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2021-03-31-accounts

Financial Statements for the year ended 31 March 2021

Action for the River Kennet

TRUSTEES ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

Name: Action for the River Kennet
Also known as: ARK
Charity number: 1120725
Address: Avebury
Elcot Park
Marlborough SN8 2BG
Director: Charlotte Hitchmough
Patron: Lord Kennet
Trustees: Richard Clarke Chairman
Martin Gibson Treasurer
Sean Dempster (resigned 11 October 2021)
Judy Pitts (appointed 11 October 2021)
David Hill (appointed 11 Octobe 2021)
Officers: Technical advisor – John Lawson
Ecological advisor – Peter Marren
Other Committee members: Kevin Light
Rob Starr
River Habitat advisor: John Hounslow
Investment advisors: Charles Stanley
55 Bishopsgate
London EC2N 3AS
Bankers: CAF Bank
25 Kings Hill Avenue
West Malling
Kent ME19 4JQ

Structure and Governance

The charity is constituted as a trust governed by a constitution. Trustees are elected annually by the members.

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Action for the River Kennet

TRUSTEES ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

Objectives and Activities

The objectives of Action for the River Kennet ("ARK") are to conserve, protect, restore, and improve the rivers, streams, watercourses and water impoundments of the catchments comprising the River Kennet and its tributaries including adjacent river catchments, estuarine and coastal areas.

Activities for the public benefit:

 ARK is committed to improving understanding of the River Kennet and increasing opportunities for people to enjoy it, whilst protecting the wildlife to which it is home. The Trustees have regard to the guidance on public benefit issued by the Charity Commission.

Response to Covid 19

The trustees are carefully monitoring the impact of Covid 19 on all aspects of the charity and risks are being proactively managed. COVID has caused some staff absences either due to contracting the virus or being required to self isolate, and volunteering activities and school visits have been adapted or postponed in line with the latest government advice. Funding from Thames Water and support from HMRC for charities has helped to cover loss of income. Membership income is being closely monitored and has not reduced. The trustees anticipate that the charity will be able to maintain its target level of reserves.

The trustees will continue to monitor the level of reserves throughout the year.

Achievements and Performance

Action for the River Kennet ("ARK") has expanded in the last year, employing two new project officers and a part time project manager in addition to the existing team of 3 part time staff. We were successful in two bids to DEFRA’s Green Recovery Challenge Fund which has funded the majority of these new posts until March 2022.

Unrestricted income, which can be used for general expenditure, rose to £94,926 (2020 - £64,646), with income from donations and memberships increasing to £56,588 (2020 - £43,441). We received £24,000 (2020 - £10,000) of donations from Trusts and Foundations for which we were very grateful. Total income rose to £313,285 (2020 - £128,683), bolstered by two significant grants form the Green Recovery Challenge Fund. Total funds rose by £147,227 (2020 - fell by £31,901). Restricted funds carried forward increased from £97,627 to £184,189.

In the year we had an increase on general funds of £60,665 (2020 – deficit of £7,104). We had an operating surplus of £49,141 (2020 - £1,190) and our long term investments recovered last year’s losses with a gain of £11,524 (2020 – loss of £8,294) and were worth £68,254 (2020 - £51,062) at the financial year end.

We continue to campaign to ensure that the chalk stream habitat is protected from over-abstraction and pollution, and this year our staff have actively supported the Environment Agency and Thames Water in their investigations into the impacts of abstraction on the upper Kennet by collecting and sharing data with their consultants.

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Having made good progress to reduce abstraction, leaving more water in the river to support wildlife in recent years, we have shifted our focus to improving water quality. We have done this by calling for a reduction in the volume of untreated raw sewage tipped into the river, working with Highways authorities to reduce road run off, and supporting further improvements in farming practices. We have highlighted data produced by the Environment Agency and presented by the Rivers Trust showing how much untreated sewage is poured into our rivers each year, and we are working with MPs to get regulations strengthened and enforced in order to protect rivers from pollution in future. To bolster evidence we have been collecting and reporting water quality data using a combination of our staff and volunteers.

The Green Recovery Challenge Fund grants have been game changing for ARK, enabling us to improve more river reaches, create new wetlands, reduce flood risk, improve water quality and connect more people with nature than ever before. The funding has enabled us to employ and train new staff, providing a year's employment for two young people starting environmental careers. 'Sparkling Streams' tackles two of the more ecologivally damaged rivers in the catchment where we can make the biggest positive difference, while the 'Thames Catchment Community Eels Project' focusses on eels, which are almost absent from the river nowadays, despite being prolific in the past. Our project officer has been training citizen scientists to map barriers to eel migration and leading school and community outreach to raise understanding and awareness of this threatened species. Both projects will leave a legacy that lays a foundation for future work.

During COVID our Wild River Reserve provided green-blue space, which was particularly valuable during lockdown, providing a place within easy walking distance of town for people to excercise and enjoy being in nature. We used the Reserve to run organised 'vole strolls' specifically aimed at people struggling with mental health, as well as offering volunteering opportunities for small groups as soon as it was safe to do so. For many people this was a stepping stone towards getting out and about again after the restrictions of lockdown. Despite COVID we worked with more than 1,000 school children, adapting educational material to digital platforms and running more outdoor events and activities to accommodate the changing restrictions.

We are advocates of the Catchment Based Approach and continue to host the Kennet Catchment Partnership and cohost the South Chilterns Catchment Partnership. Our ‘Sparkling Streams’ project is an embodiment of this approach, by partnering with North Wessex Downs AONB, the Southern Streams Farmer Group and Hungerford Town and Manor, we have built a project that includes elements throughout the Dun and Shalbourne sub-catchments, each of which will contribute to improved river health.

We are creating more SuDS (Sustainable urban Drainage Systems) projects, and now, as well as building rain gardens, we offer rain garden training courses through Rain Gardens UK.

We continue to invest in robust data management so that we can safely store and interrogate the Riverfly and other data that our volunteers collect every month.

ARK continues to be grateful to our diverse and interested membership. We continue to expand this, and are committed to improving the whole river and its tributaries from Avebury to the Thames.

I would like to thank my colleagues and the Executive Committee for their hard work, enthusiasm and support. I would also like to thank the many volunteers who have made ARK so effective. Many of our members have contributed in a variety of ways and we and the animals, plants, fish and invertebrates of the Kennet owe them enormous gratitude.

Charlotte Hitchmough

Director

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Action for the River Kennet

Statement of Financial Activities for the year to 31 March 2021

Income from:
Donations
Grants
Other trading activities
Investments
Note 3
Total
Note 2, 13
Expenditure on:
Raising funds
Charitable activities
Governance
Total
Note 4
Net realised gains/(losses) on investments
Net income/(expenditure)
Other recognised gains/(losses)
Gains/(losses) on revaluation of investments
Net Movement in Funds
Reconciliation of Funds
Total funds brought forward
Total funds carried forward
Note 13		 Unrestricted
Funds
Restricted
Funds
Total funds
Prior period
Total funds
£
£
£
£
56,588
-
56,588
43,441
35,085
218,359
253,444
82,882
1,475
-
1,475
260
1,778
-
1,778
2,100
94,926
218,359
313,285
128,683
5,353
-
5,353
3,769
38,692
131,797
170,489
145,266
2,587
-
2,587
2,796
46,632
131,797
178,429
151,831
847
-
847
(459)
49,141
86,562
135,703
(23,607)
11,524
-
11,524
(8,294)
60,665
86,562
147,227
(31,901)
185,869
97,627
283,496
315,397
246,534
184,189
430,723
283,496

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Action for the River Kennet

Balance Sheet as at 31 March 2021

Fixed assets
Tangible assets
Note 9
Investments
Note 10
Total fixed assets
Current assets
Debtors
Note 11
Cash at bank and in hand
Total current assets
Creditors: amounts falling due within 1 year
Note 12
Net current assets/(liabilities)
Net assets
Funds of the charity
Unrestricted funds
Restricted funds
Note 13
Total funds		 2021
2020
£
£
105,147
80,249
68,254
51,062
173,401
131,311
151,021
10,757
135,868
151,233
286,889
161,990
(29,567)
(9,805)
257,322
152,185
430,723
283,496
246,534
185,869
184,189
97,627
430,723
283,496

Signed by two trustees on behalf of all the trustees

Richard Clarke

Martin Gibson

Date: 18 January 2022

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Action for the River Kennet

Notes to the Accounts

1 Accounting policies

(a) Accounting convention

These financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting standards, the Charities Act 2011, the Charities SORP and the Financial Reporting Standard (FRS 102). The principal accounting policies adopted in the preparation of the financial statements are set out below.

The company has taken advantage of the exemption in FRS 102 from the requirement to produce a cash flow statement on the grounds that it is a small entity.

The charity meets the definition of a public benefit entity under FRS 102.

The trustees have considered the financial position, forecasts and cash flows of the organisation and are satisfied that it is appropriate to prepare the accounts on a going concern basis.

(b) Depreciation

Equipment is depreciated at 10%-25% per annum on a straight-line basis in order to write off the cost of the assets over their estimated useful lives.

(c) Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. Restricted fund are set out in note 13 to the financial statements.

(d) Incoming resources

Voluntary income including donations, gifts and legacies and grants that provide core financing or are of general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Such income is only restricted when the donor specifies that the grant or donation must only be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income is recognised on a receivable basis.

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(e) Resources expended

Expenditure is recognised when a liability is incurred.

(f) Grants awarded

Grants are awarded to other conservation organisations, who have agreed a partnership in order to undertake direct, on the ground conservation projects, that achieve the objectives of ARK.

(g) Pension costs

The charity operates a defined contribution pension scheme. Contributions are charged to the unrestricted fund as they become payable in accordance with the rules of the scheme.

(h) Foreign currency

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities at the year end are converted into sterling at the year end rate. Any loss or gain on foreign currency conversion is charged to overhead expenses as incurred.

(i) Volunteers and donated services and facilities

The value of services provided by volunteers is not incorporated into these financial statements.

Where services are provided to the charity as a donation that would normally be purchased from our suppliers, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity.

(j) Taxation

As a registered charity, the company is exempt from liability to corporation tax on its charitable activities.

(k) Leasing arrangements

Rentals payable under operating leases are charged to the unrestricted reserves on a straight-line basis over the lease term.

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Action for the River Kennet

Notes to the Accounts

2 Income from charitable activities

----- Start of picture text -----
2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds Funds Funds
£ £ £ £ £ £
Grants received 35,085 218,359 253,444 18,845 64,037 82,882
Membership and - -
56,588 56,588 43,441 43,441
donations
- -
Sundry income 3,253 3,253 2,360 2,360
94,926 218,359 313,285 64,646 64,037 128,683
----- End of picture text -----

Of the unrestricted income of £94,926 (2020 - £64,646), £20,075 (2020 - £16,890) was a grant from the Environment Agency (EA) to fund the charity's Catchment Management hosting role, £9846 (2020 - £nil) was claimed from HMRC under the Coronavirus Job Retention Scheme, and £15,000 (2020 - £nil) was a grant from Thames Water for Covid related support.

3

Investment income

Of the investment income of £1,778 (2020 - £2,100), all of it arose from investments held with our Investment Advisor. £70 (2020 - £309) of income was interest received from bank deposits.

4 Analysis of expenditure on charitable activities and costs of generating funds

Staff costs
Projects and activities
Administration costs
Depreciation
Reallocation of support costs		 Costs of
generating
funds
Charitable
activities
Support
costs
Governance
costs
2021
2020
£
£
£
£
£
£
3,537
49,396
22,642
2,123
77,698
76,404
1,619
76,055
-
-
77,674
55,692
197
9,860
10,932
464
21,453
18,748
-
1,478
126
-
1,604
987
-
33,700
(33,700)
-
-
-
5,353
170,489
-
2,587
178,429
151,831

5 Analysis of governance and support costs

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs are allocated to the costs of the charitable activities. Allocations of costs, in particularly staff costs, are based on time records but the charity does not have a detailed time recording system as this would be too onerous, so estimates are made.

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Action for the River Kennet

Notes to the Accounts

6 Net expenditure for the year

Net expenditure for the year is stated after charging:

Depreciation
Independent Accountants fees
Staff costs
Total remuneration:
Salaries
Social security costs
Pension costs
Management
Project Officer
Administration
The average number of persons employed by the company was:		 2021
2020
£
£
1,604
987
300
300
2021
2020
£
£
71,484
70,176
2,135
2,716
4,079
3,512
77,698
76,404
2021
2020
Number
Number
1
1
1
1
1
1

7 Staff costs

The emoluments of highest paid member of staff were in the range £30,000- £40,000 (2020 - £30,000 - £40,000 ): pension contributions of £3,017 (2020 - £2,537) were made for this person.

8 Trustee remuneration and related party transactions

No remuneration or expenses were paid to the trustees or committee during the year, except as detailed below.

No director or trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2020 – £nil), save as below.

Martin Gibson is a director of MJS Farm Contracting Limited which provided services to the charity totalling £nil (2020 - £1,683). MJS have been a regular sub contractor on river restoration projects and also look after the land and grazing owned by the charity. All costs are agreed on an arms length basis and are subjected to competitive quotations and approved before payment. Costs are reviewed and approved by the other trustees on a regular basis.

Martin Gibson is a trustee of the GC Gibson Charitable Trust which has given an unrestricted donation of £7,000 (2020 - £5,000 to the charity.

Sean Dempster received reimbursment of expenses incurred on behalf of the Charity of £nil (2020 - £344)

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Action for the River Kennet

Notes to the Accounts

9 Tangible fixed assets

Cost:
At 31 March 2020
Additions in the year
At 31 March 2021
Depreciation:
At 31 March 2020
Charge for the year
At 31 March 2021
Net book value:
At 31 March 2021
At 31 March 2020		 Land
Computer
and plant
equipment
Vehicles
Total
£
£
£
76,563
10,659
-
87,222
-
2,397
24,105
26,502
76,563
13,056
24,105
113,724
-
6,973
-
6,973
-
1,102
502
1,604
-
8,075
502
8,577
76,563
4,981
23,603
105,147
76,563
3,686
-
80,249

The land was acquired in 2012 and has not been revalued. The land is owned jointly with Marlborough Town Council. It is not considered relevant or benefical to revalue the land except to provide for any diminution of value.

10 Investments

Acquired at cost in year
Disposals at original cost in year
Revaluation gain/(loss)
Investments at 31 March
Investments at 1 April		 2021
2020
£
£
51,062
59,814
14,048
-
(4,388)
(4,767)
7,532
(3,985)
68,254
51,062

All investments are quoted equities and debt instruments held at our stockbroker's nominee accounts.

11 Debtors

Amounts due within one year:
Prepayments and other debtors
Grants, invoices, subscriptions and donations		 2021
2020
£
£
80,109
9,870
70,912
887
151,021
10,757

The £292,965 other debtor represents the committed but unpaid part of the two Green Recovery Challenge fund grants awarded in March 2021.It is expected that these amounts will be mostly received in the next 12 months as the projects are completed.

12 Creditors

Accruals and other creditors
Amounts falling due within one year:
Salaries and social security costs		 2021
2020
£
£
6,868
1,292
22,699
8,513
29,567
9,805

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Action for the River Kennet

Notes to the Accounts

13 Analysis of funding

Restricted Income in year to 31 March 2021
Environment Agency
Natural England
Defra - Green Recovery Challenge Fund - "Sparkling Streams"
Wiltshire Council, and Patsy Wood Grant
Thames Water
Thames River Restoration Trust - "Community Eel"
Salisbury Diocean Schools
Co-op Community
Other organisations
Restricted Income in year to 31 March 2020
Environment Agency/Natural England
Wiltshire Council, Patsy Wood Grant, and Co-Op
Salisbury Diocean Schools
Other organisations		 Balance
Income
Expenditure
Balance
b/f
c/f
£
£
£
£
62,902
114,353
(75,304)
101,951
-
4,225
(4,198)
27
-
31,669
(32,168)
(499)
11,829
-
(397)
11,432
-
19,340
-
19,340
-
44,566
(6,295)
38,271
1,982
-
(1,982)
0
6,018
-
(2,687)
3,331
14,896
4,206
(8,766)
10,336
97,627
218,359
(131,797)
184,189
Balance
Income
Expenditure
Balance
b/f
c/f
£
£
£
£
82,188
17,070
(36,354)
62,904
15,817
8,023
(5,995)
17,845
-
10,500
(8,518)
1,982
24,419
2,452
(11,975)
14,896
122,424
38,045
62,842
-
97,627

14 Reserves

Of our total unrestricted funds of £246,534 (2020 - £185,869) we retain £80,000 (2020 - £50,000) as a reserve in cash or cash equivalents, which is approximately 9 months costs. It is intended that this would be used to wind the charity down should there no longer be a purpose which can or should be funded.

Page 12

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ACTION FOR THE RIVER KENNET

I report on the accounts of the Charity for the year ended 31 March 2021 which are set out on pages 5 to 12.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The Charity’s trustees consider that an audit is not required for this year under section 43(2) of the Charities Act 1993 (the 1993 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respect, the requirements to keep accounting records in accordance with section 41 of the 1993 Act, and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 1993 Act have not been met, or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Vivien Bayne-Jardine FCA

Independent Examiner

Date: 18 January 2022

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