**Westcountry Rivers Trust** (A Company Limited by Guarantee)
## **Trustees' Annual Report and Financial Statements**
For the year ended 31 December 2022
Registered Charity Number: 1135007 Registered Company Number: 06545646
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|Trustees' Report|1- 15|
|Independent Auditors' Report|16 - 19|
|Consolidated Statement of Financial Activities|20|
|Consolidated Balance Sheet|21|
|Consolidated Statement of Cash Flows|22|
|Notes to the Financial Statements|23 - 48|
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The Trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 December 2022. These are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Chairman’s report**
2022 saw us fully recover from COVID-19 in terms of being able to deliver a full suite of activities but several practices have been changed forever, probably for the better. An example of this is shifting many meetings that would have been face to face to on-line, cutting out unnecessary travel. Additionally, Covid-19 has further increased our already flexible approach to accommodate working from home, the office and the field and we have adapted our spaces to more communal working.
Despite Brexit happening over six years ago, the impacts are finally being felt on the Trust as we are coming out of our final Interreg projects and are not able to access the new 2021-2027 programme. This is disappointing as there are many European partners, collaborations and projects, we would like to work with, but the Trust have still been able to access Horizon Europe funding under the Government’s UK Funding Guarantee. This has allowed us to start significant projects, such as TransformAr, looking at Nutrient Neutrality on some of our rivers and the role of Phosphate Trading paid for by housing developers.
Whilst Brexit continues to play out, and given the future funding environment is still uncertain, we are proud that we have continued to build our robustness and improve our ability to be resilient to these uncertainties. We are thankful that we have managed to build unrestricted reserves over recent years to provide some comfort and security that we can invest in and adapt to our future operating environment, whatever that may be.
It is therefore with great relief that despite these challenging few years, we have emerged stronger than ever and 2022 has seen an incredibly busy year delivering complex projects across a wide range of interests and areas. We are extremely grateful to all our funders and partners for their support, and it is through these strong relationships that the Trust has been able to grow through the past year.
One thing that has been working significantly in our favour is the large and growing interest in the state of our rivers and this has been nowhere more felt than in the growth of our Citizen Science Investigation programme. We now have more than 1,000 volunteers collecting almost 5,000 water quality samples across the Westcountry and this is helping us tap into and direct this interest as well as empower community groups. We have turned this data into 127 score cards to date that are now helping communities understand their rivers which further empowers them into forming river action groups. We fully expect this to grow further in coming years and the Trust is diverting significant focus into helping facilitate and service this interest.
1
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
Finally, I would like to thank all of the farmers, businesses, communities and volunteers we work with for engaging with us, for acknowledging the impact they have, and for considering the potential improvements that they can make for the benefit of everyone who lives, works and visits the Westcountry. For anyone who would like to know more about the charity please visit our website at www.wrt.org.uk. If you would like to get involved and help the charity in any way, please also get in touch as we would love to hear from you.
Charles Huntington-Whiteley Chairman
2
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Objectives and activities**
The purposes of the charity as set out in its governing document are:
- to secure the preservation, protection, development and improvement of the rivers, streams, watercourses, and water impoundments in the Westcountry; and
- to advance the education of the public in the management of water.
Our overarching ambition is to bring our rivers to life, from source to sea, for the benefit of everyone. Our work is driven by the desire to clean up our rivers and ensure that the fisheries, and the habitats and species that support them, are in good health. We believe that the natural environment can sustain and inspire people making us happier and healthier and we endeavour to engage with the public and re-connect them to their local rivers.
We provide a crucial contribution to improving the water environment at a time when the population continues to increase, and we are demanding more from our land and water resources. Flooding, drought, pollution, health scares, high water bills and food security are increasingly featuring in our news and our lives and we believe our enlightened approach can help tackle these challenges and make a real difference to the future of people’s lives in the Westcountry.
In setting our objectives for the future and planning our activities for the coming year, the trustees’ have considered the Charity Commission guidance on public benefit. The primary strategies employed by the charity to further its purposes for the public benefit include:
- bringing about physical improvements to rivers and riparian habitats, including improving the water quality of our rivers;
- driving changes to policy through changing perceptions in education, the public and government. This includes helping to change opinions using evidence and engagement tools so that future policy fosters good environmental management which benefits society overall;
- • being a leading light in the move towards a functioning integrated ecosystems approach that encourages a balanced approach to environmental management and all that it encompasses.
In implementing these strategies, we have three major areas of activity which are: protecting the river; balancing land use; and providing evidence and engaging people. Our activities described below are focussed wholly on achieving these objectives.
## _**Protecting rivers – restoring freshwater habitat and species**_
The primary objective for this area of delivery is to restore freshwater habitats and species. We believe fish populations are a key indicator species of river water quality and we use best science and practical techniques to try and restore our rivers to their former abundance of fish species by improving river habitat, structure and function.
Our approach to fisheries management and improvement is an action focused approach supported by a learning cycle of action, information, and analysis. This includes the following specific activities:
- collaborative working to determine the genetic analysis of fish populations within a river system. Once we know the stock structure of the river, we can manage it with much more confidence and effectiveness.
- identifying the habitat available for fish within the river system. We use fisheries walkover surveys to assess the provision of fish habitat in a river system and to determine its condition. We also identify where barriers or obstacles exist in the river that may act to stop fish accessing those habitats. This helps us to target our work to achieve maximum impact.
- monitor the status of fish populations on rivers. We use a variety of methods to determine the number of fish in a river system including electro fishing surveys, automatic fish counters, fish tagging, and analysis of angler’s catch returns and logbooks.
3
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
- promotion of angling. Anglers have a keen self-interest to ensure our rivers are in a good condition and we aim to harness this via our Westcountry Angling Passport.
The water quality within a river system can have a significant impact on the presence of fish and other species in the catchment and this is where the charity’s fisheries activities are inextricably linked to the charity’s land management activities.
## _**Balancing land use – improving the water leaving the land**_
The primary objective for this area of delivery is to improve the water leaving our land. We believe that if we can determine which pressures are exerting negative impacts on our aquatic ecosystems and identify where they are coming from, then we can develop a programme of tailored and targeted catchment management interventions to remove these sources and disconnect their pollution pathways. This includes increasing the resilience of our catchments using natural flood management interventions to slow water down, hold it in the catchment where beneficial, and ultimately reduce the flood risk to our communities and the risk of excess nutrients and sediment entering the watercourse.
The Westcountry is a predominantly rural landscape and consequently much of our focus has been on working with farmers to improve raw water quality through a collaborative approach which sees landowners informed and assisted in the protection of river catchments. This includes the following specific activities:
- tailored one-to-one advice for farmers. We work with farmers and carry out full farm surveys that culminate in the provision of a farm plan giving the farmer a full evaluation of all aspects of their farm business and highlighting opportunities for them to both save money and help to protect the environment.
- our advice is often supported by a capital grant scheme that helps farmers to invest in onfarm measures that will minimise pollutant loss from their farms.
- promote the use of Payments for Ecosystems Services (PES) as a sustainable and balanced approach to funding environmental management and improvement.
- providing soil management advice and training to encourage farmers and landowners to take action to improve the health of their soils, thereby reducing soil run-off and helping to improve water retention and keep soil on the land where it belongs.
Both the charity and trading subsidiary continue to develop capabilities to deliver advice and guidance on management of the urban water environment.
## _**Engaging people – reconnecting people with their river**_
The primary objective for this area of delivery is to reconnect people with the river and provide evidence to educate the public, and all the sub-groups that this includes, in the importance of looking after our water environment and how this can be achieved.
We believe that education is the key to changing behaviour and that this can best be achieved through the following specific activities:
- provision of robust evidence to support targeted actions. We create, manage, analyse and present spatial evidence of the highest quality to ensure that actions are targeted, integrated and cost efficient. We aim to demonstrate qualitatively and quantitatively that the delivery of integrated catchment management interventions can realise genuine improvements in water quality.
- delivery of education via one-to-one visits with farmers, visits to schools, attendance at shows, presentations at regional and national conferences and even developing international ties with other organisations in order that we can learn from each other on a worldwide scale. We also supervise several work experience posts and MSc student projects as well as cosupervising PhD and research studentships at universities.
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**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
- continued development of partnership working. The charity fully supports partnership working and we are committed to the development of constructive catchment partnerships that can help deliver real environmental improvements on the ground.
- increasing engagement with the public to raise awareness of the charity’s aims and get them involved in monitoring their river environment to increase our on the ground knowledge of catchments. We hope that this will encourage people to reconnect with their river and where necessary, change their behaviours where it will have a positive impact on the water environment.
We believe that by undertaking the activities set out above it will instil in people a responsibility for the environment which will be nurtured in the next generation of land care managers, advisors, policy makers and all those who benefit from the magnificent water environment that we are fortunate to have here in the Westcountry.
## _**Grant-making activities**_
The charity’s grant making policy and activities are largely dictated by the required outcomes of the projects it is involved in, whilst ensuring that grants given will meet the requirements of public benefit. In recent years the Trusts major grant making activities have been under the Upstream Thinking project funded by South West Water. This project aims to improve raw water quality and most grants are given to farmers as a contribution towards capital works on their farm that will support this aim. Potential grant recipients are identified using a combination of farm advisor knowledge and data and evidence collected by the charity. Suggested beneficiaries of grants are discussed and approved by an internal team of farm advisors having consideration to the water quality benefits that are expected to be realised because of completion of the works.
Grants are an important element of delivering the charity’s objectives as the cost of works can be significant and the availability of a grant is a substantial incentive where farmers may not otherwise be able to justify the cost. Furthermore, grants are usually given for a proportion of the total cost of the project and the matching investment by the farmer demonstrates a commitment by the farmer to improved water quality and allows the charity to maximise its impact with less funds.
## _**Our volunteers**_
Usually, each year we host one or more highly competent MSc students who carry out placements ranging from two weeks to three months. In the current year we have supported a PhD student from Bournemouth University, focusing on an Atlantic salmon fish tagging study in the River Teign.
During 2022, our Citizen Science Investigations (CSI) programme saw an influx of sign-ups across all 4 counties. In total 347 volunteers joined us to become Citizen Scientists, taking overall numbers to 1,242 people signed up to the programme. These amazing individuals were responsible for submitting 4,732 surveys throughout 2022, taking the total number to 13,319 since the programme’s inception. We actively delivered 16 training sessions to just under 200 people helping grow the knowledge base further and equip and upskill communities across the Westcountry to collect vital data on waterbody health. The number of Scorecards created has also increased significantly with the amount of data being submitted leading to 127 Scorecards being created, an increase from 80 in 2021.
With the CSI programme increasing so rapidly and public appetite for water quality and environmental action growing, 2023 will see plans developed further and a new volunteer offering created by Westcountry Rivers Trust. This will take the form of the Westcountry Rivers Collective and will provide multiple data collection and volunteer opportunities while increasing the value and usability of the data collected.
5
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Achievements and performance**
The primary objectives for the year were to: continue to be involved in catchment partnerships and promote the partnership approach; promote good soil management and Nature Based Solutions across all of our interactions with farmers and landowners; develop increased awareness of the charity and its activities including our programme of schools visits, workshops, attendance at local events, recruiting Citizen Scientists and expanding the charity’s online and social media presence; expand our delivery both in terms of geographical area to increase our presence in the east of the region, and thematically to increase the range of environmental activities we are able to deliver; increase our involvement in projects aimed at alleviating flood risks within catchments using Natural Flood Management (NFM) techniques; increase the engagement and interest of local businesses and stakeholders in protecting the water environment; bring about physical improvements to rivers and river habitat; and continue to advise and influence policy at a national and international level.
The trustees consider that the charity and trading subsidiary’s activities and achievements in the year have contributed to achieving these objectives and we will continue to pursue this level of delivery going forwards. Details of some of the activities that achieved our objectives are set out below.
- The charity has maintained a leading or supporting role in several catchment partnerships across Devon and Cornwall and remains committed to the future of partnership working and using this approach to deliver environmental improvements. In addition to our CaBA roles within the Westcountry the charity continues to receive funding from The Rivers Trust to provide CaBA support and mentoring across the national network of rivers trusts.
- The charity is delivering soils advice via workshops and one to one farmer visits as a core activity within several of our projects. Good soil management is actively promoted to farmers and landowners via our farm plans,
- The objectives and outputs of one of the charity’s longest running projects (Upstream Thinking) have been revised and expanded as it moves into its third 5-year phase and the focus has been shifted to include both improvements in water quality and biodiversity outcomes by investing in Nature Based Solutions such as wetland and woodland creation. This is a much wider remit than previous phases of the project and represents a more holistic approach to environmental management. It is also a positive step towards businesses taking a stronger role in protecting the environment. Several of our staff undertook training and development in the subject of Nature Based Solutions in preparation for delivering this key project with a new and wider focus and this learning has filtered throughout the organisation and into all of our activities.
- The charity has a multitude of projects that seek to plan and/or deliver physical improvements to the river environment. In the current year the charity has been involved in: commissioning the design of fish passage improvement solutions; commissioning full scale weir removals; and in 2022 the charity delivered the construction phase of a fish pass and smolt chute at Bridgetown weir, River Exe, to improve fish migration for diadromous freshwater fish.
For further details of some of the individual projects we have been delivering please see Note 26 and visit our website at www.wrt.org.uk.
The culmination of all the separate outputs achieved by the charity throughout 2022 (2021 in brackets where available) can be summarised as follows:
River protection including: fencing, planting, revetment, treatment for invasive species.
- 22km of river habitat improvement has taken place, helping to improve biodiversity and water quality (44km)
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**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
Rivers under surveillance including: fish surveys using electro fishing or other methods, chemical or bio-monitoring surveys.
- electrofishing sites 225 (305)
Improved fisheries including: fish pass installation or weir removal, in river habitat manipulation.
- 1 man-made barriers or trash dams in rivers have been eased or removed, ensuring fish can access spawning grounds more easily (2)
- 39km of rivers have been opened (47km)
Improved land management including: areas subject to advice on management, areas where there is evidence of change in practice, areas surveyed in detail.
- 9,582 trees have been planted, helping to improve water quality, habitats, and carbon capture (13,000)
- 190 farms benefited from our assistance to support best practice for farming and nature (219)
- 22 farm infrastructure projects completed (8)
Education, evidence, and engagement including: student placements hosted or funded, number of third parties engaged, social media engagement.
- 1,242 volunteers took part in projects from river clean ups to water quality monitoring (630)
- 37 schools have received visits from the charity to educate them on river focussed environmental activities (5)
- 753 children have been engaged in water-related projects, inspiring them to love water, rivers, and nature (63)
- Social media & website:
- FB: 337 posts (476)
- Insta: 292 posts (396)
- Twitter: 348 posts (513)
- LinkedIn: 100 posts (100)
- YouTube: 32,394 views (45,931) – 1,074 subscribers (189)
- Total visits to website: 90,702 (47,072)
- Press articles: 80 (92)
## **Financial review**
2022 has seen overall income increase by £494k and with the exception of the Water for Growth project, the nature of these projects were focussed primarily on the delivery of advice, non-capital inriver fisheries work and engagement activities i.e. relied on staff resources. This meant that the charity continued to recruit throughout the year and has increased its staffing levels from an average monthly headcount of 60 in 2021 to 73 in 2022.
Reliance on project funding continues to be one of the key financial risks facing the charity. Our major sources of income in the year came from the UST projects (£708k including £189k of restricted income and £519k of unrestricted income), Green Recovery project (£176 including £20k of restricted income and £156k of unrestricted income), Water for Growth (£225k), other European funded projects (£417k), and EA funded projects (£723k).
The charity is involved in several EU funded projects which allows us to develop international partnerships and supports innovative new thinking and approaches to environmental issues at a supra regional level. However, there can be a significant delay between submitting claims for EU projects and receiving payment of the claim. This requires significant working capital to be available to fund these arrears-based projects which can result in a time lapse of c. 9 months between incurring expenditure and receiving payment. Monitoring cash flow and ensuring sufficient availability of working capital is therefore a complex challenge for the charity.
7
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The charity’s wholly owned trading subsidiary, Westcountry Rivers Limited (WRL), had a consistent year and although the results show a small decrease in turnover of £19k from £130k in 2021 to £111k in 2022, however there has been an increase in the surplus achieved of £15k from £9k in 2021 to £24k in 2022.
In developing its ecosystem service activities the subsidiary has focussed on the provision of data and evidence to inform catchment partnerships, land management advice and training, and water quality testing. There has also been a drive to win commercial fisheries work including the protection of eel populations (to meet regulatory requirements for clients), fish re-locations and non-native invasive species river surveys. In this respect there is significant alignment between the activities of the charity and the activities of its trading subsidiary and the overall determination of where a project sits within the group largely comes down to the geographical location of the project’s outputs and activities and the assessment of risk associated with the project. As these activities are actively sought to further the purposes of the charity by capitalising on the experience already gained, as opposed to being a purely fundraising activity, in accordance with SORP 4.54 the charity has analysed the income and expenditure associated with ecosystems service delivery and fisheries management as charitable activities in the consolidated accounts. Details of the breakdown of the subsidiary’s income, expenditure and net assets are provided in note 6 to the accounts and in all other notes the income and expenditure is recorded in the totals for the relevant charitable activity to which it relates. The subsidiary’s profit of £24,232 for the year will be gift aided in full to the charity.
## _**Investment powers and policy**_
The trustees, having regard to the liquidity requirements of the charity as a result of its involvement in several major projects that are funded in arrears, wish to keep available funds in a combination of low risk short term bank deposits and an instant access current account.
In 2022 the trustees reviewed this approach; an internal review of investment risk was carried out and a revised investment policy was implemented.
## _**Reserves policy and going concern**_
Reserves are needed to bridge the gap between expending and receiving income as many of the charity’s projects, particularly the large EU projects, are funded in arrears. The charity can be required to provide cash flow for these projects for up to 6 months under normal operating, but this can increase to more than 12 months following the completion of projects. They also allow the charity to manage the impact of other risks it faces including unplanned costs, growth that requires investment in structures to support increased activity and staff, and unplanned events that cause the charity to cease a notable portion of activity for a prolonged period of time.
From a positive perspective, reserves allow the charity to finance specific activities within its charitable objectives that it cannot otherwise obtain support for from an external funder. Building reserves and reducing reliance on project specific funding will aid the charity to manage its own destiny and to realise its vision as set out in our 5-year plan; to provide a dedicated long-term river officer for every catchment within the charity’s geographical remit.
As a result of the unrestricted reserves that have built up to date the charity will continue to invest in core systems and functions to help manage and enable future growth.
8
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The group’s level of restricted reserves has decreased by £78k from £897k at 31 December 2021 to £819k at 31 December 2022. Of this amount £276k is committed for grant payments to farmers, as set out in Note 26. Delivery of services by the charity, together with the contribution of the trading subsidiary, has enabled the group to build its unrestricted reserves in the current year by £146k from £1,215k at 31 December 2021 to £1,361k at 31 December 2022. The level of unrestricted funds regarded as free reserves, after allowing for funds tied up in tangible and intangible fixed assets, is £1,238k.
Whilst the trustees have not currently put a revised figure on the ideal level of free reserves, the growth of the charity, the need for investment in core support services including increasing our bid writing capacity, and the risks around Brexit, including uncertainty around the future income streams that will replace EU funding, means the trustees consider the current level of reserves to be reasonable to meet the charity’s needs. Furthermore, the charity is expecting to utilise reserves in the near future to ensure we continue to increase our robustness, resilience, and our ability to respond to the changing environment we operate in.
The cash outflow from operating activities of £244k in 2022 is primarily due to the increase in trade receivables at the year end, all recoverable in 2023. In addition to this, in 2021 a receipt of £331k funding in advance for a Horizon 2020 project was received. The remaining cash outflow arises due to net spend across the numerous other projects that the charity is and has delivered throughout the year.
Our consolidated balance sheet remains strong with net current assets of £2,057k. The trustees have reviewed the circumstances of the charity and group and specifically, have considered the worst-case scenario with regards to the impact of Brexit on the charity’s ability to continue as a going concern. The trustees confirm that there are currently no material uncertainties related to the events unfolding and conditions arising as a result of Brexit or any other factor that currently casts significant doubt on the charity’s ability to continue as a going concern and the trustees consider that adequate resources are available to fund the activities of the charity and group for the foreseeable future.
## **Plans for future periods**
Our priorities in the coming year will temper our ambitions to continue expanding delivery both in terms of geographical area, to increase our presence in the east of the region, and thematically to increase the range of environmental activities we deliver, with a need to consolidate our core services and functions. Our focus will be on ensuring the recent growth is sustainable and the core functions of the Trust keep pace with staff numbers and project complexity. This requires investment in the systems, structures and processes at the Trust including the functioning of senior management and the further consolidation of the Leadership Team.
Alongside this our focus in 2023 will also be on increasing our bid writing potential and diversifying our funding sources and specifically, identifying and targeting future funding to replace the gap that will be left as EU funding opportunities decrease. We are particularly keen to increase our involvement in projects aimed at alleviating flood risk within catchments using natural flood management (NFM) techniques but also projects which address drought and water shortages alongside existing water quality and biodiversity projects . We feel our collective skills and experience put us in a unique position to help funders develop and implement this approach to Integrated Catchment Management.
We would like to continue to further capitalise on the skills and experience gained by our Ops team in the current year as they delivered both a weir removal and the installation of NFM features in-house by expanding their capabilities into drought management and working across the whole of our region. By using the Ops team to carry out charity work we were able to truly deliver a cross team approach to enact environmental improvements from start to finish. We would like to promote our ability to deliver holistic solutions that access the entire wealth of knowledge across the charity and believe this is an attractive prospect for potential funders.
9
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
We will continue to be actively involved in catchment partnerships throughout the region and are committed to the future of partnership working but will be expanding our work linked to Citizen Science Investigations. This will include the rapid expansion of volunteers measuring water quality but also helping them form community groups to both expand their monitoring, evaluate and analyse their data, and ultimately form river action groups. We have already seen some of these develop in 2022 and will be encouraging and empowering more communities in 2023.
We would like to continue to raise interest and awareness of the impact that local businesses have on the local water environment and see more people and businesses getting involved in conversation and activities to minimise negative impact. Increasing this engagement and interest, particularly within previously unengaged audiences, will continue to be a focus of our activities.
As the ELMS farm payment scheme formalises, we would also like to embed ourselves in the future delivery of advice and delivery of the physical works required to achieve the objectives. As part of this the charity will be trying to increase its skills and capabilities to deliver advice and actions under the current Countryside Stewardship scheme as well as up and coming opportunities like Biodiversity Net Gain and Nutrient Neutrality.
Brand recognition is improving, particularly within the realms of existing projects that target the public and volunteers, however there is still work to be done but the current interest in water quality and pollution is a strong opportunity to develop our engagement activities and increase support and interest in our cause.
10
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Reference and administrative details**
Charity number: 1135007 Company number: 06545646 Registered office: Rain-charm House, Kyl Cober Parc, Stoke Climsland, Cornwall, PL17 8PH
## _**Our Advisors**_
Auditors: PKF Francis Clark, Sigma House, Edginswell Park, Oak View Close, Torquay TQ2 7FF Bankers: Barclays Bank Plc, The Parade, Liskeard, Cornwall PL14 6AR Solicitors: Wolferstans, 61 North Hill, Mutley Plain, Plymouth PL4 8EP
## _**Directors and trustees**_
The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year-end were as follows:
## **Key Management Personnel: Trustees and Directors**
## _**Chairman of the Trust**_
C Huntington-Whiteley
## _**Chairman of the Finance Committee**_
A Southall
## _**Trustees**_
P Arnott (resigned 12 May 2022) D Butler The Lord Clinton (resigned 12 May 2022) W Darwall Sir Simon Day (resigned 12 May 2022) A Fox-Edwards A Gray G Hart (resigned 12 May 2022) Sir David Hoare Bt (resigned 12 May 2022) Dr K Lancaster D Morris J M Phillips (appointed 12 May 2022) R Simpson (resigned 12 May 2022) I Thompson Dr A Torrance R Whitson W F Wyldbore-Smith
## _**Company Secretary**_
K Sivorn (resigned 8 July 2022) S Howe (appointed 8 July 2022)
## **Key Management Personnel: Reporting Directly to Trustees and Directors**
Chief Executive Officer L Couldrick Finance Director K Sivorn (resigned 5 July 2022) Head of Finance S Howe (appointed 5 July 2022)
11
**WESTCOUNTRY RIVERS TRUST**
**(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Structure, governance, and management**
## _**Governing document**_
Westcountry Rivers Trust is a company limited by guarantee governed by its Memorandum and Articles of Association. The charity is registered as a charity with the Charity Commission.
## _**Appointment of trustees**_
The charity aims to maintain a broadly respected body of trustees with sufficient experience to provide strong governance and to add value to the charity’s decision making.
Historically, the introduction and recruitment of trustees was by recommendation of existing trustees and personal contacts with other organisations or landowners with related environmental or rivers’ trust interests.
During the last few years however, following the identification of some gaps in the diversity and skills matrix of the Trustee Board, the charity has been using a Charity recruitment specialist to specifically target and identify suitable Trustees to fill the gaps, whilst also selecting individuals who will bring with them the same passion and enthusiasm for the charity and its work that the existing Trustees have.
The final power of appointment rests with the trustees in the annual general meeting.
Trustees are appointed for a set term of three years and can serve a maximum of three terms, unless in the extraordinary circumstance when the Board consider it will be to the detriment of the charity for a Trustee to retire at that time. In this case a fourth term may be served. A Trustee who has served for three consecutive terms may be reappointed after an interval of at least three years.
## _**Trustee induction and training**_
Following their appointment each new trustee receives a briefing pack outlining their role and providing information on the duties of a trustee including their legal obligations under charity and company law, a copy of the Articles of Association, a copy of the most recent audited trustees report and financial statements, and the most recent management accounts and board minutes. New Trustees are invited to the charity’s office and the CEO and Head of Finance present some of the key information relating to the charity and its staff and activities. Trustees will have the opportunity to meet other members of the charity’s management team and to shadow charity staff in carrying out their duties, should they so wish.
The trustees are also directed to the charity and subsidiary’s website as a source of further information on the background of the group and all its current activities.
## _**Organisation**_
The full trustee board meet four times a year to consider all aspects of managing the charity including the overall direction of the charity and its future development. One of the meetings includes the annual general meeting of the company. The board receives detailed reports covering delivery and finance from the CEO and Head of Finance, and the trustees receive a verbal update from the Chairman of the Finance Committee.
The Finance Committee meet four times a year and the committee provides a focussed forum for delving into the charity’s finances including all aspects of performance, position, risks, opportunities and threats. The finance committee receive detailed reports covering finance and they monitor the performance of the charity against budgets and targets for the year.
The Board delegates the day to day running of the charity to the CEO, who is supported by a Leadership Team of Directors and Heads. A Scheme of Delegation sets out how the charity makes decisions and how decision making is delegated to the executive team.
12
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## _**Related parties and co-operation with other organisations**_
None of our trustees receive remuneration or other benefit from their work with the charity. Details of trustee expenses and related party transactions are disclosed in notes 15 and 17 to the accounts. Where a trustee might indirectly benefit from improved fish stocks or habitat is incidental.
Any connection between a trustee or employee of the charity with a supplier, beneficiary or partner must be disclosed to the management of the charity. Written confirmation of potential related party relationships and conflicts of interest is obtained from staff on an ongoing basis throughout the year, as and when a connection or conflict arises. All trustee related parties and interests are documented in a Register and this is reviewed on an annual basis. At every meeting trustees are asked to confirm that the Register contains a complete list of their interests and they are asked to declare any known interests arising since their last declaration.
The charity’s wholly owned subsidiary, Westcountry Rivers Limited, provides environmental services as set out in the achievements and performance section above. It is an ethos driven consultancy that gift aids its profits in full to the charity.
The charity works in partnership with several other third sector organisations, government organisations, water companies, universities, and other funders to achieve our charitable objectives. The charity is fully supportive of The Rivers Trust, the umbrella organisation for rivers trusts nationally. The charity’s CEO is also a Trustee and Director of The Rivers Trust and up until March 2022 the charity administered the payroll for The Rivers Trust employees.
## _**Pay policy for senior staff**_
The charity follows the principles of the remuneration pay scale guidelines issued by The Rivers Trust. The charity reviews pay annually and may make selective awards based on performance and a willingness to accept greater responsibility. Cost of living increases are also considered, but the charity is unable to commit to an automatic incremental award for all staff on an annual basis. Pay reviews are carried out by the executive team and a recommendation is made to the finance committee who have the final say on approval of the suggested increases.
## _**Risk management**_
The trustees have a risk management strategy which comprises:
- a comprehensive risk register which is subject to an annual review of the principal risks and uncertainties that the charity and its subsidiary face;
- the establishment of policies, systems, and procedures to mitigate those risks identified in the annual review; and
- the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
Risk is assessed at several levels including identifying risks relevant to the charity and subsidiary overall, and project specific and activity specific risks. All staff receive training to assist in minimising risks to themselves and others, particularly in respect of risks related to fieldwork and health and safety. Insurance cover is reviewed at least annually, and the level of cover is considered adequate for the potential liabilities of the charity.
13
**WESTCOUNTRY RIVERS TRUST**
**(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
The trustees have determined that the principal risks facing the charity and the steps taken to mitigate those risks are as follows:
- Staff: many of our staff undertake lone working which can involve them entering the river and/or walking remote areas of the countryside. Several staff also work in other dangerous situations and/or with dangerous equipment. The charity takes its responsibility for the health and safety of our staff extremely seriously and a detailed policy and procedure is in place including a buddy system and a clear action plan should emergency procedures need to be instigated. Many of the more dangerous activities require specific safety training to be carried out, qualifications achieved, rigorous completion of risk assessments and following a recognised protocol. Staff involved in these activities undertake a significant amount of training and refresher courses to ensure they are on top of the latest developments in safety procedures and have the appropriate kit to keep them and others safe whilst they are at work. H&S breaches would be considered extremely serious due to the nature of their work and the potential for significant injury or death.
- The charity values all its employees and actively pursues a system of ensuring both the career and personal development of staff, including training, staff appraisals and pay and reward policies aligned to the sector.
- The charity has adapted to a post Covid normality, balancing a flexible working environment with the need for maintaining staff rapport and good working relationships.
- cash flow:
- as a result of several of the charity’s major projects being run in arrears careful cash flow management and planning is necessary. The charity aims to mitigate this risk by balancing the range of projects we have between those funded in advance, those funded in arrears and those where a quick turnaround between expenditure and income is expected. Additionally, we engage in continuous financial forecasting and implementing plans to maintain our reserves at or above our target reserves figure.
- income:
- dependency on a few sources of income and/or a significant fall in future income. As a result of the significant levels of funding received from EU sources historically, Brexit is considered a key risk to the charity. In 2022 it has been identified that Brexit has meant the charity is not able to access the new 2021-2027 Interreg programme, however it will still be able to access Horizon Europe funding under the Government’s UK Funding Guarantee.
- The charity has an active team of staff who are continually identifying funding opportunities, meeting regularly to co-ordinate bids and tenders. In late 2022 we recruited a dedicated bid writer to further support and develop this group. Staff are led by senior managers and the outcome of their meetings will promptly identify a decrease in opportunities.
- With close monitoring of the cash flow and internal resource planning systems, the charity is confident it can actively manage this risk and respond to the changing environment in a timely manner.
14
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Trustees responsibilities in relation to the financial statements**
The charity trustees (who are also the directors of Westcountry Rivers Trust for the purposes of company law) are responsible for preparing a trustee’s annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
## **Statement as to disclosure to our auditors**
In so far as the trustees are aware at the time of approving our trustees’ annual report:
- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and
- the trustees have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
By order of the board of trustees on 28th June 2023:
A Southall (Chairman)
15
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WESTCOUNTRY RIVERS TRUST**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Opinion**
We have audited the financial statements of Westcountry Rivers Trust (‘the charitable company’) for the year ended 31 December 2022 which comprise the Group Statement of Financial Activities, Balance Sheet and Consolidated Balance Sheet, Statement of Cash Flows and Consolidated Statement of Cash Flows and notes to the financial statements, including 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 Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and Charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 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 financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
16
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WESTCOUNTRY RIVERS TRUST**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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:
- the information given in the Trustees’ Report (which includes the directors’ report prepared for the purposes of company law), for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity and its 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not obtained all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a strategic report.
## **Responsibilities of the trustees**
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 16, the trustees (who are also the directors of the Charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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.
17
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WESTCOUNTRY RIVERS TRUST**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Auditor’s 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity and the sector in which it operates to identify the key laws and regulations affecting the Charity. The key regulations we identified were Charity legislation, health and safety regulations, employment laws, and The General Data Protection Regulation (GDPR) and Charity Commission requirements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, the Charities Act and the Charities SORP.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any noncompliance with laws and regulations on the Charity’s ability to continue its activities and the risk of material misstatement to the accounts.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations by the charity or its subsidiary that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud.
- Reviewed filings with the Charity Commission and enquired with management whether there were any Serious Incident Reports made during the year of which there were none.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;
-
- Reviewed Board minutes;
- Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business of which there were none.
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
18
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WESTCOUNTRY RIVERS TRUST**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
- Audited a sample of income and expenditure to ensure that it had been allocated to the correct restricted fund.
A further description of our responsibilities is available 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s 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 Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sharon Austen FCCA (Senior Statutory Auditor) PKF Francis Clark Sigma House Oak View Close Edginswell Park Torquay TQ2 7FF
Date:13th July 2023
19
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Note**
**Income from:**
Donations
**4**
Charitable activities
**5**
Other trading activities
**6**
Investments
**7**
Other
**8**
**Total**
**Expenditure on:**
Raising funds
**9**
Charitable activities
**10**
Other
**12**
**Total**
Net (losses) /gains on
investments
**24**
**Net income**
Transfers between funds
**27**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**
**27**|**Unrestricted**
**Funds**
**2022**
**£**
34,773
1,428,300
55,780
2,783
9,513
**1,531,149**
60,054
1,329,546
-
**1,389,600**
(16)
**141,533**
4,675
**146,208**
1,215,218
**1,361,426**|**Restricted**
**Funds**
**2022**
**£**
152,281
1,972,648
-
-
-
**2,124,929**
-
2,198,452
-
**2,198,452**
-
**(73,523)**
(4,675)
**(78,198)**
897,425
**819,227**|**Total**
**Funds**
**2022**
**£**
187,054
3,400,948
55,780
2,783
9,513
**3,656,078**
60,054
3,527,998
-
**3,588,052**
(16)
**68,010**
-
**68,010**
2,112,643
**2,180,653**|**Total**
**Funds**
**2021**
**£**
453,228
2,615,548
77,974
2,842
12,193|
|---|---|---|---|---|
|||||**3,161,785**|
|||||94,955
2,658,402
6,431|
|||||**2,759,788**|
|||||76|
|||||**402,073**
-|
|||||**402,073**
1,710,570|
|||||**2,112,643**|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure is derived from continuing activities.
The notes on pages 23 to 48 form part of these financial statements.
20
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **BALANCE SHEET AND CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022**
|**Note**
**Fixed assets**
Intangible assets
**19**
Tangible assets
**20**
Investments
**21**
**Current assets**
Stock
**22**
Debtors
**23**
Investments
**24**
Cash at bank and in hand
**30**
**Liabilities**
Creditors falling due within one year
**25**
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**The funds of the charity:**
Unrestricted funds
**27**
Restricted funds
**27**
**Total charity funds**|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
1,076
2,253
1,076
122,246
108,004
122,246
-
-
100|**Charity**
**2021**
**£**
2,253
108,004
100|
|---|---|---|
||123,322
110,257
123,422|110,357|
||-
3,200
-
1,887,466
1,455,041
1,886,123
304
320
304
891,662
1,221,359
855,910|3,200
1,454,033
320
1,198,586|
||2,779,432
2,679,920
2,742,337
(722,101)
(677,534)
(720,066)|2,656,139
(673,758)|
||2,057,331
2,002,386
2,022,271|1,982,381|
||2,180,653
2,112,643
2,145,693|2,092,738|
||**2,180,653**
**2,112,643**
**2,145,693**|**2,092,738**|
||1,361,426
1,215,218
1,326,466
819,227
897,425
819,227|1,195,313
897,425|
||**2,180,653**
**2,112,643**
**2,145,693**|**2,092,738**|
The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 if the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 23 to 48 form part of these financial statements.
The financial statements were approved by the trustees on 28th June 2023 and signed on their behalf by:
A Southall Chairman
21
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Note**
**Cash from (used in) operating activities**
**29**
**Cash flows from investing activities**
Interest income
Purchase of tangible fixed assets
**Cash provided by (used in) investing**
**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**|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**|**Charity**
**2021**
**£**|
|---|---|---|
||**(244,556)**
**490,261**
**(257,535)**|**488,939**|
||2,783
2,842
2,783
(87,924)
(69,499)
(87,924)|2,842
(69,499)|
||**(85,141)**
**(66,657)**
**(85,141)**|**(66,657)**|
||(329,697)
423,604
(342,676)
1,221,359
797,755
1,198,586|422,282
776,304|
||**891,662**
**1,221,359**
**855,910**|**1,198,586**|
The notes on pages 23 to 48 form part of these financial statements.
22
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1 Accounting Policies**
The principal accounting policies adopted, judgements made and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
- **a) Basis of preparation of financial statements and assessment of going concern** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 (March 2018)) and the Companies Act 2006.
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern, see Trustees Report for further details.
Westcountry Rivers Trust 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 note.
- **b) Group financial statements**
The financial statements consolidate the results of the charity and its wholly owned subsidiary Westcountry Rivers Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
- **c) Income**
All income, including income from government and other grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Where income is received before the conditions for entitlement are met, it is deferred.
Income from the performance of services is recognised in accordance with the stage of completion as determined by reference to the contract specifications. This can be by milestones delivered, time spent by staff compared to the time budgeted for delivery of the contract or more commonly by costs incurred compared to total expected costs.
## **d) 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 received which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in note 27 to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Transfers between funds are executed for projects which have been completed but have required support from the charity’s unrestricted funds to ensure maximum impact of the project, or where the fund has a remaining surplus. Transfers of a surplus to unrestricted funds only take place with the funders’ consent.
23
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **e) 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. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise the costs of commercial trading including costs of the wholly owned trading subsidiary that do not relate to charitable activities, and their associated support costs.
- Expenditure on charitable activities comprise the costs of delivering projects and educational activities undertaken to further the purposes of the charity and includes some of the activities of the wholly owned trading subsidiary where these are clearly linked to charitable activities but cannot be carried out by the charity directly, usually due to the geographical restriction within the charity’s governing document. It also includes associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Grants payable are included in expenditure in the year in which the offer is made and communicated to the recipient except in those cases where the offer is conditional. Conditional grants are recognised as expenditure when the performance related conditions set out in the grant agreement are fulfilled. Grants offered subject to conditions which have not been met at the year-end, are noted as a commitment, but not accrued in expenditure.
- **f) Employee benefits**
Expenditure on redundancy payments and other termination benefits are recognised once there is a legal or constructive obligation to make a payment to an employee, it is probable that the employment will be terminated and settlement will be required, and the amount of the obligation can be measured reliably.
## **g) Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll, and governance costs which support the charity’s delivery of projects and activities. These costs have been allocated between costs of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 13.
- **h) Operating leases**
Rental charges under operating leases are charged on a straight-line basis over the term of the lease.
## **i) Intangible assets**
Intangible assets relate to the purchase of timesheet and expenses software. Intangible assets are capitalised at cost and are amortised over their estimated useful economic life as follows:
Software
25% straight line
The amortisation rate reflects the charity’s assessment of the period over which economic benefits will flow to the charity as a result of reduced staff time costs before the software will face significant risk of technological obsolescence.
24
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **i) Intangible assets (cont.)**
All assets are examined annually for potential impairment and any material reductions in value are recorded and the asset written down at the year-end.
## **j) Tangible fixed assets**
Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives as follows:
Furniture, fittings and equipment 25-33% straight line / 50% reducing balance
All assets are examined annually for potential impairment and any material reductions in value are recorded and the asset written down at the year-end.
## **k) Stock**
Stock is included at the lower of cost or net realisable value.
## **l) Debtors**
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is recognised where the criteria for recognising income has been met at the year-end but the claim or invoice has not been submitted/issued until after the year-end.
The charity and trading subsidiary undertake the delivery of multiple projects that span several months and can cross the year-end. Amounts recoverable on contracts are recognised based on their stage of completion and measured at cost plus profit to the extent that such profit is reasonably certain and after making provision for any foreseeable losses in completing contracts, less payments on account received.
## **m) Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation throughout the year.
Investments in subsidiaries are valued at cost less provision for impairment.
## **n) Cash at bank and in hand**
Cash at bank and cash in hand includes cash held in current and savings accounts in UK banking institutions and short term highly liquid investments with a maturity of three months or less from the date of deposit.
## **o) Creditors**
Creditors are recognised where the charity 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 are normally recognised at their settlement amount after allowing for any trade discounts due. Creditors are discounted to their present value where they are due after more than 12 months and where the impact of discounting is material.
## **p) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
25
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **q) Pensions**
The charity operates a defined contribution pension scheme and membership is open to all employees of the charity and its trading subsidiary. The assets of the scheme are held separately from those of the charity. The charity matches employee contributions of 6% with an employer contribution of 9% and the contributions are paid into the fund monthly. The contributions made for the accounting period are treated as an expense and were £111,818 (2021: £99,923). Contributions totalling £nil (2021: £15,233) were payable to the fund at the balance sheet date.
## **r) Funds received as Agent**
In the current and previous year, the charity has acted as agent in administering the payroll of The Rivers Trust. The receipts from The Rivers Trust are not recognised as income and the payments to employees and HMRC are not recognised as expenditure in the Statement of Financial Activities. Details of the payroll receipts and payments are set out in note 32.
## **s) Foreign currencies**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains are recognised as other income in the Statement of Financial Activities and exchange losses are recognised as a support cost and allocated as set out in g) above.
## **t) Classification of income and expenditure of the wholly owned trading subsidiary**
The charity’s trading subsidiary provides a number of services focussed on using the skills and experience developed in the charity to promote ecosystem services nationally and support delivery of the charity’s objectives on a national scale. These activities are actively sought to further the purposes of the charity rather than a purely fundraising activity. Charities SORP (FRS 102) states that activities undertaken by a subsidiary that fall within a parent charity’s purposes should be analysed as charitable activities in the consolidated financial statements.
The trustees believe that this classification reflects the true impact that the charity and the group has in achieving its charitable objectives and that information presented in this way is more relevant to assessing the charity’s activities and achievements.
All income and expenditure derived from charitable activities carried out by the trading subsidiary have been included within income from/expenditure on charitable activities, see note 6 for details.
## **2 Legal status of the Trust**
The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The Trust is incorporated in England and Wales.
26
**WESTCOUNTRY RIVERS TRUST**
**(A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **3 Financial performance of the charity**
The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary which provides an array of environmental consultancy services.
The summary financial performance of the charity alone is:
|Income
Management charge to subsidiary company
Gift aid from subsidiary company
Expenditure
Net (loss)/gain on investments
**Net income/(expenditure)**
Total funds brought forward
**Total funds carried forward**
Represented by:
Unrestricted income funds
Restricted income funds|**2022**
**£**
3,544,607
7,200
9,174
3,560,981
(3,508,010)
(16)
(3,508,026)
**52,955**
2,092,738
**2,145,693**
1,326,466
819,227
**2,145,693**|**2021**
**£**
3,031,075
7,200
10,475|
|---|---|---|
|||3,048,750
(2,645,452)
76|
|||(2,645,376)
**403,374**
1,689,364|
|||**2,092,738**|
|||1,195,313
897,425|
|||**2,092,738**|
## **4 Income from donations**
Income from donations and non-performance related grants was £187,054 (2021: £453,228) of which £34,773 was unrestricted (2021: £149,896) and £152,281 restricted (2021: £303,332).
Government grants received in the year and included in income from donations above amount to £42,500 (2021: £108,796). Government grants were received from the Environment Agency. Further details of the nature and amount of government grants recognised in the accounts are included in note 27.
As noted in the trustees report the charity benefits notably from the involvement and enthusiastic contributions of volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.
27
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **5 Income from charitable activities**
|Protecting rivers
Balancing land use
Engaging people
**Total income from charitable activities**|**2022**
**£**
1,206,079
1,439,941
754,928
**3,400,948**|**2021**
**£**
661,900
1,489,070
464,578|
|---|---|---|
|||**2,615,548**|
Income from charitable activities was £3,400,948 (2021: £2,615,548) of which £1,428,300 was unrestricted (2021: £1,068,851) and £1,972,648 restricted (2021: £1,546,967).
Included within unrestricted income from charitable activities above is income generated by the subsidiary from charitable activities of £55,692 (2021: £52,736). Further details of the trading subsidiary’s operations and results are included in note 6.
Government grants received in the year and included in income from charitable activities above amount to £1,607,772 (2021: £1,263,419). Government grants were received from the Environment Agency (£723,819), the European Union (£642,133), Natural England (£2,147), Defra (£130,475) and Devon County Council (£109,198). Further details of the nature and amount of government grants recognised in the accounts are included in note 27.
## **6 Income earned from other trading activities**
The wholly owned trading subsidiary Westcountry Rivers Limited is incorporated in the United Kingdom (company number 3090310) and pays all its profits to the charity under the gift aid scheme. Westcountry Rivers Limited provides environmental consultancy services that both directly further the charitable purposes of the charity or otherwise complement the charity’s activities through its provision of ecological services. A summary of the trading results is shown below.
|Turnover
Cost of sales
Gross profit
Administration costs (incl. management charge)
**Net profit**|**Charitable**
**Activities**
**Other**
**Trading**
**Activities**
55,692
55,780
(26,636)
(44,896)|**2022**
**£**
**2021**
**£**
111,472
130,710
(71,532)
(100,397)|
|---|---|---|
|||39,940
30,313
(15,711)
(21,139)|
|||**24,229**
**9,174**|
28
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6 Income earned from other trading activities (cont.)**
|Opening capital and reserves
Net profit for the year
Distribution: donation gift aided to the charity
**Closing capital and reserves**
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
**Total net assets**
**Share capital and reserves**|**2022**
**£**
**2021**
**£**
19,905
21,206
24,229
9,174
(9,174)
(10,475)|
|---|---|
||**34,960**
**19,905**|
||80,726
56,977
(45,766)
(37,072)|
||**34,960**
**19,905**|
||**34,960**
**19,905**|
The charity’s subsidiary company provides a number of services that are in furtherance of the charity’s objectives but that cannot be carried out by the charity due to the geographical restriction within the charity’s governing document limiting its area of operation to the West Country. These services cover all the charity’s charitable activities and in accordance with SORP (FRS 102) income and expenditure from the provision of these services has been included within unrestricted income from/expenditure on charitable activities in the consolidated financial statements.
## **7 Investment income**
All the group’s investment income of £2,783 (2021: £2,842) arises from money held in interest bearing deposit accounts.
## **8 Other income**
|Coronavirus Job Retention Scheme grant
Other income
**Total other income**|**2022**
**£**
-
9,513
**9,513**|**2021**
**£**
4,958
7,235|
|---|---|---|
|||**12,193**|
The corresponding costs of staff furloughed in the year have been included in other expenditure and are set out in note 12.
29
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **9 Analysis of expenditure on raising funds**
|Commercial trading operations
Salaries and other staff costs
Support costs
**Total expenditure on raising funds**|**2022**
**£**
53,405
-
6,649
**60,054**|**2021**
**£**
82,812
1,306
10,837|
|---|---|---|
|||**94,955**|
## **10 Analysis of expenditure on charitable activities**
## **Current Year**
|Protecting rivers
Balancing land use
Engaging people
**Total**|**Activities**
**Undertaken**
**Directly**
**£**
**Grant**
**Funding of**
**Activities**
**£**
**Support**
**Costs**
**£**
**Total**
**2022**
**£**
1,204,623
9,121
216,549
1,430,293
794,906
255,110
221,743
1,271,759
620,021
17,500
188,425
825,946|
|---|---|
||**2,619,550**
**281,731**
**626,717**
**3,527,998**|
## **Previous Year**
|Protecting rivers
Balancing land use
Engaging people
**Total**|**Activities**
**Undertaken**
**Directly**
**£**
**Grant**
**Funding of**
**Activities**
**£**
**Support**
**Costs**
**£**
**Total**
**2021**
**£**
605,672
8,988
218,806
786,435
835,827
142,765
216,749
1,195,341
519,113
15,000
142,513
676,626|
|---|---|
||**1,960,612**
**166,753**
**531,037**
**2,658,402**|
Expenditure on charitable activities was £3,527,998 (2021: £2,658,402) of which £1,329,546 was unrestricted (2021: £1,063,405) and £2,198,452 was restricted (2021: £1,594,997).
Included within unrestricted expenditure on charitable activities above is expenditure incurred by the subsidiary on charitable activities of £26,636 (2021: £31,524). Further details of the trading subsidiary’s operations and results are included in note 6.
30
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **11 Analysis of grants**
## **Grants to individuals**
|Balancing land use
Engaging people
**Total**|**Total**
**2022**
**£**
**Number of**
**grants**
**2022**
**Total**
**2021**
**£**
**Number of**
**grants**
**2021**
241,052
10,000
22
1
142,765
-
21
-|
|---|---|
||**251,052**
**23**
**142,765**
**21**|
## **Grants to organisations**
|Balancing land use
Protecting rivers
Engaging people
**Total**|**Total**
**2022**
**£**
**Number of**
**grants**
**2022**
**Total**
**2021**
**£**
**Number of**
**grants**
**2021**
14,058
2
-
-
9,121
1
8,988
1
7,500
1
15,000
2|
|---|---|
||**30,679**
**4**
**23,988**
**3**|
Recipients of institutional grants in the current year were partner organisations with whom the charity works closely, in order that they can carry out activities directly.
## **12 Other expenditure**
Expenditure on other was £nil (2021: £6,431) and consists of staff costs associated with furloughing employees under the Coronavirus Job Retention Scheme (CJRS).
31
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **13 Analysis of governance and support costs**
The charity initially identifies the cost of its support functions. It then identifies those costs which relate to the governance function. Having identified these costs, the support costs together with the governance costs are apportioned between the three key charitable activities undertaken in the year (see note 10). Support costs are not allocated to grant making specifically as all grant making is undertaken within the remit of specific projects and therefore the key driver of grant making activities is the time spent by staff delivering the projects that form part of each charitable activity. All support costs are allocated based on the direct labour hours charged by staff to each activity in the year. The analysis of support costs is as follows:
## **Current Year**
|Salaries and other staff costs
Travel and subsistence
Professional fees
Finance costs and exchange losses
Office costs
Communication and engagement
Depreciation and amortisation
Other costs
Governance
**Total**|**Raising**
**Funds**
**£**
**Protecting**
**rivers**
**£**
**Balancing**
**land use**
**£**
**Providing**
**evidence &**
**engaging**
**people**
**£**
**Total**
**2022**
**£**
4,089
133,160
136,354
115,867
389,470
73
2,369
2,426
2,061
6,929
120
3,912
4,006
3,404
11,442
(75)
(2,428)
(2,486)
(2,111)
(7,100)
994
32,376
33,152
28,171
94,693
4
141
144
122
411
783
25,506
26,118
22,194
74,601
413
13,453
13,776
11,706
39,348
248
8,060
8,253
7,013
23,574|
|---|---|
||**6,649**
**216,549**
**221,743**
**188,427**
**633,368**|
## **Previous Year**
|Salaries and other staff costs
Travel and subsistence
Professional fees
Finance costs and exchange losses
Office costs
Communication and engagement
Depreciation and amortisation
Other costs
Governance
**Total**|**Raising**
**Funds**
**£**
**Protecting**
**rivers**
**£**
**Balancing**
**land use**
**£**
**Providing**
**evidence &**
**engaging**
**people**
**£**
**Total**
**2021**
**£**
5,813
92,134
116,257
76,439
290,643
25
392
495
325
1,237
196
3,101
3,913
2,573
9,783
720
11,413
14,401
9,469
36,003
1,579
25,029
31,582
20,765
78,955
2
38
47
31
118
1,106
17,531
22,120
14,545
55,302
979
15,523
19,588
12,879
48,969
417
6,614
8,346
5,487
20,864|
|---|---|
||**10,837**
**171,775**
**216,749**
**142,513**
**541,874**|
32
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14 Net income/(expenditure) for the year**
This is stated after charging/(crediting):
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Operating lease payments|29,189|22,869|
|Amortisation|1,177|1,175|
|Depreciation|73,426|54,127|
|Exchange (gains)/losses recognised|(12,730)|35,197|
|Auditors remuneration:|||
|Audit fees|13,920|11,200|
|Accountancy and tax services|675|750|
|First Level Controller services|18,405|8,370|
## **15 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
|Salaries
Social security costs
Pension costs|**2022**
**£**
1,892,611
179,357
111,818
**2,183,786**|**2021**
**£**
1,594,718
144,987
99,923|
|---|---|---|
|||**1,839,628**|
One employee had employee benefits in excess of £60,000 (2021: one) falling within the following bands:
|||**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
|£70,000|- £79,999|1|1|
Pension costs are allocated to funds and activities in proportion to the related staffing costs incurred.
The charity trustees were not paid nor did they receive any other benefits from employment with the charity or its subsidiary in the year (2021: £nil). No trustee received re-imbursement for travel expenses in the current year (2021:£nil) No gifts were given to Trustees in the current year (2021: none). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).
33
**WESTCOUNTRY RIVERS TRUST**
**(A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **15 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (cont.)**
The key management personnel of the group comprise the trustees, the Chief Executive Officer, and the Head of Finance. The total employee benefits of the key management personnel of the group were £157,517 (2021: £140,008).
During the year no termination payments were made to staff who ceased employment (during 2021 one employee of the charity ceased employment and the charity made a termination payment to this employee amounting to £25,000, in addition to a payment in lieu of three months’ notice amounting to £10,863).
The charity pays an insurance premium to indemnify trustees and senior staff from any loss arising from the neglect or default of trustees or staff and any consequent loss.
## **16 Staff numbers**
The average monthly head count was 73 staff (2021: 60) and staff were engaged in the activities of the group as follows:
|Trading
Project delivery staff
Core support staff|**2022**
**£**
1
61
11
**73**|**2021**
**£**
2
50
8|
|---|---|---|
|||**60**|
## **17 Related party transactions**
The trustees have considered related parties and have identified the following transactions requiring disclosure:
- Polly Couldrick, wife of the CEO, is employed by the charity on a zero hours contract.
- During the year William Wyldbore-Smith, a trustee, commissioned the charity to deliver habitat improvement works on property owned by him and his family and for which he will receive CSF funding. The works were planned and managed by the charity in line with other similar works and were carried out on an arm length basis. The charity received £31,900 from the trustee during the year for this work.
- In 2019 Clinton Devon Estate received approval from Defra for their application to carry out an 'Environmental Land Management’ scheme (ELMs) trial on their Estate. An employee of the charity assisted the Estate with their application and has had a continuing role within the trial to provide 200 days of management and support to the Estate throughout the trial. The Estate is owned by Lord Clinton and his family. Lord Clinton was a Trustee of the charity (retired May 2022). The Trial is being managed by the Estate office independently of Lord Clinton. The transactions are carried out on an arm’s length basis and are within the normal course of activity for the charity. The total value of transactions in the year was £nil (2021: £21,510) and at the year-end the balance owed to the charity by Clinton Devon Estate was £nil (2021: £nil).
34
**WESTCOUNTRY RIVERS TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **(A Company Limited by Guarantee)**
## **17 Related party transactions (cont.)**
- As part of the PROWater project Nature Based Solutions features (tree planting, wetland enhancement) will be installed on several Clinton Devon Estate (CDE) farms in the Otter catchment. A Memorandum of Understanding has been signed with CDE to ensure maintenance of the features for 5 years. This activity is being managed by the Estate office independently of Lord Clinton and is largely taking place on tenanted farms. Activity is within the normal course of activity for the Trust and the transactions are carried out on an arm’s length basis. There were no cash transactions associated with these activities.
## **18 Corporation tax**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **19 Intangible assets**
|Cost:
As at 1 January 2022
Additions
Disposals
As at 31 December 2022
Amortisation:
As at 1 January 2022
Charge for the year
On disposals
As at 31 December 2022
Net book value:
As at 1 January 2022
As at 31 December 2022|**Group**
**Software**
**£**
5,878
-
-
5,878
3,625
1,177
-
4,802
2,253
1,076|**Charity**
**Software**
**£**
5,878
-
-|
|---|---|---|
|||5,878|
|||3,625
1,177
-|
|||4,802|
|||2,253|
|||1,076|
35
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **20 Tangible fixed assets**
|Cost:
As at 1 January 2022
Additions
Disposals
As at 31 December 2022
Depreciation:
As at 1 January 2022
Charge for the year
On disposals
As at 31 December 2022
Net book value:
As at 1 January 2022
As at 31 December 2022|**Group**
**Furniture,**
**Fittings &**
**Equipment**
**£**
426,997
87,924
(6,724)
508,197
318,993
73,426
(6,468)
385,951
108,004
122,246|**Charity**
**Furniture,**
**Fittings &**
**Equipment**
**£**
426,935
87,924
(6,724)|
|---|---|---|
|||508,135|
|||318,931
73,426
(6,468)|
|||385,889|
|||108,004|
|||122,246|
## **21 Fixed asset investments**
The charity holds 100 shares of £1 each in its wholly owned trading subsidiary company Westcountry Rivers Limited which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The activities and results of the trading subsidiary are summarised in note 6. The registered office of Westcountry Rivers Limited is Rain-Charm House, Kyl Cober Parc, Stoke Climsland, Cornwall, PL17 8PH.
## **22 Stock**
|Trees for planting|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
**Charity**
**2021**
**£**
-
3,200
-
3,200|
|---|---|
||**-**
**3,200**
**-**
**3,200**|
36
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
## **23 Debtors**
|Trade debtors
Other debtors
Prepayments and accrued income
Amount due from subsidiary undertaking|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
**Charity**
**2021**
**£**
7,225
18,775
-
-
616,515
143,840
615,762
143,840
1,263,726
1,292,426
1,226,730
1,276,997
-
-
43,631
33,196|
|---|---|
||**1,887,466**
**1,455,041**
**1,886,123**
**1,454,033**|
## **24 Current asset investments**
|Market value as at 1 January
Unrealised gain/(loss) on revaluation
Market value as at 31 December|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
**Charity**
**2021**
**£**
320
244
320
244
(16)
76
(16)
76|
|---|---|
||**304**
**320**
**304**
**320**|
Investments are carried at their fair value. Investments consist of equities traded on the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value, by reference to the London Stock Exchange website.
## **25 a)Creditors: amounts falling due within one year**
|Trade creditors
Other creditors
Accruals
Deferred Income (Note 25b)
Payments received on account for contracts
Social security and other taxes|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
**Charity**
**2021**
**£**
107,472
85,486
107,356
85,350
(103)
15,307
(3)
15,407
108,923
54,607
106,904
50,867
300,462
324,598
300,462
324,598
72,132
50,475
72,132
50,475
133,215
147,061
133,215
147,061|
|---|---|
||**722,101**
**677,534**
**720,066**
**673,758**|
37
**WESTCOUNTRY RIVERS TRUST**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **(A Company Limited by Guarantee)**
## **b) Deferred Income**
|Amounts deferred at 31 December 2021
Amounts released in year
Amounts deferred in the current year
Amounts deferred at 31 December 2022|**£**
324,598
(87,586)
63,450|
|---|---|
||**300,462**|
Project income received in advance is deferred until the related project expenditure has been incurred.
## **26 Grant Commitments**
The charity entered into a number of grant agreements during the year that have not been recognised as a liability in these accounts. These funding commitments are made to farmers as part of the SWW Upstream Thinking project. The charity enters into grant agreements to fund a proportion of the total value of capital works being undertaken by the farmer to improve raw water quality. No grant is payable unless the capital works are completed in full and in accordance with the approved works set out in the grant agreement. Once the commitment has been made, the timeframe for it to be realised is variable depending on the scale of the capital works undertaken. The charity generally expects commitments to be realised within one year of being made.
Grant commitments are funded by South West Water within the scope of the SWW Upstream Thinking project and Green Recovery project. All income to meet grant commitments and subsequent expenditure representing grant payments to farmers are separately recognised in a restricted fund (note 27). At the year-end the charity had grant commitments equal to the restricted fund balance of £275,945 (2021: £318,973).
38
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **27 Analysis of charitable funds: Analysis of movements in unrestricted funds**
||**Balance at**|||||**Balance at**|
|---|---|---|---|---|---|---|
||**1 January**|**Incoming**|**Resources**||**Gains/**|**31 December**|
||**2022**|**resources**|**expended**|**Transfers**|**(losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**General fund**|**1,215,218**|**1,531,149**|**(1,389,600)**|**4,675**|**(16)**|**1,361,426**|
## **Analysis of charitable funds: Analysis of movements in restricted funds**
||**Balance at**|||||**Balance at**|
|---|---|---|---|---|---|---|
||**1 January**|**Incoming**|**Resources**||**Gains/**|**31 December**|
||**2022**|**resources**|**expended**|**Transfers**|**(losses)**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|ARSINOE*|-|12,636|(12,546)|-|-|90|
|Bridgetown Weir – capital works*|-|113,185|(231,349)|130,000|-|11,836|
|CaBA South Devon*|7,304|15,000|(13,392)|-|-|8,912|
|CaBA Tamar*|10,328|15,000|(20,044)|-|-|5,284|
|Chalkstream Projects*|-|52,820|(52,899)|79|-|-|
|CastCo|-|51,011|(12,177)|-|-|38,834|
|Climate Resilience Catchments –
Bude|279|9,820|(10,571)|472|-|-|
|CPES*|-|21,530|(26,948)|5,418|-|-|
|Dartmoor Headwaters NFM*|8,985|-|(2,424)|-|-|6,561|
|Deer Project|16,358|-|(2,487)|-|-|13,871|
|Defra Woodlands for Water*|452|59,942|(60,394)|-|-|-|
|Devon and Cornwall Soils Alliance*|-|249,858|(119,858)|(130,000)|-|-|
|Environmental Investment Fund
(previously CPES Donations)|17,493|-|-|-|-|17,493|
|Educational activities|-|1,403|(5,151)|5,220|-|1,472|
|Exe Phase 3 – General|58,370|7,420|(8,448)|(3,000)|-|54,342|
|Farm Net Zero|-|21,361|(21,361)|-|-|-|
|Fisheries Improvement Programme
Projects*|10,845|48,866|(34,754)|111|-|25,068|
|Frome & Piddle|10,401|-|-|-|-|10,401|
|Future Visions*|13,017|12,500|(24,829)|-|-|688|
|Bokkidick Wet Woodland
Restoration*|-|10,913|(10,977)|64|-|-|
|CSI Fal & Par Water Quality
Testing*|-|5,591|(5,640)|49|-|-|
|Molinnis Nature Recovery*|-|35,535|(35,471)|(64)|-|-|
|Green Match Fund|-|5,093|-|-|-|5,093|
|Plymouth River Keepers|144,296|-|(77,508)|-|-|66,788|
|Preventing Plastic Pollution*|-|135,830|(133,188)|-|-|2,642|
|PROWater*|-|66,079|(66,079)|-|-|-|
|Rapid Response Catchments*|-|109,198|(107,476)|-|-|1,722|
|Risk Aqua Soil*|-|18,632|(18,542)|-|-|90|
|River Clyst Improvements|25,000|-|-|-|-|25,000|
|River Taw Electrofishing|-|6,800|-|(6,800)|-|-|
|River Wolf Improvements|20,000|-|(7,444)|(2,000)|-|10,556|
|**Total carried forward**|**343,128**|**1,086,023**|**(1,121,957)**|**(451)**|**-**|**306,743**|
39
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Total Brought Forward**
Rivers Trust – Collaborative
Fisheries Monitoring*
Somerset Brue Water Resources
CSI
StARR*
Strategic Exe Weirs
SWW Upstream Thinking Grants
SWW Green Recovery Grants
Teign Restoration
Taw Spawning Improvements
TransformAR*
Triple-C*
Water Environment Improvement
Fund Projects*
Water for Growth*
Westcountry Angling Passport
Womens Angling
WRAP – Wetland Restoration
Project*
Other funds
**Total**|**Balance at**
**1 January**
**2022**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Gains/**
**(losses)**
**£**
**Balance at**
**31 December**
**2022**
**£**
**343,128**
**1,086,023**
**(1,121,957)**
**(451)**
**-**
**306,743**
-
13,800
(3,344)
-
-
10,456
-
5,957
(5,933)
8
-
32
-
54,342
(54,342)
-
-
-
60,287
54,070
(69,481)
3,353
-
48,229
318,973
189,306
(252,335)
-
-
255,944
-
20,000
-
-
-
20,000
-
10,131
(7,631)
(2,500)
-
-
-
10,156
(456)
(9,700)
-
-
-
87,585
(85,952)
-
1,633
-
46,441
(46,441)
-
-
-
51,177
286,957
(261,779)
655
-
77,010
67,449
225,085
(228,211)
394
-
64,717
-
16,237
(24,044)
7,807
-
-
8,961
-
(8,331)
-
-
630
-
13,674
(13,674)
-
-
-|
|---|---|
||47,450
5,165
(14,541)
(4,241)
-
33,833|
||**897,425**
**2,124,929**
**(2,198,452)**
**(4,675)**
**-**
**819,227**|
In the current year 4 projects that had been disclosed separately in the previous year, have been included in ‘Other funds’ in the table above due to falling below the Trusts’ threshold for material funds requiring disclosure. These are identified by a º next to the fund name in the comparatives table below.
Additionally, there is one project that had been included in ‘Other funds’ in the previous year, but due to exceeding the Trusts’ threshold for material funds requiring disclosure in the current year, have been shown separately in the current year. These are identified by a ᶳ next to the fund name in the table above.
These are the reasons for the difference in the ‘Balance at 1 January 2022’ for Other funds.
40
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
**27 Analysis of charitable funds: Analysis of movements in unrestricted funds (previous year)**
||**Balance at**|||||**Balance at**|
|---|---|---|---|---|---|---|
||**1 January**|
**Incoming**|**Resources**||**Gains/**|
**31 December**|
||**2021**|
**resources**|**expended**|**Transfers**|**(losses)**|
**2021**|
||**£**|
**£**|**£**|**£**|**£**|
**£**|
|**General fund**|**1,095,520**|
**1,311,756**|**(1,164,791)**|**(27,343)**|**76**|
**1,215,218**|
|**Analysis of charitable funds: Analysis of**||**movements**|**in restricted funds (previous**|||**year)**|
|CaBA South Devon*
CaBA Tamar*
Climate Resilience Catchments –
Bude ᶳ
Cow to Catchment*º
CPES*
Dartmoor Headwaters NFM*
Deer Project
Defra Woodlands for Water*
Devon and Cornwall Soils Alliance*
Environmental Investment Fund
(previously CPES Donations)
Exe Phase 3 – General
Farm Net Zero
Fisheries Improvement Programme
Projects*
Frome & Piddle
Frome Enforcement Undertakingº
Future Visions*
Molinnis Nature Recovery*
Killerton House Green Recovery
Morrisons Soil Carbonº
Plymouth River Keepers
Postcode Local Trustº
Preventing Plastic Pollution*
PROWater*
River Clyst Improvements
River Taw Electrofishing ᶳ
**Total carried forward**|**Balance at**
**1 January**
**2021**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Gains/**
**(losses)**
**£**
**Balance at**
**31 December**
**2021**
**£**
14,819
15,000
(22,515)
-
-
7,304
13,716
15,000
(18,388)
-
-
10,328
-
17,810
(17,531)
-
-
279
46,520
26,796
(70,987)
19
-
2,348
-
110,156
(113,811)
3,655
-
-
-
38,857
(29,872)
-
-
8,985
17,945
-
(1,587)
-
-
16,358
-
11,446
(10,994)
-
-
452
-
116,873
(116,873)
-
-
-
34,530
-
(17,037)
-
-
17,493
50,999
6,343
-
-
-
57,342
-
8,509
(8,509)
-
-
-
4,959
66,835
(60,984)
35
-
10,845
10,401
-
-
-
-
10,401
10,000
-
(8,590)
-
-
1,410
-
47,000
(33,983)
-
-
13,017
-
12,464
(12,464)
-
-
-
-
55,079
(55,079)
-
-
-
-
10,000
(7,189)
-
-
2,811
223,249
-
(78,953)
-
-
144,296
15,209
-
(14,815)
-
-
394
-
129,581
(129,581)
-
-
-
-
68,001
(69,433)
1,432
-
-
-
25,000
-
-
-
25,000
-
-
(7,354)
7,354
-
-|
|---|---|
||**442,347**
**780,750**
**(906,529)**
**12,495**
**-**
**329,063**|
41
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Total brought forward**
River Wolf Improvements
StARR*
Strategic Exe Weirs
SWW Upstream Thinking Grants
Taw Spawning Improvements
TransformAR*
Triple-C*
Water Environment Improvement
Fund Projects*
Water for Growth*
Westcountry Angling Passport
Womens Angling
Other funds
**Total**|**Balance at**
**1 January**
**2021**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Gains/**
**(losses)**
**£**
**Balance at**
**31 December**
**2021**
**£**
442,347
780,750
(906,529)
12,495
-
329,063
-
20,000
-
-
-
20,000
-
30,464
(30,464)
-
-
-
30,000
104,213
(58,557)
(15,369)
-
60,287
46,224
365,033
(94,684)
2,400
-
318,973
515
-
(9,461)
8,946
-
-
-
5,942
(5,942)
-
-
-
-
49,303
(49,303)
-
-
-
66,182
167,996
(184,167)
1,166
-
51,177
-
256,539
(189,100)
10
-
67,449
3,797
17,384
(23,705)
2,524
-
-
-
9,950
(989)
-
-
8,961
25,985
42,455
(42,096)
15,171
-
41,515|
|---|---|
||**615,050**
**1,850,029**
**(1,594,997)**
**27,343**
**-**
**897,425**|
Included within restricted funds are several activities funded by government grants as identified by an asterisk *.
## **Description, nature, and purposes of restricted funds**
*ARSINOE – is a Horizon 2020 funded project aimed at creating climate resilient-regions through systemic solutions and innovations, building an ecosystem for climate change adaptation solutions. The Trust is one of nine demonstrators, showcasing its applicability, replicability, potential and efficacy.
*Bridgetown Weir – capital works – is part of the Strategic Exe Weirs programme to help restore salmon populations in the catchment. The Bridgetown weir works is the construction phase delivery of a fish pass and smolt chute at Bridgetown weir (River Exe) to improve fish migration for diadromous freshwater fish.
*CaBA – the Catchment Based Approach brings people together to decide what they want from our river catchments and the best and most sustainable way to use, manage, and pay for our valuable local resources. The charity is hosting two catchments, Tamar and South Devon (in the previous year we also hosted North Devon), and will, together with the catchment partnership be developing an action plan to manage our shared resources.
CastCo – a project funded through Ofwat’s Water Breakthrough Challenge, which aims to test a proof of concept for a novel collaborative approach to catchment monitoring, modelling and data sharing.
*Chalkstream projects – this is a group of projects funded by the Environment Agency aimed at supporting river improvements and maintaining or improving the WFD (Water Framework Directive) classifications.
42
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **27 Analysis of charitable funds (cont.)**
Climate Resilience Catchments – Bude – multi partner project funded by The National Community Lottery Fund in which the charity’s role is to carry out a climate focussed catchment risk/resilience assessment in order to understand which areas within the Bude Community Network Area will be at greatest risk from climate change, and what specific pressures could cause those risks to be realised.
*Cow to Catchment – project funded by Innovate UK to set up a remote monitoring network across a small test catchment based around Duchy College and other farms. The project aims to develop a prototype low cost, low energy probe that can measure water quality and quantity data in all streams and tributaries in real time. Development of the network aims to create an affordable and sustainable way for the charity to monitor the state of our rivers in real time in order that we can respond and target interventions accordingly.
*CPES – Channel Payments for Ecosystem Services is an Interreg funded project aimed at developing the business case for alternative sectors to pay for environmental restoration. The project will be working with businesses within two study areas, including a lake receptor and an estuary receptor, to understand the individual and collective benefits of improving water quality and quantity.
*Dartmoor Headwaters NFM – project to deliver Natural Flood Management interventions within the Walkham Catchment, thus reducing flood risk to the village of Walkhampton.
Deer Project – an enforcement undertaking to deliver aquatic habitat and species improvement works on the River Deer.
*Defra Woodlands for Water – multi-partner project supporting tree planting initiatives across river catchments to improve climate resilience and restore biodiversity to our catchments.
*Devon and Cornwall Soils Alliance – project aimed at building both capacity and capability to deliver skilled expert soil advice across Devon and Cornwall. The project also contributed to the Bridgetown Weir capital works project, to enable the construction of a fish pass and smolt chute at Bridgetown weir (River Exe) to improve fish migration for diadromous freshwater fish.
Educational Activities – donations received to facilitate the delivery of education outputs at schools and community events.
Environmental Investment Fund (previously CPES Donations) – donations received from local business and interested stakeholders for funding targeted interventions within catchments in which the business has an interest and/or presence. These donations were initially raised within the scope of the CPES project and in line with the CPES objectives which hope to see businesses take an increased interest in their local catchments and recognise the role they play in helping to conserve them. Following completion of this element of the CPES project the remaining funds have been re-named to reflect our ambition to continue raising funds from stakeholders for future investment in tangible interventions within catchments.
Exe Phase 3 - General – a project fund to support a River Exe officer delivering habitat restoration on the River Exe. These funds were received from the River Exe Tributary Association (RETA). In the current year RETA authorised a transfer from these funds into the Strategic Exe Weirs project in which the charity is working closely with RETA to address barriers throughout the Exe catchment.
43
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **27 Analysis of charitable funds (cont.)**
Farm Net Zero – multi-partner project seeking to demonstrate how farmers can help to mitigate climate change through changing farming practise. The project aims to work with farmers and encourage them to drive the process forward via knowledge building and sharing.
*Fisheries Improvement Programme projects – this is a group of projects funded by the Environment Agency that facilitates activities for the benefit of maintaining or increasing fish stocks in the rivers.
Frome & Piddle – funding to co-ordinate the implementation of a fish pass on the Frome and Piddle in West Dorset.
Frome Enforcement Undertaking – an enforcement undertaking to deliver aquatic habitat and species improvement works on the River Frome.
*Bokkidick Wet Woodland Restoration – funding from the G7 Legacy Fund to carry out in-river woody material additions, bank protection and river feature enhancement, in the form of; the addition of in-river woody debris, laying/hinging of small trees into the edge of the watercourse, the addition of untreated coir rolls where not possible adding locally sourced brash, creation of inriver features using woody material and brush flow deflectors/wetting of wet woodland.
*CSI Fal & Par Water Quality Testing – funding from the G7 Legacy Fund to improve the volunteer river monitoring on the River Fal and Par.
*Future Visions – funding to envisage and then develop illustrations of possible future landscapes based on alternative scenarios, that maintain the availability of sufficient water of appropriate quality for all of society’s uses and the environment at all times.
Green Match Fund – a fund raising effort to support an otter holt and wildlife homes on the River Fal.
Killerton House Green Recovery – project to improve the section of the River Culm from Ellerhayes Bridge to Columbjohn Bridge for natural flood management, climate resilience and nature.
*Molinnis Nature Recovery – funding from the G7 Legacy Fund to restore and enhance habitats in the Lower Molinnis catchment to support aquatic and terrestrial flora and fauna.
Morrisons Soil Carbon – donation received from Morrisons to support our Soil Organic Carbon drive and work with the Dartmoor Farmers Association (DFA) to increase our understanding and our ability to pursue soil carbon initiatives as part of a holistic approach to land and water management.
Plymouth River Keepers – an enforcement undertaking encompassing a diverse range of activities with a primary focus on community based environmental restoration coupled with physical restoration of river features.
Postcode Local Trust – Funding for the Sustainable Woodland and River Management project (SWARM). This project combines riparian woodland and river habitat management with volunteer and community engagement and educational activities. The project will improve the aquatic and terrestrial diversity of the woodland whilst offering outdoor learning and engagement opportunities.
44
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **27 Analysis of charitable funds (cont.)**
*Preventing Plastic Pollution – this is a 3 year Interreg project in which we are working with 17 partners across France and England and seeking to understand and reduce the impacts of plastic pollution in the marine environment. The project will look at catchments from source to sea and identify and target hotspots for plastic, embed behavioural change in local communities and businesses, and implement effective solutions and alternatives to using plastic.
*PROWater – this is a four year Interreg project in which we are working with partners in South England, Belgium and the Netherlands with the aim of contributing to climate adaptation by restoring the water storage of the landscape via ‘ecosystem-based adaptation measures’ such as forest conversion, natural water retention or restoration of soil compaction. These interventions build resilience against droughts and floods, and benefit water quality and biodiversity. Alongside this the project aims to close the information gap between policy and the water user, by developing a vision to tackle water scarcity and drought risks in the long term.
Rapid Response Catchments* - funding from Devon County Council for the Devon Resilience Innovation Project (DRIP). The project will develop and test approaches to improve flood resilience in 10 small rapid response type catchments, covering 8 communities, and working to find local solutions to the impacts of climate change including Nature Based Solutions.
*Risk Aqua Soil – this is an Interreg funded project looking at the impact of climate change and land use change on the way water interacts with soils, and the risks that this poses to society. Through modelling, mapping, and monitoring, local farmers and landowners are being engaged to understand how their farm can adapt to changes and build resilience in our catchments.
River Clyst Improvements – an enforcement undertaking to deliver aquatic habitat and species improvement works on the River Clyst.
River Wolf Improvements - an enforcement undertaking to deliver aquatic habitat and species improvement works on the River Wolf.
*Rivers Trust – Collaborative Fisheries Monitoring – funding from the Environment Agency administered by the Rivers Trust to collaborate co-ordination of electric fishing programs and to cover a new catchment fisheries program.
River Taw Electrofishing – funding received to enable the electrofishing programme within the River Taw catchment.
Somerset Brue Water Resources CSI – project aim at expanding the CSI initiative in the Brue Water area.
*SPONGE – this is a three-year Interreg project from the 2 Seas area for Community led Sustainable Urban Drainage Solutions (SUDS) to improve flood resilience in towns and cities linked with local and international strategies.
*StARR – the charity is a partner in the St Austell Bay Resilient Regeneration project delivering natural flood management advice and activities in the upper catchment to decrease flooding and reduce pollution as part of an integrated catchment management approach.
Strategic Exe Weirs – funding to carry out preliminary investigations and assessments to inform plans to overcome obstacles in the Exe catchment with a priority focus on improving fish passage.
45
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **27 Analysis of charitable funds (cont.)**
SWW Upstream Thinking Grants and SWW Green Recovery Grants – funds relating to the grant spend included within the project. All funds received under this distinct element of the project are to be spent specifically on distributing grants to farmers for farm improvements that will improve water quality. These funds can only be applied for this particular purpose and are therefore treated as restricted. On occasion, where grants are subsequently cancelled, with the permission of SWW the funds can be used for other non-restricted project activity and a transfer is done out of this fund accordingly.
Taw Spawning Improvements – funding to carry out surveys and identify appropriate interventions to improve spawning habitat in the Taw catchment.
Teign Restoration – is a project that is NLHF (lottery funded) partnership project led by the Teign Angling and Conservation Association (TACA), primarily to provide fish monitoring, training, and supporting science to facilitate and enable meaningful practical interventions by TACA and catchment volunteers.
*TransformAR – Horizon 2020 funded project with multiple European and UK partners aiming to show how Nature Based Solutions can be used to build climate change resilience and developing a financial mechanism by which investors in green bonds can be paid back following delivery of environmental goods and services (building the case/potential for phosphate credits).
*Triple-C – Interreg funded project from the Atlantic area focused on the capitalization of successful initiatives on the prevention and management of risks deriving from climate change.
Water Environment Improvement Fund projects – this is a group of projects funded by the Environment Agency that aims to improve the water environment in rural England and achieve compliance with the Water Framework Directive (WFD).
*Water for Growth – this is a project aimed at increasing the fisheries potential and thereby developing the Natural Capital of the Cornish rivers Camel and Fowey.
Westcountry Angling Passport (previously Angling 2000) – operation of fishing on beats within the Westcountry Angling Passport. The fund name has been amended following the re-branding of the scheme and the launch of the Fish Pass app.
*Women’s Angling – funding received from Sport England to deliver a project that seeks to break down the barriers to angling participation for women and encourage more women into the sport, which is traditionally very male dominated.
*WRAP – Wetland Restoration – is a NEIRF (Natural Environment Investment Readiness Fund) project designed to support our other projects creating and restoring wetlands in the Camel catchment and potentially further afield in the longer term. It is focused on developing a form of agreement with landowners suitable for the long term retention of conservation features, without requiring site purchase.
Other funds – this includes several smaller funds that have been received to fund either specific activities or activities in a specific area within the Westcountry.
46
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **28 Analysis of group net assets between funds**
## **Current Year**
|
Intangible assets
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
**Total**|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**Funds**
**£**
1,076
-
1,076
122,246
-
122,246
872,722
18,940
891,662
365,382
800,287
1,165,669|
|---|---|
||**1,361,426**
**819,227**
**2,180,653**|
## **Previous Year**
||**Unrestricted**
**Restricted**|**Unrestricted**
**Restricted**|**Unrestricted**
**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|
|||**£**|**£**|**£**|
|Intangible assets||2,253|-|2,253|
|Tangible fixed assets|108,004||-|108,004|
|Cash at bank and in hand|839,037||382,322|1,221,359|
|Other net current assets/(liabilities)|265,924||515,103|781,027|
|**Total**|**1,215,218**||**897,425**|**2,112,643**|
|**econciliation of net movement in funds to net**|**cash flow from operating activities**||||
||**Group**|
**Group**|**Charity**|**Charity**|
||**2022**|
**2021**|**2022**|**2021**|
||**£**|
**£**|**£**|**£**|
|Net income/(expenditure) for the reporting period|
68,010|
402,073|52,955|403,374|
|Adjustments for:|||||
|Depreciation and amortisation charges|74,603|
55,302|74,603|55,302|
|Losses/(gains) on investments|16|
(76)|16|(76)|
|Dividends and interest from investments|(2,783)|
(2,842)|(2,783)|(2,842)|
|Loss/(profit) on the disposal of fixed assets|256|
2,738|256|2,738|
|(Increase)/decrease in stock|3,200|
(3,200)|3,200|(3,200)|
|(Increase)/decrease in debtors|(432,425)|
(235,680)|(432,090)|(241,525)|
|Increase/(decrease) in creditors|44,567|
271,946|46,308|275,168|
|Net cash provided by (used in) operating
activities|**(244,556)**|
**490,261**|**(257,535)**|**488,939**|
## **29 Reconciliation of net movement in funds to net cash flow from operating activities**
47
**WESTCOUNTRY RIVERS TRUST**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **30 Analysis of cash and cash equivalents**
|Cash at bank and in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents|**Group**
**2022**
**£**
**Group**
**2021**
**£**
**Charity**
**2022**
**£**
**Charity**
**2021**
**£**
691,662
521,359
655,910
498,586
200,000
700,000
200,000
700,000|
|---|---|
||**891,662**
**1,221,359**
**855,910**
**1,198,586**|
## **31 Operating lease commitments**
At 31 December 2022 the group and charity had total future minimum lease payments due under non-cancellable operating leases as follows:
||**2022**|**2021**|
|---|---|---|
|**Group and Charity**|**£**|**£**|
|Within 1 year|29,161|1,668|
|Between 2 and 5 years|33,521|-|
## **32 Funds received as agent**
The following amounts were received and paid by the charity acting as agent:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Payroll receipts from The Rivers Trust|397,399|1,276,442|
|Payments made to The Rivers Trust employees and HMRC|(437,439)|(1,269,575)|
As at the reporting date the charity held the following amounts in their capacity as agent:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Payroll receipts from The Rivers Trust not yet paid to
HMRC|-|40,040|
Amounts held as agent are included within Creditors: amounts falling due within one year in the balance sheet.
## **33 Capital Commitments**
As at 31 December the group and charity were committed to £17,534 (2021: £nil) of capital expenditure.
48