Reglstered number: 05309512 Charlty number: 1108296 UNITED UTILITIES TRUST FUND (A company limitsd by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 UNITED UTILITIES TRUST FUND (A company limited by guarantee) CONTENTS Pa9e Reference and administrative details of the company, Its Trusteos and advlsers Trustees, report Trustees. responsibilltles statement Indopendent auditor's report on tho flnanclal statementg ststement of financlal actlvltlos 8-11 12 Balance sheet 13 statement of cash flows 14 Notes to the financial statgments 15-24 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 2025 Trustees Deborah Morton, Chair Alastair Richards Lynn& Heath {resigned 31 March 2025) Martin Crowhurst Jo-Anne Boswell Michelle Marther (appointed 13 March 2025) Sally Bence (appointed 13 March 2025) Gerard Devlin {appointed 13 March 2025) Eamonn Guilfoyle (appointed 13 March 2025) Company regist8red number 05309512 Charlty registered number 1108296 Reglstered office and princlpal address Crowe UK LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Senlor management team The Trust has no employees and has engaged Auriga Services Limited as a third paty provider for administration and management on behalf of the Trustees. Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Independent auditor Bankers Royal Bank of Scotland 38 Mosley Road Manchester M60 2BE Page 1 UNITED UTILITIES TRUST FUND IA company limSted by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their report and the audited financial statements for the year encled 31 March 2025. Structure Govemance and Mana ement Govemin documen 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 110829£. The organisation is governed by the Articles of Association. Recrultment and a ointment 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 and are appointed by the Board, Durfng the year a number of new Trustees have been appointed in order to refresh the Board and to provide for the rotatlon of Trustees. A list of Trustees who governed in the year can be found on page 1. Trustee induction and trainin Before anyone considers seeking appointment as a Trustee, and as part of the induction process, they are expected to familiarise themselves with the responsibilities cf charity trustees, read the Charty 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. New Trustees meet with existing Board members and spend time viewing the operations of the Charity. Risk mana ement 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 meetlngs, as necessary. The Trustees periodÈcally review the risk profile of the chartty, This involves identifying the types of risk the chartty faces, prioritising them in terrns of potential impact and the likelihood of occurrence, and identfying the means of mitigating those risks. As part of this process, the Trustees work closely with Auriga Services Limited, who manage the day-to4ay 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 Wal'er plc. The risk has been mitigated by agreeing with United Utilities Water plc that a donation of £3.8m is guaranteed for the next year (202512026). The last three financial years have seen considerable change and turbulence. As such the risk register includes consideration of issues such as the condition of the UK economy. The Trustees assess the likely impact of these when Gonsidering the way IN which resources are allocated and the likely level of demand for support. In recent years we have also seen considerable change in the personnel at Auriga Services Limited as the organisation has been through its own period of change and as a result our dependence on them as a supplier is also included in the risk register. Page 2 UNrrED UTILITIES TRUST FUND (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Governance The Trustees continue to be aware of the need for good governance and transparency in how decislons are made. In recent years we have used the Charity GDvemance Code in order to consider how our decision-making and processes can be improved and have implemented these matters wherever possible. In 2024 the Charity commissioned an external govemance review which provided strong assurance around the way in which the organisation works. Any advice or reGommendations made from this review will be implemented. Or anisational structure The structure of the organisation comprlses the Board of Trustees with all non4dministrative and policy decisions made by the Trustees jointly. There is a slngle committee which is the Audit Committee. Administrative decisions are delegated to Auriga Services Lirnited 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. Audi committee Th8 Audit Committee is a committee established by the Board of Trustees and has authority from the Board to require Auriga SeNices Limited to report on any aspect of the pow&rs delegated to it, in resp8Ct 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 effeclive framework of accountability. to examine and review all systems and methods of control both financial and otherwisg including risk analysis and risk management to assist the Board in longer-term financial planning and in reviewing perfornian￿ against the budget and aGtivity 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 practiGe. to ensure the charity has relevant systems and processes in place to enable it to compty 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 charitys aims and objectives, its assets, the reliability of all records and infomiation, its compliance with all relevant laws, regulations, policies, and its goveming 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 fijnctions within Auriga se￿ices 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 Commiltee will be appointed by the Board. The Company Secretary may attend meetings of the Committee, along wth any other employees of Auriga SeNitss Limited who rnay be required. Unless otherwise determined by the Board, a quorum shall consist of 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 Ilmlted by guarantee) TRUSTEES, REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 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 (Chair), Lynne Heath and Martin Crowhurst, Ob'ectives and activi 'es for the ublic benefit The Charity's objects are the relief of those persc)ns who are in condition of need, poverty, hardship or other distress and are unable to meet the cost of charges for the suppty of water andlor sewerage services provided to premises used or ocGupied by them by United Utilities as water andlor sewerage undertaker appointed pursuant to the Watsr 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 rellef 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 Trustegs confirm that they have referred to the guidan￿ contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activitie5 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 rants delivered ublic benefl Achievements and erformance During the year, a £3.5m donation was received from United Utilities Water p5c (2024 £3.5m). This is the nineteenth year of the charivs activities, and it has worked to ensure that potential beneficiaries are aware of the availability of grants, as well as providing grants where applicable. Hel for individuals In pursuit of charitsble 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, directty 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 futu￿ financial stability. During the year, the Trust received 6,463 (2024 - 6,870) applications and was able to provide grants and further assistance to 3.387 (2024- 3,963) individuals or families amounting to £2,838,890 (2024- £2,893,355). Or anisational rants 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 £107,022 to seven organisations (2024 - £111, 183 to four 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 focused on specific groups of people. Page 4 UNITED UTILITIES TRUST FUND (A company limlted by guarantee} TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Trustees, indemni 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. eSe￿eS olic The Trust maintalns reseNes to ensure that It can 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 Ihe period total funds of £394,013 (2024- £337,256) represent unrestricted funds of £319,249 and £74,764 designated funcls to meet the fvture costs of the provision of Money Advice and Debt Counselling. The Trustees have revlewed the reserves policy and have agreed that the appropriate target for the Trust's general, unrestrfcted reserves should remain at approximately £200,000. The reserves policy will be reviewed again duiing 2025-26. Goin Concern After considering the continued fvnding 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 th8 next 12 to 18 months and on that basis the charity is a going concern. Investment oli 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 eriods 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 2025, the Gharity 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 In addition we will work with United Utilities Water plc in order to consider new ways to support the people of the region and to assist those in debt.. Page 5 UNITED UTILITIES TRUST FUND IA company Ilmited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Information for the auditor In respect of each Trustee at the date the Trustees, Report is signed.. As far as we are aware, there is no information needed by the charity's audltor 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 Ihat we ought to have taken to make oursefves 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 Recomrnended Practice, Accounting and Reporting by Charities (issued in January 2015) and in accordance with Part 15 of the Companies Act 2006, The TNstees have taken advantage of the small compan15 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.. Deborah Morton Chair of Trustees Date: 29. cjq . x£ Page 6 UNITED UTIUTIES TRUST FUND (A company limited by guarantee) STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 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 Klngdom 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 vigw of the state of affairs of the company and of its incoming resources and application of rèsources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to., select suitable accounting policies and then apply them consistently., observe the methods and prtnciples of the Charities SORP (FRS 102)., make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements,, prepare the financial statements on the going concem 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 dlsclose with reasonable accuraGy at any time the financial position of the company and enable them to ensure that the financial ststements 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 UNITED LrriLITIES TRUST FUND (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILrriES TRUST FUND Oplnlon We have audited the financial statements of United Utilities Trust Fund (the 'charitable company) for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balancè 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 Acceptsd Accounting Practi￿}. In our opinlon the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2008. Basi8 for opinion We Gonducted our audit 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 $8Ction 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 Standartl. 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. Conclusion8 r8lating 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 uncertaintie5 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 ￿e1ve months from when the financial ststements 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 UNITED UTILITIES.TRUST FUND (A company limited by guarantee) 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 oplnion 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 whelher the other information is materialty inconsistent wlth the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially mlsstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this giv8s rise to a material misstatement in the financial statements themselves. If, based on the work we hav& perfomied, we conclude that there is a material rnisstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlon on other matters prescrfbed 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 ststements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requirgd to report by exception In the light of our knowledge and understanding of the charitable company and tts 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 rgquires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns: or certain disclosures of Trustees, remuneration specified by law are not made. or we have not received all the infomiation and explanations we require for our audit., or 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 frotn the requirement to prepare a Strategic Report. Page 9 UNITED UTILITIES TRUST FUND (A company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILITIES TRUST FUND {CONTINUED} Responsibiliti8s of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the haritable 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 pr8paring 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 concem and using the going concern basis of accounting unless the Truslees either intend to liquidate the charttable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibiliti88 for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, wh8ther due to fraud or error, and to issue an Auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wilh ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are Gonsidered material if, individually or in the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of nonrfomplian￿ with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fiaud. The extgnt to which our procedures are capable of detecting irregularities, including fraud is detrailed below.. We obtsined an understanding of the legal and regulatory frameworks within which the 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. We assessed the required Complian￿ with these Isws 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 COmpan￿S ability to operate or to avoid a material penalty. We also considered the opportunities and in￿ntiVeS that may exist within the Company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation and Taxation legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of th? Directors 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 in the following areas: timing of recognition of income- the override of controls by managemen( including posting of unusual journals,, inappropriate treatment of non-routine transactions and areas of estimation uncertainty. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of nOn-￿ut1ne trensactions, sample testing on the posting of journals and income transactions and review of accounting gstimates for biases. Page 10 UNITED UTILrriES TRUST FUND (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNITED UTILrriES TRUST FUND (CONTINUED) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-complianc& with regulation. This risk increases the more that compliance with a law or regulation is removed from the @vents and transactions refleGted in the financial statements, as we will b6 less likely to become aware of instances of non