from local organisations that specialise in providing debt and money advice services that are focussed on specific groups of people.
Page 4
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Trustees’ indemnity
The Trustees confirm that the company has Trustees' and Officers' insurance in place.
Financial review
The Trustees consider that the financial position of the Trust is satisfactory.
Reserves policy
The Trust 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.
At the end of the period total funds of £341,829 (2022 - £323,170) represent unrestricted funds of £263,319 and £78,510 designated funds to meet the future costs of the provision of Money Advice and Debt Counselling.
The Trustees have reviewed the reserves policy and have agreed that the appropriate target for the Trust’s general, unrestricted reserves should remain at approximately £200,000.
The reserves policy will be reviewed again during 2023-24.
Going Concern
After considering the continued funding available along with the need for debt relief, the Trustees are of the view that there are sufficient reserves to secure the immediate future of the charity for the next 12 to 18 months and on that basis the charity is a going concern.
Investment policy
The trust deed grants 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 adopted a policy to invest any excess funds in a special interest bearing account with the Royal Bank of Scotland.
Plans for future periods
The Trustees have considered the current economic environment and the continued funding available to the charity and have determined that as United Utilities Water PLC have confirmed their commitment to support the Trust until March 2024, the charity will be able to continue to:
-
provide grants up to the full value of available funds
-
continue its commitment to support the organisational grant programme
-
maintain the relationship with the donor company, United Utilities Water PLC, to continue the positive work of the Trust.
Page 5
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Information for the auditor
In respect of each Trustee at the date the Trustees' Report is signed:
-
So far as we are aware, there is no information needed by the charity's auditor in connection with preparing their report (relevant audit information) of which they are unaware, and
-
As trustees of the charity we have taken all steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity's auditor is aware of the information.
This report has been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (issued in January 2015) and in accordance with Part 15 of the Companies Act 2006. The Trustees have taken advantage of the small company's exemption from preparing a strategic report for the year.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
Mrs Deborah Morton Chair of Trustees Date: 3rd October 2023
Page 6
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023
The Trustees (who are also the Directors of the company 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 . 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 affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 7
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILITIES TRUST FUND
Opinion
We have audited the financial statements of United Utilities Trust Fund (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the 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:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 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 Auditor's 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 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 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.
Page 8
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILITIES 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:
-
the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
-
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:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the 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; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
Page 9
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILITIES TRUST FUND (CONTINUED)
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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
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 charitable company 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 charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company 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 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, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Page 10
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILITIES TRUST FUND (CONTINUED)
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.
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: 22 October 2023
Page 11
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023
| Note Income from: Donations & Grants 3 Investments 4 Total income Expenditure on: Grant making 6 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 3,500,000 2,163 3,502,163 3,483,504 3,483,504 18,659 323,170 18,659 341,829 |
Total funds 2023 £ 3,500,000 2,163 3,502,163 3,483,504 3,483,504 18,659 323,170 18,659 341,829 |
Total funds 2022 £ 3,503,240 55 3,503,295 3,769,366 3,769,366 (266,071) 589,241 (266,071) 323,170 |
|---|---|---|---|
The notes on pages 15 to 23 form part of these financial statements.
Page 12
UNITED UTILITIES TRUST FUND (A company limited by guarantee) REGISTERED NUMBER: 05309512
BALANCE SHEET AS AT 31 MARCH 2023
| Note Current assets Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Charity funds Unrestricted funds Total funds |
670,430 (328,601) |
2023 £ 341,829 341,829 341,829 |
357,374 (34,204) |
2022 £ 323,170 |
|---|---|---|---|---|
| 323,170 | ||||
| 323,170 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
Mrs Deborah Morton
Chair of Trustees Date: 3rd October 2023
The notes on pages 15 to 23 form part of these financial statements.
Page 13
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
| Note Cash flows from operating activities Net cash used in operating activities 14 Cash flows from investing activities Dividends, interests and rents from investments Net cash provided by 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 15 The notes on pages 15 to 23 form part of these financial statements |
2023 £ 310,893 2,163 2,163 313,056 357,374 670,430 |
2022 £ (257,218) 55 55 (257,163) 614,537 357,374 |
|---|---|---|
Page 14
UNITED UTILITIES TRUST FUND (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1. General information
United Utilities Trust Fund is a registered charity number 1108296, a Company Limited by Guarantee and registered in England (registered number 05309512). 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.
United Utilities 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.
2.2 Going concern
The Trustees consider they have sufficient reserves and cash to continue operating on a going concern basis for the foreseeable future.
As stated in the Trustee’s Report, Trustees believe there are no material uncertainties that call into doubt the Charity's ability to continue as a going concern and the accounts have therefore been prepared on the basis that the Charity is a going concern.
2.3 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Page 15
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 those of an indirect nature necessary to support 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 constitutional 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.
Grant awards are accounted for as expenditure as soon as a valid expectation has been communicated to the recipient, unless the offer is conditional upon events outside the Trust’s control and it is possible but not probable that an outflow of economic benefits will arise, in which case such amounts are recognised as contingent liabilities until the grant conditions are fulfilled.
2.5 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 company 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 company 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.
2.6 Taxation
The organisation is a registered charity and as such is exempt from taxation on its income and gains to the extent that they are applied for its charitable purposes.
2.7 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.8 Financial instruments
The company 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.
Page 16
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
3. Income from donations
| Unrestricted funds 2023 Restricted funds 2023 £ £ Donations from United Utilities 3,500,000 - Unrestricted funds 2022 Restricted funds 2022 £ £ Donations from United Utilities 3,500,000 - Grants - 3,240 3,500,000 3,240 4. Investment income Unrestricted funds 2023 £ Investment income 2,163 Unrestricted funds 2022 £ Investment income 55 |
Total funds 2023 £ 3,500,000 |
|---|---|
| Total funds 2022 £ 3,500,000 3,240 |
|
| 3,503,240 | |
| Total funds 2023 £ 2,163 |
|
| Total funds 2022 £ 55 |
Page 17
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
5. Grants payable
Payable to individual beneficiaries or direct to creditors in respect of debts owed *.
| Grants payable Water debt - United Utilities Water Plc White goods and other household needs Bankruptcy orders Debt Relief Orders Funeral costs Grants payable - Organisational grants Citizens Advice Halton Citizens Advice Preston Liverpool Community Advice The Oaks @ Blackburn Foodbank Institute of Money Advisers Cheetham Hill Advice Centre Burnley & Pendle CA Venus Redress Funding Emergency Fuel |
2023 £ 2,729,984 114,363 16,450 18,270 - 2,879,067 15,470 13,124 13,628 11,050 - 13,222 10,000 20,000 96,494 - 2,975,561 |
2022 £ 2,729,987 113,188 17,680 14,490 300 |
|---|---|---|
| 2,875,645 31,343 26,250 31,649 22,100 5,918 - - - |
||
| 117,260 240,100 |
||
| 3,233,005 |
- It is the policy of the Trustees that wherever possible a beneficiary's grant will be paid direct to the relevant creditor.
Page 18
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
6. Analysis of expenditure by activities
| Grant making Grant making 7. Direct costs Auriga administration charges 8. Support costs Insurance Website and web maintenance Bank charges Governance costs |
Activities undertaken directly 2023 £ 482,429 Activities undertaken directly 2022 £ 516,557 |
Grant funding of activities 2023 £ 2,975,561 Grant funding of activities 2022 £ 3,233,005 |
Support costs 2023 £ 25,514 Support costs 2022 £ 19,804 2023 £ 482,429 2023 £ 3,332 6,000 449 15,733 25,514 |
Total funds 2023 £ 3,483,504 |
|---|---|---|---|---|
| Total funds 2022 £ 3,769,366 |
||||
| 2022 £ 516,557 |
||||
| 2022 £ 2,943 6,000 471 10,390 |
||||
| 19,804 |
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UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
9. Auditor's remuneration
The auditor's remuneration amounts to an auditor fee of £8,600 ( 2022 - £6,825 ).
10. Trustees' remuneration and related party transactions
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .
During the year ended 31 March 2023, expenses totalling £86 were reimbursed to Trustees (2022 - £NIL) .
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.
11. Creditors: Amounts falling due within one year
| Trade creditors Accruals and deferred income |
2023 £ 15,992 312,609 328,601 |
2022 £ 16,503 17,701 |
|---|---|---|
| 34,204 |
.
| Resources deferred during the year Deferred income at 31 March 2023 |
2023 £ 291,666 291,666 |
2022 £ - |
|---|---|---|
| - |
Deferred income at the balance sheet date is represetned by income from United Utilities Water Limited received in advance.
Page 20
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
12. Summary of funds
Summary of funds - current year
| Designated funds General funds |
Balance at 1 April 2022 £ 55,752 267,418 323,170 Balance at 1 April 2021 £ 66,191 252,062 270,988 589,241 |
Income £ - 3,502,163 3,502,163 Income £ - 3,500,055 3,240 3,503,295 |
Expenditure £ (96,494) (3,387,010) (3,483,504) Expenditure £ (117,260) (3,377,878) (274,228) (3,769,366) |
Transfers in/out £ 119,252 (119,252) - Transfers in/out £ 106,821 (106,821) - - |
Balance at 31 March 2023 £ 78,510 263,319 |
|---|---|---|---|---|---|
| 341,829 | |||||
| Balance at 31 March 2022 £ 55,752 267,418 - |
|||||
| Summary of funds - prior year | |||||
| Designated funds General funds Restricted funds |
|||||
| 323,170 |
Designated Funds
Designated Funds represents amounts designated by the Trustees to meet the future costs of the provision of Organisation Grants.
A transfer was made from the general fund to cover the resources expended from designated funds.
Restricted Funds
Restricted Funds represents amounts relating to specific projects as stated by the funding agreement, and as such can only be used for this purpose.
Page 21
(A company limited by guarantee)
UNITED UTILITIES TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
13. Analysis of net assets between funds Analysis of net assets between funds - current year
| Unrestricted funds 2023 £ Current assets 670,430 Creditors due within one year (328,601) Total 341,829 Analysis of net assets between funds - prior year Unrestricted funds 2022 £ Current assets 357,374 Creditors due within one year (34,204) Total 323,170 |
Total funds 2023 £ 670,430 (328,601) 341,829 Total funds 2022 £ 357,374 (34,204) 323,170 |
|---|---|
14. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Dividends, interests and rents from investments Increase in creditors Net cash provided by/(used in) operating activities |
2023 £ 18,659 (2,163) 294,397 310,893 |
2022 £ (266,071) (55) 8,908 (257,218) |
|---|---|---|
Page 22
UNITED UTILITIES TRUST FUND
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
15. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2023 £ 670,430 670,430 |
2022 £ 357,374 |
|---|---|---|
| 357,374 |
16. Analysis of changes in net debt
| At 1 April | At 31 March | ||
|---|---|---|---|
| 2022 | Cash flows | 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 357,374 | 313,056 | 670,430 |
17. Related party transactions
There have been no related party transactions that require disclosure.
Page 23