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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 03958840 (Wales) REGISTERED CHARITY NUMBER: 1114492

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

AWEL AMAN TAWE

Bevan Buckland LLP Chartered Accountants And Statutory Auditors Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

AWEL AMAN TAWE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 28
Detailed Statement of Financial Activities 29

AWEL AMAN TAWE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charitable company is a non-profit making organisation whose objectives are:

The charitable company's income derives from contracts and grants from local and central government, charitable trusts, donations and trading activities.

Page 1

AWEL AMAN TAWE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

ACHIEVEMENT AND PERFORMANCE Charitable activities Annual Report - 2022

The overall aims of the charity are to tackle climate change in Wales and enable local regeneration in the Upper Swansea and Amman Valley. To help achieve this, we:

Engage people in climate change action

We have nearly 1500 members in our co-ops. We have also over 50 schools and community groups who are members and they own over £100k of the shares, giving them a sustainable income stream. We estimate that there are over 50,000 people in these groups which now co-own the Awel and Egni Co-ops. Members include the local rugby and football clubs, over 40 schools, Merched y Wawr, the Food Bank and the Friends of Pontardawe Centre.

Tackle fuel poverty

Egni Co-op: we now have 95 sites across Wales with 4.5 MWp of capacity. These sites saved about £119k/year in electricity costs in 2022 and reduced annual carbon emissions by over 1,000 tonnes/year. Many of our community buildings play a key role during the COVID pandemic and costing of living crisis providing foodbanks and other vital services.

We hope to develop fuel poverty/energy efficiency advice services for domestic households in the future depending on funding and our capacity. We are aiming to integrate this support within the Hwb y Gors development.

Hwb y Gors

Hwb y Gors: we started refurbishment of the former Cwmgors Primary School in January 2021 and aim to develop it as zero carbon education, arts and enterprise centre. We've secured £1.9m of capital and loan funding towards the refurbishment costs. Progress can be seen on https://www.facebook.com/hwbygors. We have installed 90kW of solar and a 50kW ground source heat pump. We are engaging the community through a range of community arts projects using textiles, stained glass and tilemaking, drawing on local heritage. The work will then be installed within Hwb y Gors which we aim to open in December 2023.

Taith Co-op

We have two electric vehicles and work with vulnerable groups in SW Wales to enable them to access services and support. In particular, we work with people with learning difficulties, disabilities, carers and the elderly. One of the vehicles has a wheelchair ramp. We are active members of the Community Transport Association. We have been operating this service successfully for over a year. Since September 2022, we have supported 102 passengers who have made 1134 journeys travelling a total of 15,492 miles. This has saved over 1.4 tonnes of carbon emissions.

Other projects

-We have secured planning permission for a ground mounted solar farm next to our turbines on the Gwrhyd. The solar would share the grid connection with our existing wind farm and we have secured agreement that we can install upto 3MW of solar under our grid connection agreement which is three time what was originally offered by National Grid (formerely Western Power Distribution). We are now securing additional agreements and developing the financial model.

Page 2

AWEL AMAN TAWE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

-We have supported a number of energy efficiency surveys of community groups, rugby and football clubs in Wales. This has led to a number being successful in securing funding for solar panels, more efficient boilers and other measures.

Job Creation

-Job creation: we've increased our team from six to nine staff

Donors

We would like to thank all our donors and the public for their support in 2022.

FINANCIAL REVIEW

Reserves policy

Unrestricted General Funds as of 31st December 2022 are shown as £254,909 (Note 19 of the accounts). Trustees agree to hold 6 months running costs for the charity - this is based on the Annual Expenditure of £462,124 as shown in the accounts + 10% contingency.

Trustees agreed to designate £290,000 towards Hwb y Gors which aligns with the charity's objectives.

Awel Aman Tawe aims to build up reserves in future years to enable it to continue and expand the services they currently provide and develop new projects in the future. This policy will be reviewed annually or when significant changes occur within the organisation.

Investments and other powers

The trustees have the power to expend the funds of the charitable company in such manner as they consider being beneficial for the achievement of the charitable company's objects. They are also empowered to invest such part of the funds as they see fit in the furtherance of the objects of the charitable company.

Financial Statements

The trustees consider that in view of the non-profit making status of the charitable company's activities, the terms "profit and loss" are not appropriate to giving a true and fair view. Accordingly, under the provisions of the Companies Act 2006, the term "profit and loss account" has been replaced by "income and expenditure account", and the words "profit" and "loss" by "surplus" and "deficit".

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The organisation was incorporated on 9th March 2000 and registered as a charity on the 1st June 2006.

Recruitment and appointment of new trustees

The directors of the charitable company are also charity trustees for the purpose of charity law. The rules regarding the number of directors and their appointment, reappointment and removal are contained in the Articles of Association to which reference should be made.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees actively review the major risks which the charitable company faces on a regular basis and we believe that maintaining our free reserves at sufficient levels to enable the charity to continue and expand the services they provide. The trustees have also examined other operational and business risks which we face and confirm that we have established systems to mitigate the significant risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03958840 (Wales)

Registered Charity number

1114492

Page 3

AWEL AMAN TAWE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

Registered office 76-78 Gwilym Road Cwmllynfell Swansea SA9 2GN

Trustees

B Jones D Stonehouse C McGurgan B E Edwards M Jervis Ms H Roach (appointed 16.3.22) Ms K J Powis (appointed 16.3.22) Dr C M Maby (appointed 21.9.22) A W Lloyd (appointed 16.3.22) C B Johnes (appointed 21.9.22)

Company Secretary

D McCallum

Auditors

Bevan Buckland LLP Chartered Accountants And Statutory Auditors Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Bankers

The Co - operative Bank P.O. Box 250 Delf House Southway Skelmersdale WN8 6WT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

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

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

Page 4

AWEL AMAN TAWE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

AUDITORS

The auditors, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 27/09/2023 and signed on its behalf by:

..........................................................................

B E Edwards - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AWEL AMAN TAWE

Opinion

We have audited the financial statements of Awel Aman Tawe (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AWEL AMAN TAWE

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible 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.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AWEL AMAN TAWE

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Vickers (Senior Statutory Auditor) for and on behalf of Bevan Buckland LLP Chartered Accountants And Statutory Auditors Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Date: ..27/09/2023...........................................

Page 8

AWEL AMAN TAWE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Grant Income
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
6
Energy and environmental projects
Grant Income
Total
NET INCOME
Transfers between funds
19
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
-
154,817
350,342
10,620
515,779
462,124
-
462,124
53,655
99,413
153,068
937,441
1,090,509		 Restricted
funds
£
-
646,538
-
-
646,538
239,997
-
239,997
406,541
(99,413)
307,128
796,749
1,103,877		 2022
Total
funds
£
-
801,355
350,342
10,620
1,162,317
702,121
-
702,121
460,196
-
460,196
1,734,190
2,194,386		 2021
Total
funds
£
500
1,433,411
212,034
8,798
1,654,743
455,760
-
455,760
1,198,983
-
1,198,983
535,207
1,734,190

The notes form part of these financial statements

Page 9

AWEL AMAN TAWE

BALANCE SHEET 31 DECEMBER 2022

Notes
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
1,839,518
12,082
1,851,600
477,082
178,510
655,592
(188,734)
466,858
2,318,458
(1,227,949)
1,090,509		 Restricted
funds
£
1,051,491
-
1,051,491
52,386
-
52,386
-
52,386
1,103,877
-
1,103,877		 2022
Total
funds
£
2,891,009
12,082
2,903,091
529,468
178,510
707,978
(188,734)
519,244
3,422,335
(1,227,949)
2,194,386
1,090,509
1,103,877
2,194,386		 2021
Total
funds
£
1,937,420
102,001
2,039,421
486,501
329,327
815,828
(71,660)
744,168
2,783,589
(1,049,399)
1,734,190
937,441
796,749
1,734,190

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

The financial statements were approved by the Board of Trustees and authorised for issue on ..27/09/2023.. and were signed on its behalf by:

............................................. B E Edwards - Trustee

The notes form part of these financial statements

Page 10

AWEL AMAN TAWE

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of fixed asset investments
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Related party loan movement
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
£
688,032
(147,050)
540,982
(1,021,614)
89,919
(931,695)
(100,000)
-
339,896
239,896
(150,817)
329,327
178,510		 2021
£
997,390
(40,921)
956,469
(750,461)
-
(750,461)
25,000
(13,508)
53,411
64,903
270,911
58,416
329,327

The notes form part of these financial statements

Page 11

AWEL AMAN TAWE

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2022
£
Net income for the reporting period (as per the Statement of Financial
Activities)
460,196
Adjustments for:
Depreciation charges
68,025
Interest paid
147,050
Increase in debtors
(42,967)
Increase in creditors
55,728
Net cash provided by operations
688,032		 2021
£
1,198,983
81,070
40,921
(329,265)
5,681
997,390

2.

ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank and in hand 329,327 (150,817) 178,510
329,327 (150,817) 178,510
Debt
Debts falling due within 1 year (16,705) (61,346) (78,051)
Debts falling due after 1 year (118,689) (1,109,260) (1,227,949)
(135,394) (1,170,606) (1,306,000)
Total 193,933 (1,321,423) (1,127,490)

The notes form part of these financial statements

Page 12

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts are prepared in sterling

The charity constitutes a public benefit entity as defined by FRS 102.

Legal status of the charity

The charity is private limited company by guarantee incorporated in England and Wales and has no share capital.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Donations, are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Income on consultancy and contracts is recognised on an accruals basis and recognised in the period in which it relates to.

Income from Solar Panels is recognised over the period of electricity generation on an accruals basis.

Management charge income is recognised in relation to the period which the management services apply to, on an accruals basis.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly relate to charitable activities. Support costs include back office costs, insurance and governance costs which support the charity's activities. These costs have been allocated to expenditure on charitable activities

Depreciation

Depreciation of fixed assets is calculated to write off their cost less any residual value over their estimated useful lives as follows:

Page 13

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

Depreciation

Freehold land No depreciation
Freehold buildings 2% straight line
Solar panels 5% straight line
Plant & machinery: Additions pre 2008 15% reducing balance
Additions 2008 onwards 25% straight line
Office equipment: Additions pre 2008 15% reducing balance
Additions 2008 onwards 25% straight line

Assets purchased which have a value of less than £1,000 are expensed to the profit and loss account in the year of purchase.

Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Pensions

Contributions are charged to the income and expenditure account as they become payable in accordance with the rules of the scheme.

Financial instruments

The charity 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts arc shown within borrowings in current liabilities.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Fixed asset Investments

Shares held in fixed asset investments are held at cost.

Significant management judgements and key sources of estimation uncertainty

Page 14

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Significant management judgements

The following are management judgements in applying the accounting policies of the charity that have the most significant effect on the amounts recognised in the financial statements.

Estimation of the useful economic life of buildings,solar panels, plant and machinery and office equipment.

2. DONATIONS AND LEGACIES

3.

4.

Donations
OTHER TRADING ACTIVITIES
Contracts and consultancy
Co-op Management
Solar panel revenue
INVESTMENT INCOME
Investment income		 2022
£
-
2022
£
117,653
100,817
131,872
350,342
2022
£
10,620		 2021
£
500
2021
£
41,102
56,160
114,772
212,034
2021
£
8,798

Investment income includes interest earned on share capital invested in Awel Ltd and Egni.

5. INCOME FROM CHARITABLE ACTIVITIES

Activity
Grants
Grant Income
Grants received, included in the above, are as follows:
YouCoop
Awel y Gwrhyd CIC - S106 Community Benefit
Awel y Gwrhyd CIC - Common Land
Awel y Gwhryd CIC
Rural Development Programme (RDP) – Gwrhyd Solar
WCVA - Kickstart
Community Facilities Programme – Welsh Government
Lottery Community Fund - We are Energy Warriors
Carried forward		 2022
£
801,355
2022
£
1,577
33,642
22,428
100,000
-
9,834
50,000
-
217,481		 2021
£
1,433,411
2021
£
-
31,888
21,259
125,000
18,472
4,952
250,000
9,600
461,171

Page 15

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

5. INCOME FROM CHARITABLE ACTIVITIES - continued

Brought forward
Western Valleys Community Transport Scheme, Community Transport
Association - Welsh Government
Third Sector Resilience Fund – Wales Council for Voluntary Action (WCVA)
People and Places - The National Lottery Community Fund
Welsh Government’s Landfill Disposal Tax Communities Scheme – Wales
Council for Voluntary Action (WCVA)
Garfield Weston Foundation
Virgin Media O2 Together Fund
Pembrokeshire Coast P.A. Sustainable Development Fund
Moondance Foundation
Awards for All - The National Lottery Community Fund
Transforming Towns, Neath Port Talbot County Borough Council (NPTCBC)
Arts Council of Wales
Margaret Davies Charity Grant
Rural Development Programe- Engagement Officer
Welsh Government Energy Service
Ein MIlltir Sqwar Defibrillator
Morel Trust - Hwb y Gors
Clothworkers Foundation - Hwb y Gors
West Glamorgan Regional Partnership-Learning Disabilities Fund
Heritage Lottery - Ein Milltir Sqwar
Heritage Lottery - Hwb y Gors
Ashley Family Foundation - Hwb y Gors
Welsh Government Energy Service- Gwrhyd Solar/Wind
Bus Services Support Grant- Community Transport- NPTCBC
NPTCVS UK Community Renewal Fund – Third Sector Grants Scheme
Other grant income		 2022
£
217,481
115,575
50,000
100,000
49,600
15,000
-
-
-
-
-
-
-
-
-
1,679
3,000
100,000
11,537
39,400
20,000
25,000
25,000
6,297
24,616
(2,830)
801,355		 2021
£
461,171
126,377
75,000
400,000
49,999
15,000
7,000
10,080
100,000
10,000
98,891
37,813
5,000
22,080
15,000
-
-
-
-
-
-
-
-
-
-
-
1,433,411

6. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 7) Totals
£ £ £
Energy and environmental projects 686,164 15,957 702,121

7. SUPPORT COSTS

SUPPORT COSTS
Support
costs
£
Energy and environmental projects 15,957

Page 16

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022 2021
£ £
Depreciation - owned assets 68,025 81,070
Auditors remuneration - audit services 9,000 7,500
Auditors remuneration - accountancy and other services 4,500 2,500

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

10. STAFF COSTS

31/12/2022 31/12/2021
£ £
Wages and Salaries 247,070 186,960
Social Security Costs 18,204 11,889
Pension Costs 12,577 10,552
277,850 209,401

The staff costs are included in a number of the expense headings within the detailed income and expenditure account.

The average number of employees during the year was as follows:

The average number of employees during the year was as follows:
2022 2021
Management/ Finance 5 3
Projects 7 5
12 8

No employee was paid more than £60,000.

The Key Management Personnel of the Charity received remuneration of £87,476 (31/12/2021 £56,625) , this includes gross salary paid, employers national insurance contributions and employers pension contributions. The number of staff classed as key management was 2 for 2022 and 1 for 2021

Defined Contribution Pension Scheme

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The pension cost charge represents contributions payable by the charitable company to the fund and amounted to £12,577 (31/12/2021: £10,552)

Page 17

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AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Grant Income
Other trading activities
Investment income
Total
EXPENDITURE ON
Charitable activities
Energy and environmental projects
Grant Income
Total
NET INCOME
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
Prior year adjustment
As restated
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
500
183,099
212,034
8,798
404,431
369,500
-
369,500
34,931
367,303
402,234
470,732
64,475
535,207
937,441		 Restricted
funds
£
-
1,250,312
-
-
1,250,312
86,260
-
86,260
1,164,052
(367,303)
796,749
107,889
(107,889)
-
796,749		 Total
funds
£
500
1,433,411
212,034
8,798
1,654,743
455,760
-
455,760
1,198,983
-
1,198,983
578,621
(43,414)
535,207
1,734,190

Page 18

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

12. TANGIBLE FIXED ASSETS

COST
At 1 January 2022
Additions
Disposals
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
Eliminated on disposal
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
COST
At 1 January 2022
Additions
Disposals
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
Eliminated on disposal
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 January 2022
Disposals
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
845,978
945,288
-
1,791,266
36,743
2,491
-
39,234
1,752,032
809,235
Office
Equipment
£
51,495
436
(23,950)
27,981
49,418
801
(23,950)
26,269
1,712
2,077		 Solar
panels
£
1,132,139
-
-
1,132,139
82,118
56,607
-
138,725
993,414
1,050,021
Motor
vehicles
£
31,130
49,198
-
80,328
7,783
20,082
-
27,865
52,463
23,347		 Plant and
machinery
£
79,996
26,692
-
106,688
27,256
(11,956)
-
15,300
91,388
52,740
Totals
£
2,140,738
1,021,614
(23,950)
3,138,402
203,318
68,025
(23,950)
247,393
2,891,009
1,937,420
Unlisted
investments
£
102,001
(89,919)
12,082
12,082
102,001

Page 19

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

13. FIXED ASSET INVESTMENTS - continued

There were no investment assets outside the UK.

Fixed Asset Investments are made up £10.1k (2021 £100k) of share capital in Egni (a Co-operative and Community Benefit Society). £89,9k of shares were repaid to Awel Aman Tawe in the year at nominal value.

Fixed Asset investments also include £1 of share capital in Awel Limited (a Co-operative and Community Benefit Society) and £2,000 of share capital in Trydani (a Co-operative and Community Benefit Society).

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Amounts owed by related parties
Other debtors
VAT
Prepayments and accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other loans (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Other loans (see note 17)
Amounts owed to related parties		 2022
£
21,885
383,684
78,522
9,983
35,394
529,468
2022
£
78,051
28,646
2,408
3,930
75,699
188,734
2022
£
1,227,949
-
1,227,949		 2021
£
20,868
108,771
336,326
18,978
1,558
486,501
2021
£
16,705
6,271
3,921
5,811
38,952
71,660
2021
£
118,689
930,710
1,049,399

Related party balances with Egni have been restructured during the year with some of the balance being converted to loans

More details on this are included in note 17.

17. LOANS

An analysis of the maturity of loans is given below:

2022 2021
£ £
Amounts falling due within one year on demand:
Other loans 78,051 16,705
Amounts falling between one and two years:
Other loans - 1-2 years 80,905 13,927
Amounts falling due between two and five years:
Other loans - 2-5 years 233,825 65,704

Page 20

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

17. LOANS - continued

LOANS - continued
2022 2021
£ £
Amounts falling due in more than five years:
Repayable by instalments:
Other loans more than 5yrs 913,219 39,058

Related party balances with Egni Co-op (Egni) have been restructured during the year with some of the balance being converted to loans.

Egni had previously provided loans to pay for the purchase and installation costs of solar panels (PV) and the purchase and installation of a Ground Source Heat Pump (GSHP) on behalf of AAT.

Amounts owed to Egni included within loans is as follows:

Amounts owed to Egni included within loans is as follows:
2022
Solar Panel (PV) loan 1,005,824
Ground Source Heat pump (GSHP) loan 83,843

18. SECURED DEBTS

The following hold a charge against the freehold land and property of the charity

NPTCBC - dated Dec 2022 WCVA - dated Dec 2022 and Dec 2006 Big Lottery Fund - dated April 2022

Page 21

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS

Unrestricted funds
General funds
Designated Asset Fund - Capital
Designated Long Term Investments
Hwb y Gors
Restricted funds
People and Places - The National Lottery
Community Fund
Transforming Towns, Neath Port Talbot
County Borough Council (NPTCBC)
Arts Council of Wales
Margaret Davies Charity
Moondance Foundation
Welsh Government’s Landfill Disposal Tax
Communities Scheme – Wales Council for
Voluntary Action (WCVA)
Western Valleys Community Transport
Scheme, Community Transport Association
- Welsh Government
Third Sector Resilience Fund – Wales
Council for Voluntary Action (WCVA)
Community Facilities Programme – Welsh
Government
Garfield Weston Foundation
Awards for All - The National Lottery
Community Fund
Restricted Hwb y Gors capital fund
Ein Milltir Sgwar - Defibrillator
Bus Services Support Grant - Community
Transport (BSSG) NPT
Heritage Lottery fund - Ein Militir Sgwar
Morel Trust fund
Clothworkers Foundation - Hwb y Gors
Ashley Family Foundation Fund - Hwb y
Gors
Welsh Government Energy Service - Gwrhyd
Solar & Wind Project
TOTAL FUNDS		 At 1.1.22
£
200,416
635,024
102,001
-
937,441
88,757
98,891
37,242
5,000
100,000
-
93,116
37,500
-
15,000
10,000
311,243
-
-
-
-
-
-
-
796,749
1,734,190		 Net
movement
in funds
£
153,068
-
-
(99,413)
53,655
100,000
-
(37,242)
-
-
49,600
80,000
(25,000)
50,000
15,000
(10,000)
20,000
1,679
6,297
20,000
3,000
100,000
25,000
8,207
406,541
460,196		 Transfers
between
funds
£
(98,575)
(101,506)
(89,919)
389,413
99,413
(188,757)
(98,891)
-
(5,000)
(100,000)
(49,600)
(173,116)
-
(50,000)
-
-
720,248
-
(6,297)
(20,000)
(3,000)
(100,000)
(25,000)
-
(99,413)
-		 At
31.12.22
£
254,909
533,518
12,082
290,000
1,090,509
-
-
-
-
-
-
-
12,500
-
30,000
-
1,051,491
1,679
-
-
-
-
-
8,207
1,103,877
2,194,386

Page 22

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

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

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General funds 515,779 (362,711) 153,068
Hwb y Gors - (99,413) (99,413)
515,779 (462,124) 53,655
Restricted funds
People and Places - The National Lottery
Community Fund 100,000 - 100,000
Arts Council of Wales - (37,242) (37,242)
Welsh Government’s Landfill Disposal Tax
Communities Scheme – Wales Council for
Voluntary Action (WCVA) 49,600 - 49,600
Western Valleys Community Transport
Scheme, Community Transport Association
- Welsh Government 115,575 (35,575) 80,000
Third Sector Resilience Fund – Wales
Council for Voluntary Action (WCVA) 50,000 (75,000) (25,000)
WCVA- Kick start 9,834 (9,834) -
Community Facilities Programme – Welsh
Government 50,000 - 50,000
Garfield Weston Foundation 15,000 - 15,000
Awards for All - The National Lottery
Community Fund - (10,000) (10,000)
Restricted Hwb y Gors capital fund 20,000 - 20,000
Transport - Learning Disabilites Fund 11,537 (11,537) -
Ein Milltir Sgwar - Defibrillator 1,679 - 1,679
Bus Services Support Grant - Community
Transport (BSSG) NPT 6,297 - 6,297
Heritage Lottery fund - Ein Militir Sgwar 59,400 (39,400) 20,000
NPTCVS UK Community Renewal Fund –
Third Sector Grants Scheme 4,616 (4,616) -
Morel Trust fund 3,000 - 3,000
Clothworkers Foundation - Hwb y Gors 100,000 - 100,000
Ashley Family Foundation Fund - Hwb y
Gors 25,000 - 25,000
Welsh Government Energy Service - Gwrhyd
Solar & Wind Project 25,000 (16,793) 8,207
646,538 (239,997) 406,541
TOTAL FUNDS 1,162,317 (702,121) 460,196

Page 23

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General funds
Designated Asset Fund -
Capital
Designated Long Term
Investments
Restricted funds
Aggregate Levy Fund -
Capital
NPT CBC Rural Key Fund -
Capital
NPT Rural Key Fund -
Capital
Groundwork Wales -
Capital
Community Investment
Fund - Capital
The Energy Saving Trust -
Capital
Rural Development
Programme (RDP) -
Gwrhyd Solar
People and Places - The
National Lottery Community
Fund
Transforming Towns, Neath
Port Talbot County Borough
Council (NPTCBC)
Arts Council of Wales
Margaret Davies Charity
Moondance Foundation
Welsh Government’s
Landfill Disposal Tax
Communities Scheme –
Wales Council for
Voluntary Action (WCVA)
Western Valleys
Community Transport
Scheme, Community
Transport Association -
Welsh Government
Third Sector Resilience
Fund – Wales Council for
Voluntary Action (WCVA)
Community Facilities
Programme – Welsh
Government
Garfield Weston
Foundation
Awards for All - The
National Lottery Community
Fund		 At 1.1.21
£
141,405
227,326
102,001
470,732
50,000
5,550
36,340
1,214
13,050
1,735
-
-
-
-
-
-
-
-
-
-
-
-		 Prior
year
adjustment
£
64,475
-
-
64,475
(50,000)
(5,550)
(36,340)
(1,214)
(13,050)
(1,735)
-
-
-
-
-
-
-
-
-
-
-
-		 Net
movement
in funds
£
34,931
-
-
34,931
-
-
-
-
-
-
18,472
400,000
98,891
37,813
5,000
100,000
49,999
126,377
37,500
250,000
15,000
10,000		 Transfers
between
funds
£
(40,395)
407,698
-
367,303
-
-
-
-
-
-
(18,472)
(311,243)
-
(571)
-
-
(49,999)
(33,261)
-
(250,000)
-
-		 At
31.12.21
£
200,416
635,024
102,001
937,441
-
-
-
-
-
-
-
88,757
98,891
37,242
5,000
100,000
-
93,116
37,500
-
15,000
10,000

Page 24

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued
Welsh Government Energy
Service - - 15,000 (15,000) -
Restricted Hwb y Gors
capital fund - - - 311,243 311,243
107,889 (107,889) 1,164,052 (367,303) 796,749
TOTAL FUNDS 578,621 (43,414) 1,198,983 - 1,734,190

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Rural Development Programme (RDP) -
Gwrhyd Solar
People and Places - The National Lottery
Community Fund
Transforming Towns, Neath Port Talbot
County Borough Council (NPTCBC)
Arts Council of Wales
Margaret Davies Charity
Moondance Foundation
Welsh Government’s Landfill Disposal Tax
Communities Scheme – Wales Council for
Voluntary Action (WCVA)
Western Valleys Community Transport
Scheme, Community Transport Association
- Welsh Government
Third Sector Resilience Fund – Wales
Council for Voluntary Action (WCVA)
Lottery Community Fund - We are Energy
Warriors
Sustainable Development Fund
Community Facilities Programme – Welsh
Government
Garfield Weston Foundation
Virgin Media O2 Together Fund
Awards for All - The National Lottery
Community Fund
Rural Development Programe- Engagement
Officer
Welsh Government Energy Service
TOTAL FUNDS		 Incoming
resources
£
404,431
18,472
400,000
98,891
37,813
5,000
100,000
49,999
126,377
75,000
9,600
10,080
250,000
15,000
7,000
10,000
22,080
15,000
1,250,312
1,654,743		 Resources
expended
£
(369,500)
-
-
-
-
-
-
-
-
(37,500)
(9,600)
(10,080)
-
-
(7,000)
-
(22,080)
-
(86,260)
(455,760)		 Movement
in funds
£
34,931
18,472
400,000
98,891
37,813
5,000
100,000
49,999
126,377
37,500
-
-
250,000
15,000
-
10,000
-
15,000
1,164,052
1,198,983

Unrestricted & Designated Funds

Unrestricted General Funds as of 31st December 2022 are shown as £254,909. Trustees agree to hold 6 months running costs for the charity - this is based on the Annual Expenditure of £462,124 as shown in the accounts + 10% contingency.

Trustees agreed to designate £290,000 towards Hwb y Gors which aligns with the charity's objectives

Page 25

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AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Designated capital funds carried forward represent monies received towards capital expenditure,

Designated investment funds represent amounts held by the Charity in investments at the year end.

Restricted Funds

Details of specific Restricted funds are noted below:

-Transport, Learning Disabilities Fund: this is towards staff salaries and running costs for providing this community transport service

Ein Milltir Sqwar - Debrillitor: this will be located at Hwb y Gors for public use

Bus Services Support Grant (BSSG) NPT: to support community transport in NPT

Heritage Lottery Fund: funding towards heritage craft projects and lime render work at Hwb y Gors

NPTCVS Community Renewal Fund: funding towards craft projects at Hwb y Gors

Morel Trust: funding forward Hwb y Gors refurbishment

Clothworkers Foundation: funding forward Hwb y Gors refurbishment

Ashley Family Foundation: towards ceramics project and kitting out pottery studio at Hwb y Gors

Page 26

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Transfers between funds

Transfers between restricted funds

These transfers represent restricted funds that have been received and spent on the Hwb y Gors development.

The closing balance on the restricted fund of £1,051,491 represents all sources of capital funding the charity has received in respect of this development.

Transfers between restricted and unrestricted funds

These transfers represents the direct revenue spend on the Hwb y Gors development , together with management time in respect of this development, where the costs were reflected in general unrestricted funds.

20. RELATED PARTY DISCLOSURES

Awel y Gwrhyd (community wind farm)

Awel y Gwrhyd CIC is a 100% subsidiary of Awel Limited and both Awel Limited and Awel y Gwrhyd CIC are managed and administrated by Awel Aman Tawe.

Included within debtors is a balance of £41,186 (2021 £11,418) due from Awel y Gwrhyd CIC, this balance is made up of costs incurred by Awel Aman Tawe on behalf of Awel y Gwrhyd CIC due for recharge.

During the year Awel Aman Tawe received S106 Community Benefit and Common Land income from Awel y Gwrhyd CIC of £56,071 (2021 £53,147) and charged management and admin fees of £24,000 (2021 £20,800).

During the year, a donation of £100,000 was made to Awel Aman Tawe by Awel y Gwrhyd (2021 £125,000)

Awel Limited

Awel Aman Tawe holds share capital in Awel Limited (a cooperative and community benefit company) of £1 at the year end which represents <25% of the voting rights of Awel Limited. Interest receivable on this balance for 2022 is £3,670.

Included within other debtors is a balance of £38,041 (2021 £97,380 ) due from Awel Ltd, this balance is made up of various loans and recharges due from Awel Ltd at the year end.

During the year Awel Aman Tawe provided management and administration services to Awel Limited totalling £24,000 (2021 £20,800).

Other related parties

As agreed by Trustees, during the year Emily Hinshelwood, co-founder of the Charity and partner of Dan McCallum (company secretary) provided consultancy services on a freelance basis totalling £27,686 (2021:£17,671) to manage the Hwb y Gors renovation and development project.

Trustees in Awel Aman Tawe held shares in Awel Ltd totalling £4,805 and total interest receivable thereon for 2022 was £291.

Trustees in Awel Aman Tawe held shares in Egni totalling £24,466 and total interest receivable thereon for 2022 was £782.

Staff of Awel Aman Tawe held shares in Awel Ltd totalling £477 and received interest of £33.

Staff in Awel Aman Tawe held shares in Egni totalling £15,270 and received interest of £477.

Page 27

continued...

AWEL AMAN TAWE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

21. EGNI CYDWEITHREDOL

Awel Aman Tawe (AAT) holds shares totalling £10,081 in Egni Co-op (a cooperative and community benefit company) at the year end.

Egni Co-op (Egni) repaid shares totalling £89,919 to AAT during the year to 31/12/2022.

There are no staff employed by Egni and all administration and management faculties are provided by Awel Aman Tawe (AAT). AAT and Egni are related parties based on similar directors/trusteeships.

During the year AAT charged Egni a management & administration charge of £52,817 (2021: £14,560), plus project/ consultancy charges of £108,464 (2021: £nil).

These charges are a contribution towards AAT's costs of employing three solar development staff, the finance and administration team, and the Education Officer who works with schools that have Egni solar panels, and other schools as required.

Related party balances with Egni have been restructured during the year with some of the balance being converted to loans. Egni had previously provided loans to pay for the purchase and installation costs of solar panels (PV) and the purchase and installation of a Ground Source Heat Pump (GSHP) on behalf of AAT.

Interest is charged on a variable rate on the PV loan and will mirror the amount of income less depreciation incurred by AAT in each period. The interest on the GSHP loan is charged at 6%.

The balance owed by AAT to Egni as at 31/12/2022 in relation to the PV loan was £1,005,824. The balance owed by AAT to Egni as at 31/12/2022 in relation to the GSHP loan was £83,843.

The reason for using both Egni and AAT for FiT preregistrations and for each organisation to then own panels was to maximise FiT income to the project and make the overall scheme more financially viable. In effect, our larger installs are more viable and enabled us to do smaller installs on primary schools and community buildings. This was permitted under Ofgem rules to support community energy - not for profit legal entities were allowed to share a grid connection and both were eligible for FiT. Since March 2021, when the FiT income ended, all installs have been funded and installed by Egni Co-op alone.

During the year, £131,872 was generated from Awel Aman Tawe's solar panels.

From time to time Egni and AAT will also pay bills on behalf of the other organisation. These amounts are typically balanced at year end and repaid in the following period. The balance of these items at year end was £127,867 owed by Egni to AAT.

There was a further balance owed by Egni to AAT at year end of £175,635, in relation to recharges (including VAT) issued in FY22 but not paid until FY23.

The total net amounts owed by AAT to Egni as at 31/12/2022 was £786,157 (2021: £875,026).

Page 28

AWEL AMAN TAWE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
INCOME AND ENDOWMENTS
Donations and legacies
Donations
Other trading activities
Contracts and consultancy
Co-op Management
Solar panel revenue
Investment income
Investment income
Charitable activities
Grants
Total incoming resources
EXPENDITURE
Charitable activities
Project and employee costs
Rent, rates and water
Insurance
Light and heat
Telephone
Office costs
Photocopying
Marketing and advertising
Travel and motor
Professional fees
Subscriptions
Training costs
Repairs, maintenance & equipment
Depreciation
Finance charges
Interest payable-Solar panels
Interest on GSHP loan
Support costs
Management
Postage and stationery
Support costs
Accountancy fees
Total resources expended
Net income		 2022
£
-
117,653
100,817
131,872
350,342
10,620
801,355
1,162,317
366,879
687
13,317
5,405
1,662
6,560
340
2,384
18,149
23,204
5,132
3,487
23,883
68,025
2,838
138,916
5,296
686,164
-
15,957
702,121
460,196		 2021
£
500
41,102
56,160
114,772
212,034
8,798
1,433,411
1,654,743
211,545
1,140
14,390
7,198
1,600
10,779
580
915
7,948
43,614
3,537
140
19,480
81,070
3,940
36,981
-
444,857
54
10,849
455,760
1,198,983

This page does not form part of the statutory financial statements

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