Financial Statements for the year ended 31 March 2022
Action for the River Kennet
TRUSTEES ANNUAL REPORT
FOR THE YEAR TO 31 MARCH 2022
| 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 2022) | ||
| Judy Pitts (appointed 11 October 2022) | ||
| David Hill (appointed 11 Octobe 2022) | ||
| 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 2022
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:
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ARK is committed to improving understanding of the Rivers in the Kennet and Pang catchments and increasing
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opportunities for people to enjoy them, whilst protecting the wildlife to which they are home. The Trustees have regard to the guidance on public benefit issued by the Charity Commission.
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ARK creates, manages and raises funding for river improvement projects.
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ARK organises and runs activities for schools to help students learn about the river environment and ecology.
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ARK organises visits to and walks along the River Kennet.
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ARK engages with schools, communities and policy makers to encourage the sustainable use of water.
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It provides and analyses data to demonstrate the condition of the ecology of the river and brings this to the
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attention of public and other bodies.
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ARK provides opportunities for people to carry out volunteer work in and by the river and trains citizen scientists to
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collect and record data.
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ARK meets regularly with members, stakeholders and environmental bodies to brief them on the river catchment
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and responds to consultations about fresh water and chalkstreams.
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ARK publishes regular newsletters informing its members about activities and river health.
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ARK is part of delivering Water Framework Directive goals, supports the catchment based approach and hosts
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the Kennet Catchment Partnership and co-hosts the South Chilterns Catchment Partnership.
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ARK works with and advises farmers, land managers and homeowners on ways to minimise their impact on rivers.
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, was £75,711 (2021 - £94,926), with income from donations and memberships remaining steady at £53,989 (2021 - £56,588). We received £24,000 (2021 - £10,000) of donations from Trusts and Foundations for which we were very grateful. Total income rose to £671,037 (2021 - £313,285), bolstered by two significant grants form the Green Recovery Challenge Fund. We also received funding at the end of the year from Thames Water of £250,000 as a voluntary reparation resulting from a pollution incident. These funds are to be used to repair damage and improve river habitat around Thatcham. Total funds rose by £222,269 (2021 - rose by £147,227). Restricted funds carried forward increased from £184,188 to £380,143.
In the year we had an increase on general funds of £23,883 (2021 – £60,665). We had an operating surplus of £28,531 (2021 - £1,190) and our long term investments gained £4,819 in value (2021 – gain of £7,325) and were worth £70,434 (2021 - £68,254) 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 take a catchment scale approach 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 ecologically 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, 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 1,500 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. All 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 2022
| 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) Transfer Note 13 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 £ £ £ £ 53,989 20,000 73,989 56,588 16,875 572,877 589,752 253,444 2,886 - 2,886 1,475 1,961 - 1,961 1,778 75,711 592,877 668,588 313,285 7,655 - 7,655 5,353 37,188 406,389 443,577 170,489 2,313 - 2,313 2,587 47,156 406,389 453,545 178,429 (24) - (24) 847 28,531 186,488 215,019 135,703 (9,467) 9,467 - - 4,819 - 4,819 11,524 23,883 195,955 219,838 147,227 246,535 184,188 430,723 283,496 270,418 380,143 650,561 430,723 |
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Action for the River Kennet
Balance Sheet as at 31 March 2022
| 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 Note 14 Restricted funds Note 13 Total funds |
2022 2021 £ £ 102,612 105,147 70,434 68,254 173,046 173,401 313,176 151,021 198,017 135,868 511,193 286,889 (33,678) (29,567) 477,515 257,322 650,561 430,723 270,418 246,535 380,143 184,188 650,561 430,723 |
|---|---|
Signed by two trustees on behalf of all the trustees
Richard Clarke
Martin Gibson
Date: 15 November 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.
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Costs of generating funds are those costs incurred in attracting voluntary income.
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Charitable activities include expenditure associated with restoration and improvement of the River Kennet including research,
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• education and vocational training and the dissemination of information.
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Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with
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• constitutional and statutory requirements.
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Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of
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• resources, e.g. allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
(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 -----
2022 2022 2022 2021 2021 2021
Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds Funds Funds
£ £ £ £ £ £
Grants received 16,875 572,877 589,752 35,085 218,359 253,444
Membership and -
53,989 20,000 73,989 56,588 56,588
donations
- -
Sundry income 4,847 4,847 3,253 3,253
75,711 592,877 668,588 94,926 218,359 313,285
----- End of picture text -----
Of the unrestricted income of £75,711 (2021 - £94,926), £16,875 (2021 - £20,075) was a grant from the Environment Agency (EA) to fund the charity's Catchment Management hosting role, £nil (2021 - £9,846) was claimed from HMRC under the Coronavirus Job Retention Scheme, and £nil (2021 - £15,000) was a grant from Thames Water for Covid related support.
3 Investment income
Of the investment income of £1,961 (2021 - £1,778), all of it arose from investments held with our Investment Advisor. £61 (2021 - £70) 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 2022 2021 £ £ £ £ £ £ 7,563 135,353 13,130 2,313 158,359 77,698 92 267,343 - - 267,435 77,674 - - 19,385 - 19,385 21,453 - 6,498 1,868 - 8,366 1,604 - 34,383 (34,383) - - - 7,655 443,577 - 2,313 453,545 178,429 |
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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: |
2022 2021 £ £ 8,366 1,604 400 300 2022 2021 £ £ 141,289 71,484 8,156 2,135 8,914 4,079 158,359 77,698 2022 2021 Number Number 1 1 4 1 1 1 |
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7 Staff costs
The emoluments of highest paid member of staff were in the range £30,000- £40,000 (2021 - £30,000 - £40,000 ): pension contributions of £3,189 (2021 - £3,017) 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 (2021 – £nil), save as below.
Martin Gibson is a trustee of the GC Gibson Charitable Trust which has given an unrestricted donation of £5,000 (2021 - £7,000) to the charity.
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Action for the River Kennet
Notes to the Accounts
9 Tangible fixed assets
| Cost: At 31 March 2021 Additions in the year At 31 March 2022 Depreciation: At 31 March 2021 Charge for the year At 31 March 2022 Net book value: At 31 March 2022 At 31 March 2021 |
Land Computer and plant equipment Vehicles Total £ £ £ 76,563 13,056 24,105 113,724 - 5,831 - 5,831 76,563 18,887 24,105 119,555 - 8,075 502 8,577 - 2,340 6,026 8,366 - 10,415 6,528 16,943 76,563 8,472 17,577 102,612 76,563 4,981 23,603 105,147 |
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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 valuation 31 March Investments at valuation 1 April |
2022 2021 £ £ 68,254 51,062 5,965 14,048 (5,202) (4,388) 1,417 7,532 70,434 68,254 |
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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 |
2022 2021 £ £ 310,183 80,109 2,993 70,912 313,176 151,021 |
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12 Creditors
| Trade creditors Accruals and other creditors Salaries and social security costs Amounts falling due within one year: |
2022 2021 £ £ 4,780 6,868 5,750 - 23,148 22,699 33,678 29,567 |
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Action for the River Kennet
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Notes to the Accounts
13 Analysis of funding
| Restricted Income in year to 31 March 2022 Environment Agency Natural England Defra - Green Recovery Fund Wiltshire Council and Patsy Wood Trust Thames Water Thames Rivers Trust - "Community Eel" Co-op Community Other organisations Transfer from unrestricted funds to cover project losses |
Balance Income Expenditure Transfers Balance b/f c/f £ £ £ £ £ 101,951 60,286 (108,039) - 54,198 27 2,600 (1,683) - 944 (499) 248,765 (216,616) - 31,650 11,432 - (5,610) - 5,822 19,340 277,829 (12,970) - 284,199 38,271 3,148 (43,841) - (2,422) 3,331 - - - 3,331 10,336 249 (17,630) - (7,045) - - - 9,467 9,467 184,189 592,877 (406,389) 9,467 380,143 |
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There were several restricted projects during the year with minor overruns.The charity transfers funds from unrestricted funds to cover these. The amount in 2022 was £9467. The loss making projects have all finished.
| Restricted Income in year to 31 March 2021 Environment Agency Natural England Defra - Green Recovery Challenge Fund - "Sparkling Streams" Wiltshire Council and Patsy Wood Trust Thames Water Thames Rivers Trust - "Community Eel" Salisbury Diocean Schools Co-op Community 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) - 6,018 - (2,687) 3,331 14,896 4,206 (8,766) 10,336 97,627 218,359 (131,797) 184,189 |
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14 Reserves
Of our total unrestricted funds of £270,417 (2021 - £246,534) we retain £100,000 (2021 - £80,000) 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.
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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 2022 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:
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examine the accounts under section 43 of the 1993 Act
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follow the procedures laid down in the General Directions given by the Charity Commission under section 43(7)(b)of the 1993 Act, and
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state whether
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: 15 November 2022
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