Company registration number: 06742270 Charity registration number: 1145675 ## Afonydd Cymru Cyfyngedig (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2020 ## **Afonydd Cymru Cyfyngedig** ## **Contents** |Reference and Administrative Details|1| |---|---| |Trustees' Report|2 to 3| |Statement of Trustees' Responsibilities|4| |Independent Examiner's Report|5| |Statement of Financial Activities|6| |Balance Sheet|7| |Notes to the Financial Statements|8 to 14| ## **Afonydd Cymru Cyfyngedig** ## **Reference and Administrative Details** ## **Trustees** Mr Anthony Rees Mr Alan Winstone Mr Michael Rowley Morris Mr Simon Evans Mr Clive Roberts Mr Creighton Harvey Mr Peter Powell The Viscount Christopher Mills, Chair ## **Registered Office** The Right Bank The Square Talgarth Brecon LD3 0BW ## **Company Registration Number** 06742270 ## **Charity Registration Number** 1145675 ## **Auditor** PJE Chartered Accountants 23 College Street Lampeter Ceredigion SA48 7DY Page 1 ## **Afonydd Cymru Cyfyngedig** ## **Trustees' Report** Afonydd Cymru (AC) continues to represent the six Regional Rivers Trusts (RRTs) with Welsh Government and with Wales’ statutory environmental body, Natural Resources Wales (NRW). These Trusts, who are also registered charities, are as follows: - The North Wales Rivers Trust - The Welsh Dee Rivers Trust - The Severn Rivers Trust - The Wye and Usk Foundation - The South East Wales Rivers Trust - The West Wales Rivers Trust AC takes the lead on advocacy for the RRTs and represents them on the following groups: - The Wales Land Management Forum - The Wales Water Management Forum - The Independent Advisory Panel for Dwr Cymru Welsh Water - NRW Hydropower Group - Local Fisheries Groups - The Passport Scheme - The Fisheries Forum - Wales Environment Link - NRW Access Forum AC continues to advocate through these fora for the improvement of Wales rivers and their associated biodiversity. A particular focus is to prevent agricultural pollution and to promote more sustainable land use practices. A major success was the announcement in December 2020 that the Welsh Government planned to bring in new regulations to control agricultural pollution from April 2021. AC had campaigned for these new powers for over 2 years. The core of our work is to programme manage work carried out by the RRTs to survey, protect, and improve Welsh rivers. A total of £1.06 million, funded by NRW, has delivered in river remediation works across Wales. Page 2 AC has also delivered the Tywi Agricultural Pollution Project providing advice and funding to farmers to prevent agricultural pollution in that catchment. This was funded from Enforcement Undertakings on behalf of NRW. AC also received £360k from the European Maritime Fisheries Fund which has been used to remove barriers to the upstream migration of fish as well as other in river improvements. Sadly, AC’s Chief Executive, Dr Stephen Marsh‐Smith OBE passed away in August 2020. His pioneering work in the Rivers Trust movement is widely recognised. Thanks to funding from the Heritage Lottery Fund, we were able to advertise for a new Chief Executive who we hope to have in post in 2021. In the meantime, Viscount Mills (ACs Chair) was authorised by the Board to act as Chief Executive until the appointment of a replacement for Dr Marsh‐Smith. Chair of the Trustees Page 2 ## **Afonydd Cymru Cyfyngedig** ## **Trustees' Report** The annual report was approved by the trustees of the charity on 1[st] September 2021 and signed on its behalf by: Mr Clive Roberts Trustee Page 3 ## **Afonydd Cymru Cyfyngedig** ## **Statement of Trustees' Responsibilities** The trustees (who are also the directors of Afonydd Cymru Cyfyngedig for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - 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; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the trustees of the charity on 1[st] September 2021 and signed on its behalf by: Mr Clive Roberts Trustee Page 4 ## **Afonydd Cymru Cyfyngedig** ## **Independent Examiner's Report to the trustees of Afonydd Cymru Cyfyngedig** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 7 to 15. ## **Respective responsibilities of trustees and examiner** As the charity’s trustees of Afonydd Cymru Cyfyngedig (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of Afonydd Cymru Cyfyngedig are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** Since Afonydd Cymru Cyfyngedig's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of Afonydd Cymru Cyfyngedig as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ...................................... 23 College Street Lampeter Ceredigion SA48 7DY Date:............................. Page 5 ## **Afonydd Cymru Cyfyngedig** ## **Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)** |**Note**|**Unrestricted**
**funds**
**£**
**Restricted funds**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**| |---|---| |**Income and Endowments from:**|| |Donations and legacies
3|2,190
924,704
926,894
423,647| |Investment income
4|‐
245
245
162| |Other income
5|4,750
‐
4,750
4,750| |Total Income|6,940
924,949
931,889
428,559| |**Expenditure on:**|| |Charitable Activities
6|(7,653)
(926,316)
(933,969)
(441,505)| |Total Expenditure|(7,653)
(926,316)
(933,969)
(441,505)| |Net (expenditure)/income|(713)
(1,367)
(2,080)
(12,946)| |Net movement in funds|(713)
(1,367)
(2,080)
(12,946)| |**Reconciliation of funds**|| |Total funds brought forward|(7,341)
139,396
132,055
145,001| |Total funds carried forward
13|(8,054)
138,029
129,975
132,055| All of the charity's activities derive from continuing operations during the above two periods. Page 6 ## **Afonydd Cymru Cyfyngedig** ## **(Registration number: 06742270) Balance Sheet as at 31 December 2020** |**Note**|**2020**
**£**
**2019**
**£**| |---|---| |**Current assets**|| |Debtors
11|‐
‐| |Cash at bank and in hand|136,037
138,057| ||136,037
138.057| |**Creditors: Amounts falling due within one year**
12|(6,062)
(6,002)| |**Net**assets|129,975
132,055| |**Funds of the charity:**|| |**Restricted funds**|138,029
139,396| |**Unrestricted income funds**|| |Unrestricted funds|(8,054)
(7,341)| |**Total funds**
13|129,975
132,055| For the financial year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities: - The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and - The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on and signed on their behalf by: Viscount Mills Chairman of Trustees Page 7 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **1 Charity status** The charity is limited by guarantee, incorporated in and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The address of its registered office is: The Right Bank The Square Talgarth Brecon LD3 0BW The principal place of business is: The Right Bank The Square Talgarth Brecon LD3 0BW These financial statements were authorised for issue by the trustees on 12 March 2020. ## **2 Accounting policies** ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **Statement of compliance** 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 2015) ‐ (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011. ## **Basis of preparation** Afonydd Cymru Cyfyngedig meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **Going concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. Page 8 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **Exemption from preparing a cash flow statement** The charity opted to early adopt Bulletin 1 published on 2 February 2017 and have therefore not included a cash flow statement in these financial statements. ## **Income and endowments** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. ## _**Donations and legacies**_ Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. ## _**Grants receivable**_ Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. ## _**Deferred income**_ Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when: - The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement. ## _**Investment income**_ Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. ## **Expenditure** All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. ## _**Charitable activities**_ Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Page 9 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **Governance costs** These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses. ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Depreciation and amortisation** Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short‐term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Trade creditors** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non‐current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Page 10 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **3 Income from donations and legacies** ||**Unrestricted**
**funds**|**Unrestricted**
**funds**| |---|---|---| ||**General**
**£**
**Restricted funds**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**|| |Donations and legacies;||| |Donations from individuals|1,241
‐
1,241
987|| |Grants, including capital grants;||| |Grants from other charities|949
924,704
925,653
422,660|| ||2,190
924,704
926,894
423,647|| |**4**
**Investment income**||| |||**Restricted funds**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**| |Interest receivable and similar income;||| |Interest receivable on bank deposits||245
245
162| |**5**
**Other income**||| |||**Unrestricted**
**funds**| |||**General**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**| |Fees and supplies||4,750
4,750
4,750| Page 11 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **6** |**6**|| |---|---| ||**Unrestricted**
**funds**| |**Note**|**General**
**£**
**Restricted funds**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**| |General Expenditure|981
821,838
822,819
368,506| |Staff costs|‐
104,313
104,313
62,248| |Governance costs
7|6,672
165
6,837
10,751| ||7,653
926,316
933,969
441,505| ## **7 Analysis of governance and support costs** ## **Governance costs** ## **Unrestricted funds** ||**Unrestricted**
**funds**| |---|---| ||**General**
**£**
**Restricted funds**
**£**
**Total**
**2020**
**£**
**Total**
**2019**
**£**| |Audit fees|| |Audit of the financial statements|840
‐
840
779| |Other governance costs|5,832
165
5,997
9,972| ||6,672
165
6,837
10,751| ## **8 Staff costs** The aggregate payroll costs were as follows: |The aggregate payroll costs were as follows:|| |---|---| ||**2020**
**£**
**2019**
**£**| |**Staff costs during the year were:**|| |Wages and salaries|104,313
62,248| No employee received emoluments of more than £60,000 during the year. **----- Start of picture text -----**
6,966 273 7,239
**----- End of picture text -----**
Page 12 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** |**9**
**Auditors' remuneration**|| |---|---| ||**2020**
**£**
**2019**
**£**| |Audit of the financial statements|840
779| |**10**
**Taxation**|| |The charity is a registered charity and is therefore exempt from taxation.|| |**11**
**Debtors**|| ||**2020**
**£**
**2019**
**£**| |Trade debtors|‐
‐| |**12**
**Creditors: amounts falling due within one year**|| ||**2020**
**£**
**2019**
**£**| |Trade creditors|103
103| |Accruals|840
780| |Deferred income|5,119
5,119| ||6,062
6,002| Page 13 ## **Afonydd Cymru Cyfyngedig** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** |**13**
**Funds**||| |---|---|---| ||**Balance at 1**
**January 2020**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at 31**
**December 2020**
**£**|| |**Unrestricted funds**||| |General|(7,341)
6,940
(7,653)
(8,054)|| |**Restricted funds**|139,396
924,949
(926,316)
138,029|| |**Total funds**|132,055
931,889
(933,969)
129,975|| ||**Balance at 1**
**January 2019**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at 31**
**December 2019**
**£**|| |**Unrestricted funds**||| |General|(4,006)
7,834
(11,169)
(7,341)|| |**Restricted funds**|149,007
420,725
(430,336)
139,396|| |**Total funds**|145,001
428,559
(441,505)
132,055|| |**14**
**Analysis of net assets between funds**||| |||**Unrestricted funds**| |||**General**
**£**
**Restricted funds**
**£**
**Total funds**
**£**| |Current assets||‐
139,937
139,937| |Current liabilities||(7,622)
(2,340)
(9,962)| |Total net assets||(7,622)
137,597
129,975| Page 14 ## **Afonydd Cymru Cyfyngedig** ## **Detailed Statement of Financial Activities for the Year Ended 31 December 2020** ||**2020**
**2020**| |---|---| ||**Unrestricted**
**funds**| ||**General**
**£**
**Restricted funds**
**£**
**Total**
**£**
**Total**
**2019**
**£**| |**Income and Endowments from:**|| |Donations and legacies (analysed
below)|2,190
924,704
926,894
423,647| |Investment income (analysed below)|‐
245
245
162| |Other income (analysed below)|4,750
‐
4,750
4,750| |Total income|6,940
924,949
931,889
428,559| |**Expenditure on:**|| |Charitable activities (analysed below)|(7,653)
(926,316)
(933,969)
(441,505)| |Total expenditure|(7,653)
(926,316)
(933,969)
(441,505)| |Net (expenditure)/income|(713)
(1,367)
(2,080)
(12,946)| |Net movement in funds|(713)
(1,367)
(2,080)
(12,946)| |**Reconciliation of funds**|| |Total funds brought forward|(7,341)
139,396
132,055
145,001| |Total funds carried forward|(8,054)
138,029
129,975
132,055| Page 15 ## **Afonydd Cymru Cyfyngedig** ## **Detailed Statement of Financial Activities for the Year Ended 31 December 2020** ||**2020**
**2020**| |---|---| ||**Unrestricted**
**funds**| ||**General**
**£**
**Restricted funds**
**£**
**Total**
**£**
**Total**
**2019**
**£**| |**_Donations and legacies_**|| |Appeals and donations|1,241
‐
1,241
987| |Grants ‐ other agencies|949
924,704
925,653
422,660| ||2,190
924,704
926,894
423,647| ||| ||**2020**
**2020**| ||**Unrestricted**
**funds**| ||**General**
**£**
**Restricted funds**
**£**
**Total**
**£**
**Total**
**2019**
**£**| |**_Charitable activities_**|| |Direct costs|‐
(821,838)
(821,838)
(367,717)| |Wages and salaries|‐
(94,264)
(94,264)
(57,624)| |Staff pensions (Other) ‐ pension
scheme|‐
(10,049)
(10,049)
(4,624)| |Insurance|(981)
‐
(981)
(789)| |Trade subscriptions|‐
‐
‐
‐| |Telephone and fax|‐
‐
‐
‐| |Sundry expenses|‐
(165)
(165)
(371)| |Sundry expenses|(5,832)
‐
(5,832)
(9,601)| |Accountancy fees|(840)
‐
(840)
(779)| ||(7,653)
(926,316)
(933,969)
(441,505)| Page 16