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2022-03-31-accounts

Company no. 05326617 Charity no. 1116150

Wastesavers Charitable Trust Limited Report and Audited Financial Statements 31 March 2022

Wastesavers Charitable Trust Limited

Reference and administrative details

For theyear ended 31 March 2022
Company number 05326617
Charity number 1116150
Registered office and Wastesavers Resource Centre
operational address Esperanto Way
Lliswerry
Newport
NP19 0RD
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
David Mayer Chair
Roger Ayres Vice Chair
William Langsford Treasurer
Len Casley
Mark Esposito
Caroline Wynn
Key management Penelope Goodwin Chief Executive Officer
personnel Ian Syms Head of Operations
Janet Jones Finance Manager and Company Secretary
Alun Harries Charity Manager
Phil Hurst Marketing and Development Officer
Leane Rowe HR Manager
Ian Pearce PEAK Co-ordinator
Kris Dowding Recycling Manager
Thomas Belcher Regional Manager
Bankers Lloyds TSB Bank
42 Commercial Street
Newport
NP20 1WS
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

The trustees present their report and the audited financial statements for the year ended 31 March 2022. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 7 January 2005 and registered as a charity on 20 September 2006.

The organisation was established under a memorandum of association that established the objects and powers of the organisation and is governed under its articles of association.

The organisation looks to recruit new trustees with specific expertise who are able to support the objectives of the organisation. It does this by direct approach and general advertisement. Wastesavers inducts its trustees by encouraging them to spend time with each project the organisation is involved in to ensure they are fully aware of the activities it undertakes.

Training is available for trustees through WCVA, GAVO and ACEVO who provide a variety of courses for trustees throughout the year which are topical and informative. All trustees are encouraged to engage with at least one training session per year.

The Trustees and Executive Officers of the Company are listed on Page 1.

The Company comprises of six Trustees who are responsible for managing the affairs of the Company. Trustees are drawn from professional, Local Government, and local experience. The Trustees meet 11 times a year and consider risk management, development policy and strategy, monitoring the annual budget and the business plan and approving the annual financial statements. Trustees delegate the day-to-day management and implementation of the Company strategy and policy framework to the Officers of the Company.

No Trustees are remunerated over and above travel expenses. Wastesavers Charitable Trust owns the whole of Wastesavers Limited's share capital; 100 ordinary £1 shares.

The CEO is appointed by the Board of Trustees and is answerable to the Board on a monthly basis. Day to day organisational decision making is carried out by the CEO who also formulates strategic objectives in consultation with, and approved by, the Board of Trustees.

Wastesavers Charitable Trust looks to minimise risk to the organisation at all times. However, it is recognised that sometimes certain levels of risk are necessary for the organisation to progress. At all times risks are calculated before action is made, taking into account the organisation's vulnerability, consequences of inaction and potential benefits. All decisions on risk assessments are made at Board level. This is recorded in the Company’s risk register and reviewed at 6 monthly intervals or sooner if situation demands.

The Trustees are ultimately responsible for the Company’s system of internal financial control, which is designed to provide reasonable, but not absolute assurance regarding the safeguarding of assets, the maintenance of proper accounting records, the reliability of financial information and the management of risk.

2

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

The following mechanisms are used for effective internal financial control:

Wastesavers Charitable Trust is a member of CIWM, Reuse Network, ACEVO, GAVO and WCVA all of whom provide advice and guidance on the effective management of the charity and its operational undertakings.

Remuneration of key management personnel is brought to the attention of, and approved by, the Remuneration Committee which is made up of key members of the Board including the treasurer and chairman. When setting pay structures the local government NJC scales are considered along with industry benchmarking to ensure remuneration is appropriate and fair.

Objectives and activities

  1. The relief of poverty by the provision of renovated furniture and other household accessories for residents in necessitous circumstances in the South East Wales area.

  2. The advancement of education in respect of the environmental aspects of, and need for, recycling.

  3. The advancement of education in respect of vocational skills, numeracy and literacy skills and practical skills of benefit to the community (to the extent that such objects are exclusively charitable).

Wastesavers Charitable Trust operates projects in three broad areas that work to further the objectives of the Charity:

  1. Reuse. Our flagship Reuse Centre in Maindee, Newport, and Reuse Shops at HWRCs in Newport, Llantrisant, Treherbert, Pentrebach, Roseheyworth, Cardiff and New Inn. These projects take a variety of household items donated by the general public and business including furniture, IT, electrical items and general bric and brac and makes them available to the general public at low prices. We deliver social programmes to reduce social isolation, increase digital awareness and improve employability as well as a comprehensive volunteering programme to support people in gaining additional skills and experiences and to facilitate social interaction.

  2. Education Project. Using a purpose-built education room at Wastesavers Resource Centre, Wastesavers works to educate primary school children about the importance of ‘reduce, reuse and recycle’. The lessons are planned to ensure all children are not only enthused by the project but are aware of its environmental benefits. The education project typically hosts between 6 and 12 visits per term from schools across South Wales but primarily from Newport.

3

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

  1. PEAK. Alternative education provision. Wastesavers works with schools, pupil referral units, the youth offending team, social services, and local authorities in South East Wales, specifically Newport and Torfaen, to take young people who are finding it difficult in mainstream education. The young people then work towards gaining basic/essential skills including plumbing, carpentry, bike repair, cookery, photography and Art and Design. This project employs 3 staff members and typically works with up to 12 young people per day delivering its objectives. Unfortunately owing to the Covid-19 restrictions PEAK has been closed for most of the year and its staff placed on furlough.

The charity also runs a trading arm, Wastesavers Limited. Wastesavers Limited delivers three key services which generates an income for the charity and furthering its aims and objectives. They occupy a building owned by the charity and pay it rent to cover the use of this space. From this location they deliver waste and recycling collection services to divert as much material from landfill as possible.

  1. Kerbside Recycling services for the city of Newport. They hold a contract to deliver the kerbside recycling service including collection and reprocessing source segregated recyclate from all 74,000 houses and flats in Newport. This contract expires in 2024-25.

  2. Commercial Recycling Services for Newport, Cardiff, Monmouthshire and Torfaen, collecting source segregated recycling from businesses using wheeled bins and reusable sacks.

  3. Commercial Reprocessing Services – providing reprocessing services to local authorities and businesses in the local area on an ad hoc basis.

Last year this equated to 20,391 tonnes of recyclables collected at the kerbside and an additional 1,469 tonnes of material brought in from commercial businesses and reprocessing commercially on site. Wastesavers Limited employs 83 members of staff and represent the largest proportion of income and expenditure for the group.

The charity measures its success by the collection and analysis of Key Performance Indicators at its Management Review Meetings, Board Meetings and contract meetings. These key indicators include tonnages diverted from landfill, number of students trained, the number of schools who visit the education room and the number of volunteer hours contributed. Health and safety and environmental performance are also monitored and reported against.

On an annual basis the charity also reviews the additional value that reusing furniture and IT gives to society and the numbers of low-income families helped with the provision of low-cost furniture.

The charity is aware of and has reviewed the Charity Commission guidance on public benefit, in particular the legal requirements of charities working to relieve poverty and has taken it into account when reporting on the work the charity has done in the last 12 months. This is covered throughout this report.

Acheivements and performance

The organisation has been maintained as an incorporated charity with shareholdings in Wastesavers Limited.

4

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

Last year we had the following objectives:

Despite restrictions due to Covid-19, I am pleased to say that Wastesavers Charitable Trust has achieved all these objectives.

Overview

This year the organisation has dealt with the continuing impact of the Covid-19 pandemic. Despite a relaxation in restrictions Covid-19 has continued to affect all aspects of our business from managing the health and wellbeing of our workforce to dealing with an increase in tonnages placed out for collection at the kerbside. However, all our departments have continued to operate and deliver their services with the charity returning to near normal service after months of furlough.

Our CEO was on maternity leave during much of 2021-22 passing responsiblity to the Head of Operations. During this time the group continued its maintenance of ISO 9001, 14001 and 45001 standards and continued to deliver its aims and objectives.

Reuse

All staff returned from furlough during April and May 2021, with the phased reopening of all retail sites. Despite the restrictions still in place due to Covid-19 and the subdued retail market we continued to grow our reuse offering.

In July 2021 we opened the long awaited Reuse Centre in Maindee. The centre inhabits a building bought and renovated by the charity over the previous 12 months. It now inhabits our IT reuse department, furniture reuse shop, and as part of its community commitment, gives space to Maindee Makerspace and their operations. In the coming 12 months it is hoped that a Nappy Library and Repair Café will also be housed here.

The expansion of our Reuse Shops at recycling centres continued with the opening of The Cabin in Lamby Way, The Den in Roseheyworth and the Steelhouse in New Inn. We also continued working on plans with Rhondda Cynon Taff Council to open a hybrid Reuse Shop in Aberdare High Street which we hope will complete in Summer 2022. We also submitted our bid, which was approved (subject to negotiations) to run another Reuse Shop in Penallta, Caerphilly.

In total we employed 37 staff, an increase of 20 people on our 2020-21 employment figures. We also worked with 71 volunteers who contributed 14,184 hours, working to reuse and recycle furniture, IT, electrical equipment and household bric a brac and helping us to divert a massive 621 tonnes of reusable items from landfill. This is a labour value of £126,379 at minimum wage!

5

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

PEAK

This has been another difficult year for PEAK with staff flexi furloughed until September when the schools began to place students. Our return to the classroom was slow, but between September 21 to March 22 we actively engaged 27 students, 14 pupils from Newport and 13 from Torfaen. Commitment from schools has been difficult during this period and alternative options for PEAK are being explored, including diversification.

Funding of £22k has been obtained from Torfaen County Borough Council to develop and open a repair café for Torfaen during 2022. As a result we plan to reduce PEAKs opening days from 5 days a week to 3 days to accommodate the reduction in student numbers and allow staff to work on this alternative project.

Education

The long overdue redevelopment of the education room took a step forward this year as we engaged a designer and began developing our ideas for the interactive workstations that will replace the previous ‘pods’. The wall has been removed and ceiling repaired and we now await installation. Funding has already been received for a proportion of this project with the remaining coming from industry sponsorship and our own funds. It is anticipated that this will open in Autumn 2022.

Kerbside recycling

During the year our kerbside recycling service diverted 20,391 tonnes of recyclable material from disposal. This was 7.8% lower than 2020-21 as we saw the entertainment industry reopen and people’s consumer habits change; after 12 months inside people started to eat out again (reducing the food waste and packaging collected) and head back to the pub (reducing the glass and cans collected). However, this is still 774 tonnes more than collected in 2019-20.

Material prices began to recover as income began to be received for cardboard. Aluminium and plastic began to gain in value in part due to energy crisis and war in Ukraine seen in the latter part of the year.

A covid outbreak at the start of the year saw our services disrupted as staff isolated but this was soon brought under control. The outbreak was brought into the company from a number of sources but by careful management and putting teams in ‘bubbles’ this outbreak was minimised.

During Summer 2021 we came under increasing pressure due to the HGV driver shortage. Everyone with an HGV licence was sent a letter from government encouraging them to use their licence. Our drivers were targeted by local recruiters and we lost a number to competitors paying higher wages and better benefits. This included 3 staff who left to work for Newport City Council. Our agency fees increased dramatically as HGV drivers demanded higher wages and the local authority agreed to support us with any spare staff they have available and have agreed to wage parity moving forward. The situation has gradually improved and while HGV drivers are still demanding higher wages there is no longer the daily pressure of finding staff to drive our vehicle. An agreement was made with Newport City Council that the cost of living allowance agreed between trade unions and their members within the council, would also be passed onto Wastesavers staff.

The way we communicate with our staff changed this year as we introduced the first Kerbside Matters publication to replace kerbside staff meetings. This enabled us to communicate important issues to our staff, including health and safety and environmental issues, and also to inform on the work the charity is doing. This has been positively received.

6

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

Commercial recycling and responsibility

Covid-19 continued to affect our commercial recycling operations as, despite restrictions easing, some of our clients were not able to reopen. However, many resumed their recycling collections and despite a drop in tonnage and income from 2019-20, 945 tonnes were diverted from landfill, an increase of 38.6% from last year.

524 tonnes were reprocessed for neighbouring local authorities a 19.4% increase on 2020-21.

Financial review

Income from the Kerbside Recycling service delivered for Newport residents and from selling recycled material from its kerbside and commercial recycling departments make up the largest proportion of overall income for the group. However, the kerbside project is run at cost price and therefore no profit is generated from this contract. The limited company does engage in profit making activities through its commercial recycling department and from commercial reprocessing. These projects, along with rent paid by the kerbside project for the charity owned building generated profits of £60k for the charity.

Wastesavers Limited; kerbside recycling, commercial recycling, and training

Income from sale of materials collected from kerbside and commercial recycling collections was £1,148k in 2021-22 up £424k from 2020-21 due to rising demand, and therefore price of cardboard and the gain in value of aluminium and plastic caused by the energy crises and war in Ukraine experienced in the latter part of the year.

Both income and expenditure for the recycling departments were below last year’s figures as Newport Council's covid-19 payments reduced and furlough funding ended (applicable to our commercial recycling department). Total income was £4,740k compared to last year of £4,775k - £35K less.

Expenditure on wages was £50K more than in 2020-21 (£2,640k in 2021-22 compared to £2,590k in 2020-21) but the proportion of agency costs reduced from 32.5% of costs in 2020-21 to 28% of costs in 2021-22 demonstrating the formal move towards driver plus 2 in our operating plan and the slight easing of our staffing pressures.

Wastesavers Charitable Trust Limited; reuse

During 2021-22, we opened an additional three tip shops in Roseheyworth, Blaenau Gwent; Lamby Way, Cardiff; and New Inn, Torfaen. Additional funding of £99k was received from Torfaen County Borough Council (CBC) to part fund wages for two years.

In total the tip shops generated income of £449k up from last year’s income of £71k – which was generated despite many of the shops being closed for most of the trading period.

The Reuse centre generated £131k from furniture and £83k from computer reuse up from £48k and £59k respectively for 2020-21.

Funding of £110k has already been received and allocated to the Aberdare Reuse Centre to be opened in Summer 2022.

PEAK

Student income from PEAK started improving from a low of £20k in 2020-21 to £41k in 2021-22 however, it is still half the income generated in 2019-20 and demonstrates the continuing effect of covid-19 on schools.

7

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

In addition to this work, PEAK also received £22k of advance funding from Torfaen CBC to pay for the opening of a repair café in the authority in 2022.

Overall

At the end of the reporting period 2021-22, the Charity, incorporating its limited trading arm made a loss of £334,160 while the Limited company on its own made a profit of £58,175. However, it should be noted that the group accounts include the depreciation of assets which we received funding for in a prior period. This income will not show in these accounts. This compares to last year where the charity reported a profit of £135,016, however, this included restricted funding awaiting spend relating to the reuse centre. Other points to note are as follows:

Fixed assets

In total the group’s fixed assets stand at £2.78m with £754k liabilities due within 12 months.

Our cash in the bank was at £1,208k at the end of the year, a reduction of £628k on 2020-21 due to the development and build of the Reuse Centre and creation of this capital asset.

Debt

Our debt included new loans of £74,272 which related to the finance agreements in place for our insurance policies.

Reserves policy

It is our policy to put aside the equivalent of three months wages for the group. This is currently set at £470,000 and is to cover costs associated with a cease of contract or problems with a restriction in cashflow. At year end there was a balance of £724,429 held in unrestricted net current assets, an increase of £29k on 2020-21.

Fundraising

Wastesavers does not carry out any fundraising activities and does not have any contracts with professional fundraisers.

Wastesavers is not a member of any voluntary fundraising schemes.

There are no fundraising activities to be monitored.

Wastesavers has had no complaints about fundraising as no fundraising activities were undertaken. There is however, a formal complaints procedure as part of its accredited and audited management system, which is regularly reviewed by the senior management team.

Wastesavers does not carry out any fundraising activities that would contravene GDPR regulations or would cause unreasonable intrusion into a person’s privacy, particularly those that are vulnerable. It does not use unreasonably persistent approaches or undue pressure to give as it does not carry out any fundraising activities.

Plans for future periods

It is hoped that 2022-23 will see the first year of Covid-19 recovery with the end of restrictions on trading and working life. It is hoped that pressure of recruitment eases in light of our movement out of the pandemic and public confidence returns in the form of footfall within our shops. This is likely to result in a drop in tonnages available to collect at the kerbside, however, the level of this impact will remain to be seen.

8

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

Our plans remain ambitious with developments across our charity to further our reach and deliver on our aims and objectives. Specifically;

Going concern statement

The trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons:

The trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts, as detailed in note 1(c) to the financial statements.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. 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 charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

9

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2022

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 6 October 2022 and signed on their behalf by

W Langsford

William Langsford, Treasurer

10

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

Opinion

We have audited the financial statements of Wastesavers Charitable Trust Limited (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, consolidated and parent's balance sheets, consolidated statement of cash flows and the related 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity 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 charity'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 group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity 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.

11

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charity and their 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 the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

12

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

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 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

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-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

13

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

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 charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 10 October 2022

Alison Godfrey FCA (Senior Statutory Auditor) For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

14

Wastesavers Charitable Trust Limited

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Note
Income from:
Donations and legacies
3
Charitable activities
Reuse
4
Recycling
5
Education
6
Investments
Total income
Expenditure on:
Charitable activities
Reuse
Recycling
Education
Total expenditure
8
Net income / (expenditure)
Transfers between funds
Net movement in funds
9
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
32,000
61,779
99,503
719,581
7,931
4,259,870
-
41,332
-
95
139,434
5,082,657
107,422
616,975
473,469
4,276,642
-
81,743
580,891
4,975,360
(441,457)
107,297
-
-
(441,457)
107,297
3,239,180
839,977
2,797,723
947,274		 2022
Total
£
93,779
819,084
4,267,801
41,332
95
5,222,091
724,397
4,750,111
81,743
5,556,251
(334,160)
-
(334,160)
4,079,157
3,744,997		 2021
Total
£
256,381
801,236
4,417,781
20,352
226
5,495,976
482,994
4,796,875
81,091
5,360,960
135,016
-
135,016
3,944,141
4,079,157

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the accounts.

15

Wastesavers Charitable Trust Limited

Consolidated balance sheets

As at 31 March 2022

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
16
Net current assets
Total assets less current liabilities
17
Net assets
19
Funds
20
Restricted funds
Unrestricted funds
Total charity funds
Creditors: amounts falling due after more
than 1 year		 The group
2022
£
2,780,910
-
2,780,910
25,580
741,852
1,208,008
1,975,440
753,831
1,221,609
4,002,519
257,522
3,744,997
2,797,723
947,274
3,744,997		 The group The charity
2021
2022
£
£
2,920,897
1,044,323
-
100
2,920,897
1,044,423
12,776
25,580
723,233
46,676
1,836,506
534,301
2,572,515
606,557
963,848
42,308
1,608,667
564,249
4,529,564
1,608,672
450,407
-
4,079,157
1,608,672
3,239,180
1,235,332
839,977
373,340
4,079,157
1,608,672		 The charity
2021
£
671,824
100
671,924
12,776
35,682
1,078,937
1,127,395
263,840
863,555
1,535,479
-
1,535,479
1,211,251
324,228
1,535,479

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 6 October 2022 and signed on their behalf by

W Langsford

William Langsford - Treasurer

16

Wastesavers Charitable Trust Limited

Consolidated statement of cash flows

For the year ended 31 March 2022

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation
Profit on the sale of fixed assets
Interest received
Interest paid
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Interest received
Proceeds from the sale of property, plant and equipment
Payments for plant, property and equipment
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Cash inflows from new borrowing
Payment of finance lease liabilities
Net cash provided in / (used in) financing activities
Increase / (decrease) 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
Analysis of changes in net debt:
£
£
£
Cash
1,836,506
-
(185,162)
185,162
-
(450,407)
-
-
Loans falling due within 1 year -
-
(74,272)
1,200,937
185,162
(74,272)
Brought
forward
New loans
Obligations under finance
leases within 1 year
Obligations under finance
leases after 1 year
Cash
flows
(628,498)		 2022
£
(334,160)
646,223
(2,200)
(95)
21,798
(12,804)
(18,619)
(292,012)
8,131
95
2,200
(506,236)
(503,941)
74,272
(206,960)
(132,688)
(628,498)
1,836,506
1,208,008
£
-
(192,885)
192,885
-
-
Non-cash
movements		 2021
£
135,016
635,348
-
(226)
29,542
(2,357)
448,289
148,785
1,394,397
226
-
(317,084)
(316,858)
-
(210,389)
(210,389)
867,150
969,356
1,836,506
£
1,208,008
(192,885)
(257,522)
(74,272)
Carried
forward
683,329

17

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Wastesavers Charitable Trust Limited 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 notes.

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned (controlled) subsidiary, Wastesavers Limited, on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the COVID-19 pandemic continues to have a profound impact on the global economy, and has continued to affect the charity. The trustees have considered the impact of this issue on the charitable company’s current and future financial position.

Although Reuse and education services have been disrupted, the charity has been able to return to a trading position, albeit at lower levels to that seen in previous years. The PEAK project utilised the government’s Job Retention Scheme Funding for the first two quarters of the year ensuring that all staff were paid 100% of salaries as trading and schools returned to normal service.

Income from material sales for the kerbside recycling service began to return to pre pandemic levels as income for cardboard and plastic improved. Tonnages began to return to pre-pandemic levels as all restrictions were removed. Commercial Recycling Services, which were largely suspended, began to come back online as businesses reopened and revenue fees for services rendered increased. Due to a slow return of these businesses, Commercial Recycling staff were seconded to assist with other projects thereby reducing costs and mitigating any loss in income.

As the charity holds unrestricted, general reserves of £373,340 (group: £947,274) and a cash balance of £534,301 (group: £1,208,008), the trustees consider that both the charity, and the group as a whole, have sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

18

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

d) Income

Income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charitable company 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.

Income generated from the supply of goods or services is included in the statement of financial activities in the period in which the supply is made. Income received in advance of provision of reuse or training services is deferred until criteria for income recognition are met.

e) Donated goods for resale

Donated goods for resale are recognised as income at their fair value upon receipt, which is deemed to be the expected proceeds from sale less the expected costs of sale. Any difference in the resale value is charged or credited to the statement of financial activities during the year.

f) Interest receivable

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

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charitable company. Designated funds are unrestricted funds of the charitable company which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charitable company's work or for specific projects being undertaken by the charitable company.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

19

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued) i) Allocation of support and governance costs

vities on the following basis:
2022 2021
Reuse 16.3% 12.4%
Recycling 81.5% 85.3%
Education 2.2% 2.3%

j) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Land and buildings 25 years straight line Motor vehicles 5 and 7 years straight line Plant and machinery 7 years straight line Computer and office equipment 4 years straight line Leasehold land improvements 5 years straight line

Leasehold land is not depreciated.

Items of equipment are capitalised where the purchase price exceeds £10,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

k) Investment in subsidiary undertakings

The charitable company has one wholly owned subsidiary, Wastesavers Limited, (registered company number 03842840). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses in the charitable company's accounts.

l) Stock

Purchased stock is included at the lower of cost or net realisable value. Donated items of stock for resale are recognised at fair value which is the expected proceeds from sale less any expected costs of sale. A value for IT stock is brought into the accounts once the item is ready for sale either on-line or in the Reuse shop.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash 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.

20

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

o) Creditors

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Financial instruments

The group and charitable company only have 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 except for bank loans which are subsequently recognised at amortised cost using the effective interest method.

q) Redundancy payments

r) Pension costs

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 under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

s) Finance leases

Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charge. Finance charges are written off to the statement of financial activities over the period of the lease so as to produce a constant periodic rate of charge on the remaining balance of the liability.

t) Critical accounting judgements and key sources of estimation or uncertainty

In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation or uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1j to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

21

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Reuse
Recycling
Education
Investments
Total income
Expenditure on:
Charitable activities
Reuse
Recycling
Education
Total expenditure
Transfers between funds
3.
Donations and legacies
Donations and gift aid
COVID grants (including CJRS)
Kickstart grant
Other grants
Net income / (expenditure)
Net movement in funds		 Restricted
£
£
-
256,381
591,145
210,091
56,824
4,360,957
-
20,352
-
226
647,969
4,848,007
74,696
408,298
410,378
4,386,497
-
81,091
485,074
4,875,886
162,895
(27,879)
(845)
845
162,050
(27,034)
2022
Restricted Unrestricted
Total
£
£
£
-
6,970
6,970
-
20,347
20,347
-
25,949
25,949
32,000
8,513
40,513
32,000
61,779
93,779
Unrestricted		 2021
Total
£
256,381
801,236
4,417,781
20,352
226
5,495,976
482,994
4,796,875
81,091
5,360,960
135,016
-
135,016
2021
Total
£
5,039
251,342
-
-
256,381

All donations and legacies received in the prior year were unrestricted.

22

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

4. Reuse

Reuse
Grants - revenue
Computer recycling
Furniture shop
Tip shops
Other income
Prior period comparative
Grants - revenue
Grants - capital
Computer recycling
Furniture shop
Tip shops
Other income		 Unrestricted
£
£
99,503
28,491
-
83,653
-
131,168
-
448,694
-
27,575
99,503
719,581
Unrestricted
£
£
110,000
21,508
481,145
-
-
59,051
-
48,409
-
70,522
-
10,601
591,145
210,091
Restricted
Restricted		 2022
Total
£
127,994
83,653
131,168
448,694
27,575
819,084
2021
Total
£
131,508
481,145
59,051
48,409
70,522
10,601
801,236

5. Recycling

Material sales
Newport City Council:
Recycling payment
COVID funding
Grants - capital
Flats recycling
Commercial recycling income
Other income
Reimbursement for recycling
consumables		 Restricted Unrestricted
£
£
-
1,147,794
-
2,201,092
-
345,343
-
405,231
7,931
-
-
11,614
-
141,409
-
7,387
7,931
4,259,870		 2022
Total
£
1,147,794
2,201,092
345,343
405,231
7,931
11,614
141,409
7,387
4,267,801

23

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

5.
Recycling (continued)
Prior period comparative
Material sales
Newport City Council:
Recycling payment
COVID funding
Grants - capital
Flats recycling
Commercial recycling income
Other income
Reimbursement for recycling
consumables		 Restricted Unrestricted
£
£
-
724,250
-
2,531,789
-
379,586
-
508,432
56,824
-
-
43,352
-
164,084
-
9,464
56,824
4,360,957		 2021
Total
£
724,250
2,531,789
379,586
508,432
56,824
43,352
164,084
9,464
4,417,781
6.
Education
Student income		 Restricted
£
£
-
41,332
Unrestricted		 2022
Total
£
41,332		 2021
Total
£
20,352

All income from education in the prior period was unrestricted.

7. Government grants

The charitable company receives government grants, defined as grant funding from Newport City Council, Torfaen County Borough Council, the Coronavirus Job Retention Scheme and the Welsh Government, to fund charitable activities. The total value of such grants in the period ending 31 March 2022 was £175,730 (2021: £804,503). There are no unfulfilled conditions or contingencies attaching to these grants.

24

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

8. Total expenditure

Total expenditure
Staff costs (note 10)
Other staff costs
Service delivery costs
Development and consultancy
Premises costs
Administrative costs
Insurance
Audit and accountancy
Bad debts
Interest and charges
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Reuse
£
529,272
18,948
32,676
15,211
43,702
35,733
11,517
4,887
83
6,990
-
699,019
25,378
724,397		 Recycling
£
2,640,474
67,764
1,051,333
2,297
105,176
7,657
137,967
7,641
2,546
21,798
578,850
4,623,503
126,608
4,750,111		 Education
£
70,429
191
2,731
55
59
3,762
1,139
-
-
-
-
78,366
3,377
81,743		 Support and
governance
£
75,719
2,003
121
506
-
2,671
-
6,970
-
-
67,373
155,363
(155,363)
-		 2022 Total
£
3,315,894
88,906
1,086,861
18,069
148,937
49,823
150,623
19,498
2,629
28,788
646,223
5,556,251
-
5,556,251

Total governance costs were £13,475.

25

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

8.
Total expenditure (continued)
Prior period comparative
Staff costs (note 10)
Other staff costs
Service delivery costs
Development and consultancy
Premises costs
Administrative costs
Insurance
Audit and accountancy
Bad debts
Interest and charges
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Reuse
£
375,133
7,333
17,964
7,714
26,520
14,842
8,629
1,191
-
6,271
-
465,597
17,397
482,994		 Recycling
£
2,590,634
60,595
1,154,134
11,158
98,268
10,264
126,974
6,713
498
29,542
587,953
4,676,733
120,142
4,796,875		 Education
£
70,817
220
2,234
1,835
154
1,376
1,171
-
-
-
-
77,807
3,284
81,091		 Support and
governance
£
81,654
1,089
240
2,141
-
612
1,379
6,313
-
-
47,395
140,823
(140,823)
-		 2021 Total
£
3,118,238
69,237
1,174,572
22,848
124,942
27,094
138,153
14,217
498
35,813
635,348
5,360,960
-
5,360,960

Total governance costs were £12,850.

26

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

9. Net movement in funds

This is stated after charging / (crediting):

Net movement in funds
This is stated after charging / (crediting):
2022 2021
£ £
Interest payable 21,798 29,542
Depreciation
Owned assets 297,510 272,023
Leased assets 348,713 363,325
(Profit) / loss on the sale of fixed assets (2,200) Nil
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses Nil Nil
Auditors' remuneration:
Statutory audit 13,475 12,850
Other services Nil Nil

Trustees were not reimbursed expenses during the year (2021: nil).

10. Staff costs and numbers

Staff costs for the group were as follows:

Salaries and wages
Social security costs
Pension contributions
Agency staff		 2022
£
2,261,608
172,119
139,539
742,628
3,315,894		 2021
£
1,995,123
151,007
130,897
841,211
3,118,238

No employee earned more than £60,000 during the year.

The key management personnel of the group comprise the Chief Executive Officer, Finance Manager, Recycling and Health and Safety Manager, HR Manager, Marketing and Development Officer, Regional Manager who are employed by Wastesavers Limited, and the PEAK Coordinator, Charity Manager and Volunteer and Reuse Manager who are employed by Wastesavers Charitable Trust Limited. The total employee benefits of the key management personnel of the group, including employers' national insurance, were £304,073 (2021: £300,963).

Average head count 2022
No.
120		 2021
No.
100

27

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

11. Tangible fixed assets
The group
£
Cost
At 1 April 2021
316,765
Additions in year
439,874
Disposals in year
-
Transfers
(756,639)
At 31 March 2022
-
Depreciation
At 1 April 2021
-
Charge for the year
-
Disposals in year
-
At 31 March 2022
-
Net book value
At 31 March 2022
-
At 31 March 2021
316,765
Assets under
construction		 Land and
buildings
£
1,617,552
-
-
756,639
2,374,191
1,298,613
60,328
-
1,358,941
1,015,250
318,939		 Leasehold
land
£
121,281
-
-
-
121,281
-
-
-
-
121,281
121,281		 Plant and
machinery
£
917,211
-
-
-
917,211
479,947
109,128
-
589,075
328,136
437,264		 Motor
vehicles
£
3,466,580
66,362
-
-
3,532,942
2,229,088
449,036
-
2,678,124
854,818
1,237,492		 Office
equipment
£
27,564
-
-
-
27,564
23,063
3,875
-
26,938
626
4,501		 £
614,498
-
(10,557)
-
603,941
129,843
23,856
(10,557)
143,142
460,799
484,655
Leasehold
improvements		 Total
£
7,081,451
506,236
(10,557)
-
7,577,130
4,160,554
646,223
(10,557)
4,796,220
2,780,910
2,920,897

Included within the net book value is £423,019 (2021: £771,789) relating to assets held under finance leases. The depreciation charged to the statement of financial activities in respect of these assets was £348,713 (2021: £363,325).

28

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

11. Tangible fixed assets (continued)

The charity
Cost
At 1 April 2021
Additions in year
Transfers
Disposals in year
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals in year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 £
316,765
439,874
(756,639)
-
-
-
-
-
-
-
316,765
Assets under
construction		 Land and
buildings
£
1,617,552
-
756,639
-
2,374,191
1,298,612
60,329
-
1,358,941
1,015,250
318,940		 Plant and
machinery
£
1,898
-
-
-
1,898
1,898
-
-
1,898
-
-		 Motor
vehicles
£
49,310
-
-
-
49,310
13,191
7,046
-
20,237
29,073
36,119		 £
10,557
-
-
(10,557)
-
10,557
-
(10,557)
-
-
-
Leasehold
improvements		 Total
£
1,996,082
439,874
-
(10,557)
2,425,399
1,324,258
67,375
(10,557)
1,381,076
1,044,323
671,824

29

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

12. Subsidiary undertakings

Wastesavers Limited

The charitable company owns the whole of the issued share capital (100 ordinary £1 shares) of Wastesavers Limited, a company registered in England and Wales. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are donated to the charitable company. A summary of the results of the subsidiary is shown below:

2022 2021
£ £
Turnover 4,739,573 4,774,531
Cost of sales (448,143) (634,759)
Gross profit 4,291,430 4,139,772
Administrative expenses (4,213,700) (4,071,107)
Operating profit 77,730 68,665
Other income 2,200 -
Interest receivable 43 101
Interest payable (21,798) (29,542)
Profit on ordinary activities 58,175 39,224
Corporation tax - -
Profit for financial year 58,175 39,224
The aggregate of the assets, liabilities and funds was:
2022 2021
£ £
Assets 3,112,939 3,695,890
Liabilities (2,538,906) (3,180,032)
Funds 574,033 515,858
Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
2022 2021
£ £
Gross income 1,005,945 1,133,573
Results for the year 73,193 449,350

13. Parent charity

30

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

14. Stock

14. Stock
2022
2021
£
£
Donated goods for resale
25,580
12,776
15. Debtors
2022
2021
£
£
Trade debtors
388,859
336,641
Prepayments
125,939
46,574
Accrued income
227,054
340,018
Amounts owed from subsidiary
-
-
VAT
-
-
741,852
723,233
16. Creditors: amounts due within 1 year
2022
2021
£
£
Trade creditors
116,313
174,344
Other taxation and social security
178,039
289,387
Accruals
84,762
219,011
Loans
74,272
-
Other creditors
41,645
38,885
Deferred income (see note 22)
65,915
57,059
Obligations under finance leases
192,885
185,162
753,831
963,848
The group
The group
The group		 2022
2021
£
£
25,580
12,776
2022
2021
£
£
36,820
15,276
1,158
116
1,228
18,602
653
1,688
6,817
-
46,676
35,682
2022
2021
£
£
3,335
4,665
6,481
99,187
29,017
157,279
-
-
3,475
2,709
-
-
-
-
42,308
263,840
The charity
The charity
The charity
263,840

The unsecured loan, the aggregate total of which amounts to £123,832, is repayable in ten monthly installments of £13,002 commencing 20 December 2021. Total interest repayable over the lifetime of the loan is £6,237 (5%).

17. Creditors: amounts due after 1 year

Obligations under finance leases 2022
2021
£
£
257,522
450,407
The group		 2022
2021
£
£
-
-
The charity

31

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

18. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charitable company's trading subsidiary, Wastesavers Limited, donates available profits to the charitable company. Any taxable profits retained in the subsidiary company are chargeable to corporation tax.

19. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Creditors: amounts falling due within 1 year
Net assets at 31 March 2022
Prior period comparative
Tangible fixed assets
Current assets
Creditors: amounts falling due within 1 year
Net assets at 31 March 2021
Creditors: amounts falling due after more than 1
year
Creditors: amounts falling due after more than 1
year		 £
2,300,543
497,180
-
-
2,797,723
£
2,325,729
913,451
-
-
3,239,180
Restricted
funds
Restricted
funds		 £
480,367
1,478,260
(753,831)
(257,522)
947,274
£
595,168
1,659,064
(963,848)
(450,407)
839,977
Unrestricted
funds
Unrestricted
funds		 Total funds
£
2,780,910
1,975,440
(753,831)
(257,522)
3,744,997
Total funds
£
2,920,897
2,572,515
(963,848)
(450,407)
4,079,157

32

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds

At 1 April
2021
£
Restricted funds
WEFO (EDRF Obj 2)
149,557
Welsh Assembly
169,384
Cardiff City Council
47,700
Newport City Council
734,610
Rhondda Cynon Taf Council
110,000
-
-
Education Suite
-
Leasehold land (NCC)
121,281
NCC flats recycling
299,680
Wastesavers Ltd capital fund
1,606,968
Total restricted funds
3,239,180
General funds
839,977
Total unrestricted funds
839,977
Total funds
4,079,157
Unrestricted funds
Torfaen County Council -
New Inn Salaries
Torfaen County Council -
Reuse Coordinator		 Income
£
-
-
-
-
-
99,503
22,000
10,000
-
-
7,931
139,434
5,082,657
5,082,657
5,222,091		 £
(21,513)
(18,638)
(2,942)
(33,491)
-
(30,838)
-
-
-
(82,900)
(390,569)
(580,891)
(4,975,360)
(4,975,360)
(5,556,251)
Expenditure		 £
£
-
128,044
-
150,746
-
44,758
-
701,119
-
110,000
-
68,665
-
22,000
-
10,000
-
121,281
-
216,780
-
1,224,330
-
2,797,723
-
947,274
-
947,274
-
3,744,997
At 31 March
2022
Transfers
between
funds		 £
£
-
128,044
-
150,746
-
44,758
-
701,119
-
110,000
-
68,665
-
22,000
-
10,000
-
121,281
-
216,780
-
1,224,330
-
2,797,723
-
947,274
-
947,274
-
3,744,997
At 31 March
2022
Transfers
between
funds
2,797,723
947,274
947,274
3,744,997

Purposes of restricted funds WEFO and Welsh Assembly funds

The WEFO and Welsh Assembly funds are capital restricted funds representing the Wastesavers Resource Centre. The funds will be reduced each year by the annual depreciation charge of the related fixed assets, along with any impairment losses incurred.

Cardiff City Council

Funding to support the establishment of 2 sites in Cardiff, Lamby Way (opened 2021) and Bessemer Road (CCC made the decision not to continue with this site).

Newport City Council

An award of funding in relation to improving reuse infrastructure in Newport.

Part of the grant from Newport City Council, £25,000, was allocated for the purchase of a new Reuse vehicle of which £845 remains.

Another part of the grant received from Newport City Council, £25,000, was allocated towards the refurbishment of the classroom at Head Office. The pandemic held up works until 2022, works have now commenced and should be completed this financial year.

33

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds (continued)

Rhondda Cynon Taf Council

Rhondda Cynon Taff received funding of £110,000 from Welsh Government towards setting up a new Reuse site at Aberdare. This has been delayed although indications are that the site will open towards the end of this financial year.

Torfaen County Council - New Inn Salaries

TCBC also received funding which was passed to us to subsidise salaries at New Inn to March 2023. The balance at financial year 2021/22 was £68,665.

Torfaen County Council - Reuse Coordinator

Funding from Torfaen County Council towards the setting up and running of a Repair Café in Pontypool, Torfaen.

Education Suite

Donations to fund the refurbishment of the education suite at Head Office.

Leasehold land

A grant was received from the Welsh Government to enable Wastesavers Ltd to purchase a plot of leasehold land adjoining the current property.

NCC flats recycling

Funding to provide flats’ recycling facilities across Newport, working in partnership with Newport City Council and Newport City Homes. This is an ongoing project.

Wastesavers Ltd capital fund

The Wastesavers Ltd capital fund represents assets purchased and to be purchased with capital grants in the subsidiary company. The fund will be reduced each year by the annual depreciation charge of the related fixed assets. In the financial statement of Wastesavers Limited, these capital grants have been treated as deferred capital income. Adjustments were made on consolidation to bring the accounting treatment for capital grants into line with Wastesavers Charitable Trust Limited's accounting policies.

34

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds (continued)

Prior year comparative:
At 1 April
2020
£
Restricted funds
WEFO (EDRF Obj 2)
171,070
Welsh Assembly
188,022
Cardiff City Council
47,700
Newport City Council
288,855
Rhondda Cynon Taf Council
-
Leasehold land (NCC)
121,281
NCC flats recycling
324,853
Wastesavers Ltd capital fund
1,935,349
Total restricted funds
3,077,130
General funds
867,011
Total unrestricted funds
867,011
Total funds
3,944,141
Unrestricted funds		 Income
£
-
-
-
481,145
110,000
-
-
56,824
647,969
4,848,007
4,848,007
5,495,976		 £
(21,513)
(18,638)
-
(34,545)
-
-
(25,173)
(385,205)
(485,074)
(4,875,886)
(4,875,886)
(5,360,960)
Expenditure		 £
£
-
149,557
-
169,384
-
47,700
(845)
734,610
-
110,000
-
121,281
-
299,680
-
1,606,968
(845)
3,239,180
845
839,977
845
839,977
-
4,079,157
Transfers
between
At 31 March
2021		 £
£
-
149,557
-
169,384
-
47,700
(845)
734,610
-
110,000
-
121,281
-
299,680
-
1,606,968
(845)
3,239,180
845
839,977
845
839,977
-
4,079,157
Transfers
between
At 31 March
2021
3,239,180
839,977
839,977
4,079,157

21. Finance lease commitments

The group had finance leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2022
£
206,960
264,932
471,892		 2021
£
206,959
471,892
678,851

All finance leases are held by Wastesavers Limited. The charity has no finance leases in its own name, but does act as guarantor for the leases held by Wastesavers Limited.

35

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

22. Deferred income

At 1 April 2021
Amounts deferred during the year
Amounts released during the year
At 31 March 2022		 2022
2021
£
£
57,059
82,649
65,915
57,059
(57,059)
(82,649)
65,915
57,059
The group		 2022
2021
£
£
-
-
-
-
-
-
-
-
The charity		 2022
2021
£
£
-
-
-
-
-
-
-
-
The charity
-

The Commercial Recycling Service invoices in advance of service delivery. As the group is not entitled to the income until the services are delivered, the income is deferred within the group accounts.

23. Related party transactions

Wastesavers Limited

Wastesavers Limited is a wholly owned subsidiary of Wastesavers Charitable Trust Limited. During the year Wastesavers Limited paid the following amounts to Wastesavers Charitable Trust Limited:

Rent
Management fee		 2022
£
48,168
11,970
60,138		 2021
£
47,220
11,454
58,674

Newport City Council

David Mayer, a trustee of Wastesavers Charitable Trust Limited, is also a Councillor of Newport City Council. During the year Wastesavers Limited purchased materials totalling £448,143 (2021: £634,759) and received a total of £2,930,381 (2021: £3,423,002), from Newport City Council. This included the following amounts:

Recycling payment
Recycling consumables
Emergency funding		 2022
£
2,200,722
345,343
384,316
2,930,381		 2021
£
2,531,789
382,781
508,432
3,423,002

A-Print and Design Limited

Roger Ayres, a trustee of Wastesavers Charitable Trust Limited, is also director of a printing company called A-Print and Design Limited. During the year Wastesavers Charitable Trust Limited (group) purchased printing supplies totalling £540 (2021: £685) from A-Print and Design Limited. The outstanding balance at 31 March 2022 was £Nil (2021: Nil).

36

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2022

24. Capital commitments

At 31 March 2022, capital expenditure commitments were as follows:

Capital commitments
At 31 March 2022, capital expenditure commitments were as follows:
Contracted but not provided for in the accounts:
Reuse Centre building works		 2022
£
-
-		 2021
£
439,640
439,640

37