Financial Statements for the year ended 31 March 2023
Action for the River Kennet
TRUSTEES ANNUAL REPORT
FOR THE YEAR TO 31 MARCH 2023
| 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: | Rob Starr | |
| Sam Marshall | ||
| 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.
Page 2
Action for the River Kennet
TRUSTEES ANNUAL REPORT
FOR THE YEAR TO 31 MARCH 2023
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 Rivers in the Kennet and Pang catchments and increasing 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.
-
creates, manages and raises funding for river improvement projects.
-
organises and runs activities for schools to help students learn about the river environment and ecology.
-
organises visits to and walks along the River Kennet.
-
engages with schools, communities and policy makers to encourage the sustainable use of water.
-
provides and analyses data to demonstrate the condition of the ecology of the river and brings this to the attention of public and other bodies.
-
provides opportunities for people to carry out volunteer work in and by the river and trains citizen scientists to collect and record data.
-
meets regularly with members, stakeholders and environmental bodies to brief them on the river catchment and responds to consultations about fresh water and chalkstreams.
-
publishes regular newsletters informing its members about activities and river health.
-
is part of delivering Water Framework Directive goals, supports the catchment based approach and hosts the Kennet Catchment Partnership and co-hosts the South Chilterns Catchment Partnership.
-
works with and advises farmers, land managers and homeowners on ways to minimise their impact on rivers.
Achievements and Performance
ARK has retained two out of three of the temporary posts created through government’s Green Recovery Challenge fund, this has enabled the charity to undertake more complex and ambitious projects, particularly the design and creation of wetlands.
Unrestricted income, which can be used for general expenditure, was £93,294 (2022 - £75,711), with income from donations and memberships lower at £37,761 (2022 - £53,989). We received £8,000 (2022 - £24,000) of donations from Trusts and Foundations. Total income dropped to £579,391 (2022 - £668,588). We received funding at the end of last year of £250,000 as a voluntary reparation resulting from a pollution incident and we have been working this year on habitat restoration projects in the lower reaches of the catchment. Total funds rose by £71,222 (2022 - £219,838). Restricted funds carried forward increased from £380,143 to £424,193.
In the year we had an increase on general funds of £27,171 (2022 –increase of £23,882). We had an operating gain of £30,236 (2022 - gain of £28,531) and our long term investments lost £3,065 in value (2022 – gain of £4,819) and were worth £68,568 (2022 - £70,434) at the financial year end.
We continue to campaign to ensure that the chalk stream habitat is protected from over-abstraction and pollution.
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. To bolster evidence we have been collecting and reporting water quality data using a combination of our staff and volunteers. In addition, we have begun to design and build wetlands and sustainable drainage projects that will have a positive impact on water quality.
A portion of the Green Recovery Challenge Fund monies were used for feasibility and design for future projects, and using those plans we have been able so secure funds from other sources, including Farming in Protected Landscapes and commercial investment to create change on the ground.
Education remains a key part of our activities and we have had to diversity our funding sources to keep up with demand. There is still a waiting list for ‘River School’ and we will be putting effort into securing a more reliable funding stream to support this important work.
We are advocates of the Catchment Based Approach and continue to host the Kennet Catchment Partnership and cohost the South Chilterns Catchment Partnership, and both are effective and result in a better understanding of the water environment, which has lead to new projects funded by multiple partners.
Page 3
We are creating more SuDS (Sustainable urban Drainage Systems) projects both in schools and the wider community. Demand for training through Rain Gardens UK exceeds our capacity to provide it.
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 as well as our tireless volunteers. Corporate volunteering is an expanding area of activity and provides vital funds for us to continue to improve the rivers in the catchments we serve.
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 and beyond owe them enormous gratitude.
Charlotte Hitchmough
Director
Page 4
Action for the River Kennet
Statement of Financial Activities for the year to 31 March 2023
| 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) 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 £ £ £ £ 37,761 - 37,761 73,989 46,208 486,097 532,305 589,752 7,345 - 7,345 2,886 1,980 - 1,980 1,961 93,294 486,097 579,391 668,588 8,391 - 8,391 7,655 51,945 442,047 493,992 443,577 2,464 - 2,464 2,313 62,800 442,047 504,847 453,545 (258) - (258) (24) 30,236 44,050 74,286 215,019 (3,065) - (3,065) 4,819 27,171 44,050 71,221 219,838 270,418 380,143 650,561 430,723 297,589 424,193 721,782 650,561 |
|---|---|
Page 5
Action for the River Kennet
Balance Sheet as at 31 March 2023
| 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 |
2023 2022 £ £ 94,246 102,612 68,568 70,434 162,814 173,046 126,000 313,176 537,650 198,017 663,650 511,193 (104,682) (33,678) 558,968 477,515 721,782 650,561 297,589 270,418 424,193 380,143 721,782 650,561 |
|---|---|
Signed by two trustees on behalf of all the trustees
Richard Clarke
Martin Gibson
Date: 10 October 2023
Page 6
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.
Page 7
(e) Resources expended
Expenditure is recognised when a liability is incurred.
-
Costs of generating funds are those costs incurred in attracting voluntary income.
-
Charitable activities include expenditure associated with restoration and improvement of the River Kennet including research,
-
• education and vocational training and the dissemination of information.
-
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with
-
• constitutional and statutory requirements.
-
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of
-
• 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.
Page 8
Action for the River Kennet
Notes to the Accounts
2 Income from charitable activities
----- Start of picture text -----
2023 2023 2023 2022 2022 2022
Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds Funds Funds
£ £ £ £ £ £
Grants received 46,208 486,097 532,305 16,875 572,877 589,752
Membership and -
37,761 37,761 53,989 20,000 73,989
donations
- -
Sundry income 9,325 9,325 4,847 4,847
93,294 486,097 579,391 75,711 592,877 668,588
----- End of picture text -----
Of the unrestricted income of £93,294 (2022 - £75,711), £37,000 (2022 - £16,875) was a grant from the Environment Agency (EA) to fund the charity's Catchment Management hosting role.
3
Investment income
Of the investment income of £1,980 (2022 - £1,961), all of it arose from investments held with our Investment Advisor. £2,252 (2022 - £61) of sundry 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 2023 2022 £ £ £ £ £ £ 8,215 120,515 13,858 2,464 145,052 158,359 176 329,566 - - 329,742 267,435 - - 21,687 - 21,687 19,385 - 6,498 1,868 - 8,366 8,366 - 37,413 (37,413) - - - 8,391 493,992 - 2,464 504,847 453,545 |
|---|---|
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.
Page 9
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: |
2023 2022 £ £ 8,366 8,366 400 400 2023 2022 £ £ 127,769 141,289 10,262 8,156 7,021 8,914 145,052 158,359 2023 2022 Number Number 1 1 3 4 1 1 |
|---|---|
7 Staff costs
The emoluments of highest paid member of staff were in the range £30,000- £40,000 (2022 - £30,000 - £40,000 ): pension contributions of £3,128 (2022 - £3,189) 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 (2022 – £nil), save as below.
Martin Gibson is a trustee of the GC Gibson Charitable Trust which has given an unrestricted donation of £5,000 (2022 - £5,000) to the charity.
Page 10
Action for the River Kennet
Notes to the Accounts
9 Tangible fixed assets
| Cost: At 31 March 2022 At 31 March 2023 Depreciation: At 31 March 2022 Charge for the year At 31 March 2023 Net book value: At 31 March 2023 At 31 March 2022 |
Land Computer and plant equipment Vehicles Total £ £ £ £ 76,563 18,887 24,105 119,555 76,563 18,887 24,105 119,555 - 10,415 6,528 16,943 - 2,340 6,026 8,366 - 12,755 12,554 25,309 76,563 6,132 11,551 94,246 76,563 8,472 17,577 102,612 |
|---|---|
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) in year Investments at valuation 31 March Investments at valuation 1 April |
2023 2022 £ £ 70,434 68,254 5,486 5,965 (4,287) (5,202) (3,065) 1,417 68,568 70,434 |
|---|---|
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 |
2023 2022 £ £ 74,549 310,183 51,451 2,993 126,000 313,176 |
|---|---|
12 Creditors
| Trade creditors Accruals and other creditors Salaries and social security costs Amounts falling due within one year: |
2023 2022 £ £ 8,037 4,780 73,497 5,750 23,148 23,148 104,682 33,678 |
|---|---|
Page 11
Action for the River Kennet
Notes to the Accounts
13 Analysis of funding
| Restricted Income in year to 31 March 2023 Environment Agency Amazon Web Services North Wessex Down AONB Defra, FIPL Fund, NWAONB Natural England Wiltshire Council, AONB, Lottery Wiltshire Council and Patsy Wood Trust Thames 21 Rivers Trust Thames Water Thames Water Enronmental Reparation Fine Thames Water DWMP Fund Other organisations and individuals Thames Rivers Trust - "Community Eel" Co-op Community Transfer from unrestricted funds to cover project losses |
Balance Income Expenditure Transfers Balance b/f c/f £ £ £ £ £ 54,198 99,552 (73,350) - 80,400 - 173,527 (118,873) - 54,654 - 3,000 - - 3,000 - 124,244 (119,879) - 4,365 944 4,277 (997) - 4,224 31,650 - (322) - 31,328 5,822 - (5,822) - - - 2,000 (32) - 1,968 34,199 27,740 (10,554) - 51,385 250,000 - (65,221) 184,779 - 9,000 (7,775) 1,225 (7,045) 42,756 (35,891) 7,045 6,865 (2,422) - - 2,422 - 3,331 - (3,331) - - 9,467 - - (9,467) - 380,143 486,096 (442,047) - 424,193 |
|---|---|
| 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 |
|---|---|
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.
14 Reserves
Of our total unrestricted funds of £297,589 (2022 - £270,417) we retain £100,000 (2022 - £100,000) as a reserve in cash, cash equivalents or readily realisable investments, 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 2023 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:
-
examine the accounts under section 43 of the 1993 Act
-
follow the procedures laid down in the General Directions given by the Charity Commission under section 43(7)(b)of the 1993 Act, and
-
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: 10 October 2023
Page 13