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2021-03-31-accounts

Annual Report & Consolidated Accounts 2020/21

WRAP Annual Report and Accounts 31 March 2021 2

Contents

Reference and administrative details 3
Statement from the Chair of Trustees and the Chief Executive 5
Trustees’ Report including Strategic Report 6
Financial review 18
Statement of responsibilities of the Trustees 23
Independent Auditor’s Report to the members 24
Consolidated statement of financial activities 27
Consolidated and charity balance sheets 28
Consolidated statement of cash flows 29
Notes to the accounts 30

WRAP Annual Report and Accounts 31 March 2021 3

Annual Report and Consolidated Accounts for the year ended 31 March 2021

Reference and Administrative Details

The Waste and Resources Action Programme

Charity number 1159512 Country of registration England and Wales Company number 4125764 Country of incorporation United Kingdom Registered office & operational address 2[nd] Floor Blenheim Court 19 George Street Banbury OX16 5BH

Trustees

Trustees who served during the year and up to the date of this report were as follows:

Julie Hill (Chair) Robert Longley Cook Sophie Thomas Sue Corbett Marc Stephens Jim Oatridge Sachin Kapila Sarah Chapman Michaelene Kinnersley

Executive Committee

Members who served during the year and up to the date of this report were as follows:

Marcus Gover Chief Executive
Peter Maddox Insights and Innovation Director (to 31 December 2020)
Claire Shrewsbury Insights and Innovation Director (from 1 November 2020)
Charles Darley Collaboration and Change Director (from 5 October 2020 to 31 March 2021)
Richard Swannell International Development Director
Paul Suller Commercial, Finance, and Operations Director
Angela Pulley HR Director
Tom Lewis-Reynier Strategic Engagement Director

WRAP Annual Report and Accounts 31 March 2021 4

Our advisers

External auditor Sayer Vincent LLP Invicta House 108-114 Golden Lane London EC1Y 0TL Legal advisers Bristows LLP 100 Victoria Embankment London EC4Y 0DH Legal advisers Bates Wells 10 Queen Street Place London EC4R 1BE Legal advisers Dale Levy & Co LLP 8 Holyrood Street London SE1 2EL Internal auditor Haysmacintyre 10 Queen Street Place London EC4R 1AG Bankers Barclays Bank PLC 25 High Street Coventry CV1 5RE

Bankers Lloyds Bank PLC Faryners House 25 Monument Street London EC3R 8BQ Investment managers Brewin Dolphin Ltd 12 Smithfield Street London EC1A 9LA Investment managers Rathbone Greenbank Investments 8 Finsbury Circus London EC2M 7AZ Investment managers Royal London Asset Management 55 Gracechurch Street London EC3V 0RL

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Statement from the Chair of Trustees and the Chief Executive

This has been a year like no other. It has of course been hugely challenging for WRAP as an organisation, individual team members, and the board of trustees. At the same time, it has been a highly successful year when we consider what we have achieved in these twelve extraordinary months.

Feedback from our team members has assured us that we have been a flexible and empathetic employer through the many difficult stages of the pandemic. We want to thank everyone for unprecedented commitment and effort over the year. We were also able to accelerate our efforts towards greater equality, diversity and inclusion with the support of the whole organisation.

We played an important part in keeping vital waste services in operation from the start of the crisis, running this emergency support alongside delivery of planned programmes. Our government partners have expressed great appreciation for this. WRAP was also instrumental in redirecting food that might have been wasted from the hospitality industry to people who needed it.

Perhaps most surprising is that our international presence and project delivery expanded, despite being unable to travel. This gives us confidence that we can run effective and efficient programmes across the globe with the minimum short-term environmental impact.

We constructed and launched a new agreement with the textiles industry, showing that the public and political drive towards sustainable fashion was a more powerful force than the economic problems suffered by the sector. This new agreement will build on the successes of our pioneering Sustainable Clothing Action Plan.

The first ever Food Waste Action Week, delivered by WRAP, was coupled with publication of the United Nations Environment Programme (UNEP) Food Waste Index Report 2021, which WRAP co-authored. It is the most comprehensive survey to date of global food waste. We received unprecedented coverage for these initiatives, and helped to cement understanding of the contribution of food waste to carbon emissions as well as having an expanded platform to promote

solutions.

Our research teams provided evidence that food behaviours during COVID had changed, giving us important insights as we plan our next campaigns. We also spelt out in detail how resource efficiency can make large cuts in greenhouse gas emissions, and we provided a blueprint for how we can ‘build back better’.

Some aspects of our work were less easy to keep on track:

Our drive to diversify funding towards more donation and grant-funded income showed early results, but competition for charitable funding has increased. We will redouble our efforts in the coming year.

Our work on plastics was complicated by the inevitable role of single-use plastics in fighting the pandemic, and coping with supply chain issues distracted industry partners. Even so, solid progress was made towards the Plastics Pact targets, and our support has expanded the global network of plastics initiated by the Ellen MacArthur Foundation.

The coming decade has been dubbed ‘The Decade of Delivery’. The call to action in response to the ‘climate and nature emergency’ must translate into change on the ground. As an organisation that combines providing insight with delivery of transformative partnerships and policies, WRAP is in a pivotal position to drive this change. We are clear that resource stewardship and a more circular economy can address the multi-faceted crisis that threatens our well-being, and we look forward to working with our many partners and supporters worldwide on this mission.

Marcus Gover Chief Executive

Julie Hill Chair

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Trustees Report including Strategic Report

Introduction to WRAP

WRAP is an international sustainability NGO based in the UK and delivering impact around the world. We work with businesses, governments, citizens, and charities. Our vision is a world in which resources are used sustainably.

We were set up as The Waste and Resources Action Programme (WRAP), a charitable company limited by guarantee, incorporated on 11 December 2000, and registered as a charity in England and Wales on 5 December 2014.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association dated 6 April 2018. The liability of the members of the company is limited to £1 per member.

The objects for which WRAP is established are:

The protection and preservation of the environment for the public benefit, in particular but without limitation by:

Our focus on ‘sustainable resource use’ is intended to enable society to meet the needs of the current population without compromising the ability of future generations to meet their needs.

In reviewing our charitable objects and as part of forward planning, the Trustees have taken account of the Charity Commission’s guidance on public benefit and considered how our planned programme of work will consistently contribute to the charity’s aims and objects.

For the public benefit

Human life on Earth is facing unprecedented global challenges. Our world is experiencing:

higher than the natural background extinction rate; and

This is leading to significant and irreversible changes to the Earth’s environment. This not only threatens our ability to sustain the current human population, but also to provide for the estimated additional 2.5 billion people who will be with us by 2050.

In addition, while the full impact of the COVID-19 pandemic is yet to be fully understood, it is likely to lead to an increase in the number of people facing food insecurity and poverty in the short to medium term.

WRAP’s greatest potential to bring benefits to humanity and the environment is through effective deployment of our skills, track record, networks, and resources, by focusing on:

Working in these areas will enable us to deliver against the UN Sustainable Development Goals (SDGs) on poverty and hunger, sustainable cities, responsible consumption and production, climate change, and life below water and on land.

How does WRAP work?

WRAP works across systems, and through value chains. We bring different parts of industry together and make changes throughout the sector to bring about sustainable, systemic change.

We deliver our work through five services:

Business Voluntary Agreements

We design, develop, convene, manage, and support business collaborative change programmes. The voluntary agreement model provides a safe, collaborative space. This allows global brands, retailers, suppliers, re-use and recycling businesses, governments, local authorities, and other stakeholders to come together to tackle waste, reduce water use, and work toward net zero carbon emissions.

Citizen Behaviour Change

We research, develop, pilot, deliver, and evaluate behaviour change intervention programmes to help citizens embrace a more sustainable lifestyle. Millions of UK citizens know and trust our behaviour change consumer campaigns, such as Love Food Hate

WRAP Annual Report and Accounts 31 March 2021 7

Waste, Clear on Plastics, Love Your Clothes, and Recycle Now.

Technical Support

We provide expert research, guidance, and tools to help international organisations, national governments, local authorities and municipalities, and businesses develop and implement waste prevention and recycling policies.

Grants and Investments

We manage grants, loans, and investments to help increase the use of recycled materials in manufacturing, grow recycling capacity, or overcome specific market failures by acting as a catalyst to encourage other funders to invest. This year our grants portfolio was increased to provide emergency funding in response to COVID-19.

Policy and Insights

We provide expert research, cost modelling, advice, and support. Our experts are regularly called upon to advise local, regional, and national governments around the world to develop new ideas, and to formulate strategies and policies.

Our strategic ambitions

In December 2020, we launched Our Plan for a Sustainable Planet – WRAP’s blueprint towards a waste-free world by 2025. This five-year plan sets out the actions that we will take to become net climate positive, and acts as a call to action for everybody – from individuals to entire nations.

This plan will be made possible by a robust fundraising strategy and the growth of our strategic engagement team. This team is focused on securing funding from philanthropic sources. We will also be increasing our business and government account management expertise as we seek to maximise income growth from multiple sources.

Our ambitions for 2020 to 2025 are to:

We want to influence more and more countries to develop strategies to meet the UN SDGs. Our experience and know-how will help our in-country partners to develop effective mechanisms and, crucially, measure their impact.

We aim to increase our global impact in future and look forward to continuing to work with our government and philanthropic funders and partners. We will also build new alliances to enable our vital international work to continue and expand.

The impact of COVID-19

This year our activities have been impacted by the COVID-19 pandemic. In March 2020 our offices closed, and all our employees have worked from their homes for over a year. Like many other organisations, we had to re-evaluate what was achievable, and after consultation with employees and partners, we revised our delivery plan. Specific examples of how this has affected our delivery are highlighted below.

Our advice, tools, and services have been in more demand than ever. We supported the UK Government with its emergency pandemic response, which has included tailored COVID-19 messages for local authorities in England, Wales, and Northern Ireland.

Internationally, we had expected our work to be severely impacted due to worldwide travel restrictions. We have continued to support our partners around the globe virtually, which has resulted in several countries establishing voluntary agreement models.

Being largely funded from institutional sources, WRAP has weathered the negative impact of COVID19 on its discretionary funding sources very well. Some foundations have repurposed their funds towards emergency COVID-19 relief projects, or to provide critical emergency organisational funding, and this has increased the competition for ongoing and longer-term funding. However, there may be an emerging shift towards environmental and sustainability projects as we emerge from the pandemic and WRAP will be well placed to benefit from this. WRAP does not conduct public fundraising to any significant degree and so has not been affected by – for example – the cancellation of sponsored events, or the closing of retail outlets.

Our impact this year

WRAP’s profile and influence, particularly on the international stage, has grown significantly throughout the year. We were selected as lead partner for the Royal Foundation’s ‘Build a Waste-free World’ prize, one of the foundation’s five Earthshot Prizes – the most prestigious global environment prizes in history. Each year, between 2021 and 2030, five £1 million prizes will be awarded, providing at least 50 solutions to the world’s greatest environmental problems.

As part of engaging businesses and governments to ‘build back better’ post COVID-19, we published a six-point plan. It argues that moving to a more circular

WRAP Annual Report and Accounts 31 March 2021 8

economy should form an essential element of the UK’s recovery.

To emphasise our work towards net zero, we released ‘Net Zero: why resource efficiency holds the ’ answers . With eight complementary strategies, this is the first report to clearly show the huge benefits for the UK, and globally, in cutting GHG emissions through resource efficiency.

Food and drink

Food production and consumption is responsible for around 30% of global carbon emissions, and 60–80% of biodiversity loss through the destruction of natural habitats.

We enable organisations to unlock the economic benefits of waste reduction and resource efficiency in the food and drink supply chain. Our experts develop collaborative projects that enable organisations to reduce food waste and GHG emissions, and protect critical water resources. Our standout projects include:

founding signatories. This is the first food waste voluntary agreement in Latin America. A high-profile online workshop with over 250 delegates was hosted by our in-country partner, BAMX.

In 2018, UK households wasted 6.6 million tonnes of food, of which 4.5 million tonnes was edible. We work with partners to amplify our messages and change behaviour through interventions in store, in the home, or on packaging. Examples of this work include:

In January 2021, we were awarded a £560,000 grant from the Walmart Foundation to fund the research and development of behaviour change interventions to reduce household food waste in the UK and Canada.

Sustainable plastic packaging

The production, use, and disposal of plastic generates about 1.8 billion tonnes of carbon emissions annually. The world produces 141 million tonnes of plastic packaging a year – but around a third of all plastic packaging put on the global market leaks from collection systems, polluting the environment. At least eight million tonnes of plastic leaks into the ocean each year.

The linear system of take, make, dispose is failing us. Taking action will improve our natural environment and conserve our precious natural resources and help build a prosperous and resilient future for our people and planet. Action taken this year includes:

WRAP Annual Report and Accounts 31 March 2021 9

amount of plastic packaging recycled in the UK increased from 44% in 2018 to 50% in 2019, but urgent action is required to make flexible plastic packaging widely recyclable in the UK. It is vital to increase its collection, and front of store supermarket recycling points are the biggest opportunity. However, COVID-19 resulted in a set-back owing to restrictions at many sites. Some encouraging announcements have been made including by Tesco and WRAP is confident that others will follow.

Clothing sustainability

The global fashion industry produced around 2.1 billion tonnes of GHG emissions in 2018, equating to 4% of the total. In addition, the number of times each item of clothing is worn before being discarded is significantly reducing.

WRAP is taking action to transform the way the fashion and textiles industry buys, uses and reuses textiles and clothing. Our cross-industry collaborative agreements cut carbon, water and waste from textile supply chains. Our standout projects include:

WRAP Annual Report and Accounts 31 March 2021 10

the ‘Litter Binfrastructure’ scheme. English local authorities could apply for grants from £10,000 to £25,000 to purchase and install new bins in identified litter-prone ‘hotspot’ locations. Nearly £1 million has been awarded.

Northern Ireland

Resource management

The UK recycling rate for waste from households was 45% in 2018, decreasing from 45.5% in 2017. The recycling rate decreased in all UK countries except Northern Ireland in 2018. The reduction for England was driven primarily by a reduction in ‘other organics’ such as green garden waste sent for recycling, linked to adverse weather conditions for plant growth. There is a need for continued activity to deliver government ambitions on recycling and minimising residual waste. Our work to sustainably manage resources included:

Below are examples of our regional work on resource management.

England

On behalf of Defra, we:

On behalf of the Department for Agriculture, Environment and Rural Affairs (DAERA):

Wales

On behalf of the Welsh Government:

WRAP Annual Report and Accounts 31 March 2021 11

grants were temporarily made available from £6,000 (rather than £25,000) to £750,000, with higher intervention rates possible. Several projects have been delayed due to the pandemic and Brexit, with some applications withdrawn; however, we have awarded over £2 million. Projects funded since 2019 are forecast to use over 51,000 additional tonnes of recycled materials in products and create 47 new jobs.

Using tried and tested interventions we will engage more and more citizens in food waste reduction around the world. This will include increasing food redistribution even further, getting more good food to those who need it.

Working with the EU, G20, and Commonwealth countries, we will continue to develop and implement food waste reduction policies. By supporting partners around the world, we will help them to deliver programmes and citizen behaviour change campaigns to reduce food waste and GHG emissions. This will ensure that the UK remains on its trajectory to halve food waste by 2030 in line with UN SDG 12.3, and that more countries are on a similar path.

Plastic packaging

Future plans for our focus areas

Food and drink

We will help the food and drink sector to measure and increase contributions to net zero. By supporting large food businesses and their suppliers we will enable them to report and reduce their food waste. This would also include reducing water stress in the major sourcing regions for UK food.

The UK Plastics Pact will continue to drive our work on tackling plastic pollution as we agree action plans with members, convene collaborative actions, and share good practice. We are working with our members on reaching the Pact’s targets, and to find innovative solutions for film and flexible packaging recycling.

We will continue to provide balanced messaging about the impact of plastics to people through our ‘Clear on Plastics’ campaign. We intend to secure new funding from trusts and foundations for this citizen-facing work.

Extending the global network of Plastics Pacts has been a huge success. Our work with partners will continue to develop further pacts and plastic reduction policies within the EU, G20 and Commonwealth countries.

Textiles

SCAP 2020 has entered its final year and the results will be published in Autumn 2021. Our new voluntary agreement, Textiles 2030, will champion circularity and seek to halve the climate change impact of clothing and textiles. Its focus will be on delivering targets on carbon, water, and a circular economy, and enabling a wide range of textile businesses to measure their own progress. Globally, we will pilot our Circular Clothing Action Plans model, which will sit alongside Textiles 2030.

We will look to catalyse investment in innovative and new business models for clothing and provide robust evidence for new policies to tackle unwanted textiles.

Love Your Clothes campaigns and behaviour change interventions are ongoing, and we will explore an international licensing opportunity for Love Your Clothes.

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Resource management

We remain committed to providing policy and technical support to national and local governments and the implementation of collection and packaging reforms. We will encourage more of England’s local authorities to adapt more consistent waste and recycling services whilst also using our evidencebased social norming messages in communications.

For Welsh local authorities, we will continue to deliver service changes. Our plans in Northern Ireland are to provide support and insights required to implement EPR, payment modelling and Single Use Plastics legislation support. Citizen behaviour change campaigns across the UK will also remain a focus.

We will support higher rates of recycling and a more circular economy through household collections, and more business recycling, and encourage products to be designed to be recyclable or suitable for re-use.

Our work with partners around the world will continue to embed policies and practices that drive a more circular economy.

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Structure, Governance and Management

Board of Trustees

The Board of Trustees, who are also Directors of the Charity for the purposes of the Companies Act, administer the charity. The Board can have up to 12 Members and currently comprises the Chair and eight independent non-executive directors.

The Board is responsible for:

The Board met six times during the year to 31 March 2021.

The company applies the relevant principles of good governance in UK Corporate Governance Code as set out below.

WRAP supports the principles of the Charity Governance Code fully, and we are reviewing our practice against the Code’s requirements as part of our on-going work to build and strengthen our governance arrangements.

Trustee induction and training

New Trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Articles of Association, the committee and decision-making processes as well as WRAP’s strategy, programmes, business plan and recent financial performance. During the induction day they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Nominations and Remuneration Committee

In view of the size of the company, it is considered appropriate to combine the roles of the Nominations Committee and Remuneration Committee. The Committee comprises three non-executive directors, currently Jim Oatridge, Sue Corbett and Robert Longley-Cook (Chair). The Committee met four times during the year to 31 March 2021. The main responsibilities of the Committee are to:

The Committee has agreed a procedure for the selection of Trustees, which will accord with the following principles:

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Remuneration

All the non-executive directors, apart from the Chair, give of their time freely and receive no remuneration. The remuneration of the Chair has been approved by the Charity Commission.

The main objectives of the Company’s remuneration policy are to provide a remuneration package that will attract, retain and motivate individuals of an appropriate calibre. The pay of the executive directors and staff is reviewed annually. The Company benchmarks pay using a leading, commercially available service. An element of pay is variable and relates to performance in the year and is based on achievement of specific objectives.

Expenses are reimbursed to the extent that they have been incurred wholly, necessarily and exclusively for the purposes of the charity.

Full details of Trustees’ remuneration, expenses and related party transactions are disclosed in notes 10 and 12 to the accounts.

Audit and Risk Committee

The Audit and Risk Committee comprises four Trustees, namely Jim Oatridge (Chair), Marc Stephens, Michaelene Kinnersley, and Sophie Thomas. The Committee met four times during the year ended 31 March 2021, with the external auditors present at two meetings. The Chair, Julie Hill, is not a member of the committee but attended four meetings during the year. The Chief Executive, Marcus Gover, attended four meetings during the year. The Commercial, Finance, and Operations Director, Paul Suller, attended four meetings.

The main responsibilities of the Audit and Risk Committee are to:

Maintenance of a sound system of internal control

The Board is responsible for the company’s system of internal control and for reviewing its effectiveness. Such a system is designed to minimise the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Audit and Risk Committee assists the Board in discharging its review responsibilities.

The main features of the company’s risk and control framework are outlined below.

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Board.

The Board has reviewed the effectiveness of the company’s systems of internal control for the financial year 2020/21 and up to the date of approval of the annual report and accounts. The company is committed to the development and enhancement of existing systems of internal control and risk management as appropriate for the company and its activities. During March 2020, Haysmacintyre were appointed as internal auditors for WRAP. This appointment is intended to strengthen the Board confidence in enterprise risk management by adding to the third line of defence, and to provide external insights and best practice to the Executive team.

Investment Committee

The Investment Committee was created and comprises three Trustees, namely Sarah Chapman (Chair), Sachin Kapila and Jim Oatridge. The Committee met three times during the year ended 31 March 2021, with the investment managers present at one meeting. The Chair, Julie Hill, is not a member of the committee but attended two meetings during the year. The CEO, Marcus Gover, attended three meetings during the year. The Commercial, Finance, and Operations Director, Paul Suller, attended three meetings.

The main responsibilities of the Investment Committee are to:

Attendance at meetings

The table below sets out the number of Board and Committee meetings held during the year, and the attendance of each Trustee. It should be emphasised that this information does not fully reflect the contribution made to the charity by many of the Trustees who have also attended other meetings and events relating to the charity during the year.

Board Audit & Nominations Investment
Risk & Committee
Committee Remuneration
Number of meetings 6/6 4 ~~C~~
~~i~~
4		 3
SarahChapman 6/6 3/3
Sue Corbett 6/6 4/4
JulieHill 6/6 4/4 4/4 2/3
Sachin Kapila 6/6 3/3
MichaeleneKinnersley 5/6 2/3*
RobertLongley-Cook 6/6 4/4
JimOatridge 6/6 4/4 3/3* 3/3
Marc Stephens 6/6 4/4
SophieThomas 6/6 3/4

*Number of eligible meetings for this individual is less than the total number due to Committee membership being updated during the year.

Executive Committee

The Board has delegated the day-to-day operations to the Chief Executive Officer (CEO). The CEO, supported by the Executive Committee, is accountable to the Board for providing information to enable the Board to monitor the organisation’s operating and financial results. Individual matters that are novel or contentious are referred to the Board.

The Trustees and Executive Committee are deemed to be key management personnel of the Charity (see page 3 for membership).

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Related Parties

WRAP had three wholly owned subsidiary companies, established where it has been deemed appropriate to house specific programmes in separate legal entities, one of these (eQuip) was liquidated in 2019/20. The three companies were limited by shares.

Accelerating Growth Fund (AGF) Ltd

The company provides financial support and investments to organisations, principally SMEs, who are investing in, or changing to, “circular economy” business models. AGF’s profits are gift aided to WRAP; the amount gift aided amounted to £99k in 2020/21 (2019/20: £129k). An additional £5,357k was distributed from retained earnings in 2020/21 to create an Investment Fund in WRAP. The Chair of the WRAP Board of Trustees is the Chair of AGF Ltd.

eQuip RVG Ltd

The company operated a residual value guarantee scheme to help recycling companies lease machinery. The scheme closed to new business in March 2015 with existing leases having a range of maturities through to 2018. eQuip’s on-going business came to a close and a gift-aid distribution of £421k made to WRAP in 2019/20. The Chief Executive of WRAP was the Chair of eQuip RVG Ltd.

WRAP Enterprises Ltd

WRAP Enterprises was established as a trading subsidiary to capture any revenues arising from commercial contracts. To date WRAP Enterprises has not traded and it is currently dormant. The Chief Executive of WRAP is the Chair of WRAP Enterprises.

Related party information and transactions can be found in Note 10.

Relations with stakeholders, and fundraising

WRAP regularly consults with its stakeholders. Through a series of stakeholder meetings, their views are taken into account in our business planning process. We welcome input from our stakeholders on an on-going basis.

Section 162A Statement: WRAP does not participate in any fund-raising schemes or use the service of a professional fund-raiser or commercial participator to carry on any of those activities.

Safety, Health & Environmental Report

Despite the COVID-19 pandemic and the unique challenge of all our employees working from home, ensuring their safety, health and wellbeing continued to be our overriding priority. Led by the COVID-19 response team which met weekly throughout the year, staff were provided with clear guidance and support on how to maintain high safety, health and environmental standards whilst working remotely.

Throughout the year employees have been encouraged to report near hits and accidents when working from home. Reporting was lower than previous years but a total of 14 near hits and three minor accidents were reported whilst employees were working at home.

When our offices were able to re-open, robust procedures were introduced to reduce the risk of transmitting COVID-19 whilst in the offices and travelling to and from the offices. These were in line with the HSE’s best practice guide and were in place before the HSE published them. Feedback from the employees reported the new procedures worked well and they felt safe in the offices and the risks of transmitting COVID-19 were effectively minimised. There were no accidents reported when the offices were able to re-open.

For site visits that were essential for us to be able to deliver key projects for our funders, a new COVID-19 Site Visits Policy was created. This required Safe Systems of Work, Risk Management plans, COVID-19 site risk assessments and supporting checklists to be signed off by a Director before visits could go ahead.

Through our ongoing health and safety training employee awareness of health and safety continues to be high. This training is completed by all new employees and is refreshed every three years. We have narrowly missed our stretch target for all staff to have completed or refreshed this training for all 10 modules. Current records report 99% compliance.

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Mental health and wellbeing has been a specific focus throughout the pandemic. The combination of our mental health first aiders, our wellbeing champions, SHE committee members, HR and people managers provided continuous and varied support for our employees. Employees also rose to the challenge and quiz and craft evenings were held throughout the year.

A pandemic has had an extremely positive impact on our overall environmental performance with very limited business travel in the UK, greatly reduced commuting for employees and no flights for over 12 months. However, as an environmental charity we still need to demonstrate a proactive commitment to meet high environmental performance.

Whilst working from home employees were challenged to reduce their environmental impact. Employees were encouraged to make pledges against five key areas to: improve their overall resource management; reduce food waste; reduce the environmental impact of the clothes and textiles they use; reduce energy use; and reduce water use. Details of these pledges have been shared outside of WRAP with large multi-national organisations. Measuring our performance against these pledges is ongoing but it has provided a valuable opportunity to highlight some novel ways we can all improve our environmental performance both at work and when working at home.

Employment policies

WRAP operates a programme to inform and educate all staff on matters of interest by means of briefings, seminars and individual training. Employees are involved on a regular basis in discussions related to their specific interests and staff are encouraged to take an active interest in all aspects of WRAP’s performance.

WRAP actively encourages applications from all suitably qualified applicants, regardless of religion, age, sex, sexual orientation, gender reassignment, marital status, disability or race. All employees receive necessary assistance with initial training courses and, once employed, performance management and personal development meetings help in developing a career plan so as to ensure suitable opportunities for everyone. Arrangements are made where possible for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Equality, diversity and inclusion statement

To bring about a diverse and sustainable world, we need to be a diverse and sustainable organisation.

This year WRAP has accelerated its commitment to Equality, Diversity and Inclusion (ED&I). In August 2020 WRAP launched a new ED&I strategy with a formal commitment to treat our employees, customers, partners, and the communities we serve fairly and with dignity and respect. In the months that followed, WRAP partnered with the National Centre for Diversity to work towards its Investors in Diversity accreditation, created a Diversity Network, introduced diversity data collection and monitoring for staff and job candidates, and launched a new ED&I policy.

We have also strengthened our stance on anti-racism. This is not only so we can support the work we do and recruit a more diverse workforce, but also so that employees feel that they can work in an environment without fear of behaviour that causes offence or upset, based on their skin colour.

In the next year WRAP will invest in doing even more. Our focus will be inclusive leadership, changing the way we recruit to increase the diversity of applicants, and strengthen our approach and expectations working with partners and suppliers who also see ED&I as a priority.

We have high expectations of the behaviours and the standards we will hold ourselves to. As we strive to create a workplace that represents the communities we serve and where all our people feel they belong as their authentic selves, we accept that we must be comfortable with the uncomfortable and recognise the need to think and act differently. This is a journey; WRAP wants to be better.

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Financial review

Income

£m 2020/21 2019/20
Restricted donations 0.3 0.2
Trusts and Foundations 1.2 -
UKgovernments 10.3 35.9
Non-UKgovernments 0.2 0.7
Other UKgovernment bodies & local authorities 0.9 1.7
Business contributions to voluntaryagreements 1.9 1.7
Other income 0.8 0.5
Tradingand investment 0.1 0.2
Netgains/ (losses)on investment 4.2 (0.3)
Total income 19.9 40.6

WRAP’s income for the financial year totalled £19.9m which is substantially lower than the 2019/20 figure of £40.6m. The most significant item from 2019/20 was a £19.6m restricted grant from Defra as described below; £5.3m was refunded in 2020/21 as the expenditure could not be committed in time, primarily due to COVID-19 delays. In 2020/21 we also recorded unrealised investment gains of £4.2m mainly relating to a revaluation of unlisted shares in Sicut (£3.4m), and listed investments (£0.7m). Excluding these, underlying income would have decreased moderately by £0.3m.

Government funding

Government funding is primarily from Defra, the Welsh Government, and DAERA in Northern Ireland.

Total core grant funding from Defra was £7.1m (2019/20 £9.8m), however £0.5m was repaid to Defra at the end of the year for programmes deferred due to COVID-19 (hospitality sector and COP26 preparation).

The additional £19.6m Resource Action Fund (RAF) awarded by Defra in 2019/20 was spent over two years on a number of priority policy areas. In January 2019, WRAP was asked by Defra to develop a mechanism to disperse an £18.8 million fund designed to help address several priority environmental outcomes as detailed below. These areas have been identified from previous work and research undertaken by Defra and WRAP, which has highlighted key market failures and capacity gaps from within these areas/sectors.

WRAP and Defra agree the activities that the fund supports, and what mechanisms these address to ease market failures and environmental issues. It was agreed with Defra that the fund included a mix of grant support activities, business development, and research which would be delivered directly by WRAP and/or its appointed subcontractors. In 2020/21 Defra awarded an additional £1.8m (2019/20 £0.75m) to support Food Redistribution in response to COVID-19 supply chain disruptions.

In March 2021, £4.8m was refunded to Defra from the RAF programme due to delays in delivery due to COVID-19 restrictions including retail and hospitality closures during lockdowns.

Defra also awarded a grant of £0.4m to assist Malaysia, South Africa, Pacific Island region, Ghana, Kenya and India launch Plastics Pacts to reduce plastic waste and enable collection and recycling systems.

The Welsh Government awarded a core grant of £4.2m in 2020/21 (2019/20 £4.2m), £1.7m of which was for the Collaborative Change Programme; £0.2m was not drawn down in 2020/21 due to Covid delays. A further

WRAP Annual Report and Accounts 31 March 2021 19

£2.1m (2019/20 £0.5m) was claimed under the £6.5m Circular Economy Fund (CEF) grant programme.

In Northern Ireland, the core grant from DAERA increased to £0.9m (2019/20 £0.6m).

WRAP was awarded a grant of £1.7m from UK Research and Innovation (UKRI) for a UK Circular Plastics Innovation Fund in 2018/19 with the drawdown over three years. In 2020/21 £0.3m (2019/20 £1.0m) was claimed.

Non-government funding

The majority of this income continues to be the contributions from businesses for the three voluntary agreements. This has increased to £1.9m (2019/20 £1.7m), with most of the increase relating to the Plastics Pact.

Charitable grants and donations, including Trusts and Foundations, increased in the year to £1.5m (2019/20 £0.2m), with donations from Walmart (£0.5m), Laudes (£0.4m), Mava (£0.2m), Ocado (£0.1m), and various contributions to Recycle Week.

Other income is principally from international organisations and increased in the year to £0.8m (2019/20 £0.4m), with notable successes being P4G (£0.2m) food waste programme and Google (£0.2m).

Investment policy

WRAP has an investment policy to invest in managed funds or direct equity investments with the intention of furthering the company’s charitable objects and with the intention of providing a greater return than cash.

Listed investments

WRAP currently has £7.3m of financial investments managed by Rathbones Greenbank, and £0.9m managed by Brewin Dolphin (2019/20 £3.6m managed by Brewin Dolphin). Following a tender exercise, the listed investments fund has been transferred to Rathbones Greenbank with an ESG focused mandate.

The investments are long-term in nature (>5 years), and short-term volatility is to be expected, as has been seen in global markets over the year, resulting in a capital gain of £0.6m (2019/20 £0.3m loss).

The portfolio is ESG focused, with investments positively screened for their ESG credentials, and excludes companies deriving most of their revenues from the sale of tobacco or fossil fuels. The portfolio targets a return of inflation (UK CPI) +4% over the long term.

Mixed-motive investments

AGF holds £5.1m (2019/20 £1.4m) of mixed motive investments; £1.2m (2019/20 £1.1m) in the Circularity European Growth Fund and £3.9m (2019/20 £0.3m) in Sicut Enterprises Ltd.

The Circularity European Growth Fund’s mission is to deliver value for investors by supporting SME growth and innovation in the Circular Economy.

Sicut Enterprises is primarily a supplier of sustainable railway sleepers manufactured from recycled plastics. The shares were revalued during the year following an investment round and revised cashflow forecasts, resulting in a gain of £3.4m (2019/20 nil).

Mixed-motive investments are held to deliver charitable impact whilst also generating a financial return, aiming at least for capital retention over the medium-term.

Mixed-motive investments are held within our subsidiary company AGF Ltd.

WRAP Annual Report and Accounts 31 March 2021 20

Expenditure

£m 2020/21 2019/20
Sustainable Production & Consumption 16.8 9.8
Waste and Resource Management 12.3 11.8
Fundraising 0.2 0.1
Other costs (9.9) 0.1
Support costs 3.0 3.0
Governance costs 0.2 0.2
Total Expenditure 22.6 25.0

Total expenditure in year of £22.6m (2019/20 £25.0m), this included an AGF provision release of £10.0m.

Charitable activities

Expenditure on charitable activities (excluding trading, fundraising, support and governance costs) increased during the year by £7.5m to £29.1m (2019/20: £21.6m). Excluding grants the expenditure was £16.8m, similar to 2019/20 (£16.6m).

Expenditure on sustainable production and consumption has increased to £16.8m (2019/20: £9.8m). RAF including grants awarded have increased (£5.5m), citizen engagement food (£1.1m), international (£1m) and business collaboration has decreased (0.6m).

Waste and resource management expenditure has increased to £12.3m (2019/20: £11.8m). Grants awarded have increased by £2.9m, whereas spend in the following activities has reduced: Recycle Now (-£0.5m), recycling collections with local authorities (-£0.5m), Wales and NI (-£0.4m), International (-£0.5m), Trifocal (-£0.6m).

Non-charitable activities

Support costs have remained at £3.0m (2019/20: £3.0m). We have continued to invest in improving the IT network, data storage and enhancing conferencing capability. These projects contributed to the seamless transition to homeworking to protect our employees during the COVID-19 outbreak.

Governance costs remain at £0.2m (2019/20 £0.2m) and cover the costs associated with the constitutional and statutory requirements, and include any costs associated with the strategic management of WRAP’s activities.

Fundraising has increased slightly to £0.2m (2019/20: £0.1m reflecting a new fundraising team towards the end of the year.

A detailed breakdown of expenditure can be found in Note 4.

Net movement in funds

There was a net decrease of £2.7m in funds during the year to £33.4m (2019/20: £36.1m). This consists of a £16.2m increase in designated funds, a £17.1m decline in restricted funds, and a £1.8m reduction in general funds.

The large decrease in restricted reserves is predominately due to the spend-down of the RAF grant (£15.2m). In addition, a £1.9m drawdown in 2019/20 from Defra for other 2020/21 programme activities was held within restricted reserves at the previous year-end.

At the end of 2020/21 £0.7m remained in WRAP designated reserves to fund business development and fundraising activities. WRAP and AGF also hold an £8.2m designated reserve as an ESG focused financial investment fund to generate unrestricted income of 4% per annum.

The Accelerating Growth Fund holds other reserves of £13.9m (2019/20: £6.1m) designated to its mixedmotive circular economy investment activities. Following a strategic review, there is now more clarity on the

WRAP Annual Report and Accounts 31 March 2021 21

establishment of a mixed-motive portfolio, and therefore the previous provision has been removed.

The accounts include a Gift Aid distribution from AGF to the parent company of £0.1m (2019/20 £0.1m).

Consolidated balance sheet

At 31 March 2021 net assets were £33.4m (2020: £36.1m).

The most significant movements in this financial year are:

Reserves policy and going concern

WRAP holds financial reserves to be applied to future activities in these categories:

The Trustees have set a target for unrestricted reserves based on an analysis of the potential financial risk facing WRAP. The Trustees consider the appropriate level of general reserves to be between three and six months of staff and support costs. Funds in excess of this will be transferred to the financial investment fund to generate a predictable level of unrestricted income. Should general reserves fall below three months, then a call on the financial investment fund can be made.

The Trustees have reviewed the circumstances of the charity and the group and consider that adequate resources continue to be available to fund activities for the foreseeable future. The Trustees are therefore of the view that the WRAP group is a going concern.

Principal risks and uncertainties

The Trustees have a risk management strategy which comprises:

The principal risk and uncertainty for WRAP relates to the level of future funding. Our primary source of funding continues to be grant funding from the UK’s central and devolved governments. Continued downward pressure on public finances presents a risk to WRAP, as to any organisation in receipt of government funding.

The Trustees’ mitigation for these risks is threefold:

WRAP Annual Report and Accounts 31 March 2021 22

through more donations and in particular trust and foundation income, whilst additional relationship managers are also being recruited; and

As mentioned elsewhere in the report, WRAP has considered the impact of COVID-19 on its operations and strategy and responded accordingly. The safety and welfare of our staff is paramount, with our existing business continuity procedures enabling staff to work seamlessly from home as soon as we took the decision to close our office in response to government advice on social isolation. We are working closely with our funders and stakeholders to review their priorities and adjust ours accordingly. WRAP remains well-funded, retains the support of our major funders (governments and large corporations), and work can continue remotely for most of our programmes. A gradual return to office-based work is planned from April 2021.

WRAP maintains comprehensive Health and Safety policies and procedures, including reporting and review of any accidents or near-misses. Please see the Safety, Health and Environment section on page 16 for further details.

WRAP Annual Report and Accounts 31 March 2021 23

Statement of responsibilities of the Trustees of The Waste and Resources Action Programme in respect of the Trustees’ annual report and the financial statements

The Trustees (who are also directors of The Waste and Resources Action Programme for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 14 (2020: 14). The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ Annual Report which includes the strategic report has been approved by the Trustees on 30 June 2021 and signed on their behalf by

Julie Hill Chair

WRAP Annual Report and Accounts 31 March 2021 24

Independent auditor’s report to the members of The Waste and Resources Action Programme

Opinion

We have audited the financial statements of The Waste Resources and Action Programme (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 group financial statements section of our report. We are independent of the group and parent charitable company 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 Waste Resources and Action Programme's ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group 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 group financial statements themselves. 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.

WRAP Annual Report and Accounts 31 March 2021 25

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company 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 the trustees 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 group’s and the parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

WRAP Annual Report and Accounts 31 March 2021 26

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor) 7 July 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

The Waste and Resources Action Programme

27

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Unrestricted
Note
£'000
2
2,344
2
133
3
130
2,607
4
2,217
4
24
4
(9,946)
(7,705)
10,312
4,171
7
14,483
33
14,516
(107)
14,409
14,317
28,726
-
22,831
5,895
28,726
Income from:
Charitable activities
Sustainable production and consumption
Waste and resource management
Investments
Total income
Expenditure on:
Charitable activities
Sustainable production and consumption
Waste and resource management
Other expenditure
Total expenditure
Net income / (expenditure) before net
gains/(losses) on investments
Net gains / (losses) on investments
Net income / (expenditure) for the year
Transfers between funds
Net income / (expenditure) before other
recognised gains and losses
Other losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Restricted funds
Designated funds
General funds
Total		 Unrestricted
Note
£'000
2
2,344
2
133
3
130
2,607
4
2,217
4
24
4
(9,946)
(7,705)
10,312
4,171
7
14,483
33
14,516
(107)
14,409
14,317
28,726
-
22,831
5,895
28,726
Income from:
Charitable activities
Sustainable production and consumption
Waste and resource management
Investments
Total income
Expenditure on:
Charitable activities
Sustainable production and consumption
Waste and resource management
Other expenditure
Total expenditure
Net income / (expenditure) before net
gains/(losses) on investments
Net gains / (losses) on investments
Net income / (expenditure) for the year
Transfers between funds
Net income / (expenditure) before other
recognised gains and losses
Other losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Restricted funds
Designated funds
General funds
Total		 Restricted
£'000
4,015
9,135
-		 2021
Total
£'000
6,359
9,268
130		 Unrestricted
£'000
1,926
243
255		 Restricted
£'000
21,602
16,818
-		 2020
Total
£'000
23,528
17,061
255
2,607 13,150 15,757 2,424 38,420 40,844
2,217
24
(9,946)		 16,535
13,729
-		 18,752
13,753
(9,946)		 2,179
560
69		 9,145
13,017
-		 11,324
13,577
69
(7,705) 30,264 22,559 2,808 22,162 24,970
10,312
4,171		 (17,114)
-		 (6,802)
4,171		 (384)
(292)		 16,258
-		 15,874
(292)
14,483
33		 (17,114)
(33)		 (2,631)
-		 (676)
23		 16,258
(23)		 15,582
-
14,516
(107)		 (17,147)
-		 (2,631)
(107)		 (653)
(20)		 16,235
-		 15,582
(20)
14,409
14,317		 (17,147)
21,840		 (2,738)
36,157		 (673)
14,990		 16,235
5,605		 15,562
20,595
28,726 4,693 33,419 14,317 21,840 36,157
-
22,831
5,895		 4,693
-
-		 4,693
22,831
5,895		 -
6,568
7,749		 21,840
-
-		 21,840
6,568
7,749
28,726 4,693 33,419 14,317 21,840 36,157

The statement of financial activities includes all gains and losses recognised in the year. The comparative figures for 2020 are analysed in Note 2. The notes on pages 30-43 form part of the financial statements.

All of the above results are derived from continuing activities. Movements in funds are disclosed in Note 23a to the financial statements.

The Waste and Resources Action Programme

28

Consolidated and charity balance sheets

As at 31 March 2021

2021
2020
Note
£'000
£'000
Fixed assets:
12
53
97
13
13,305
5,040
13,358
5,137
Current assets:
17
1,748
5,475
16
22,572
24,634
11,376
19,632
35,696
49,741
18
(14,626)
(8,358)
21,070
41,383
34,428
46,520
Provision for liabilities and charges
20
(1,009)
(10,363)
33,419
36,157
23a
4,693
21,840
22,831
6,568
5,895
7,749
Total reserves
33,419
36,157
Total assets less current liabilities
Net assets
Debtors due within one year
Reserves
Restricted funds
Unrestricted funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Investments
Cash at bank and in hand
Short term investments
Tangible assets
The group		 2021
2020
Note
£'000
£'000
Fixed assets:
12
53
97
13
13,305
5,040
13,358
5,137
Current assets:
17
1,748
5,475
16
22,572
24,634
11,376
19,632
35,696
49,741
18
(14,626)
(8,358)
21,070
41,383
34,428
46,520
Provision for liabilities and charges
20
(1,009)
(10,363)
33,419
36,157
23a
4,693
21,840
22,831
6,568
5,895
7,749
Total reserves
33,419
36,157
Total assets less current liabilities
Net assets
Debtors due within one year
Reserves
Restricted funds
Unrestricted funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Investments
Cash at bank and in hand
Short term investments
Tangible assets
The group		 2021
2020
Note
£'000
£'000
Fixed assets:
12
53
97
13
13,305
5,040
13,358
5,137
Current assets:
17
1,748
5,475
16
22,572
24,634
11,376
19,632
35,696
49,741
18
(14,626)
(8,358)
21,070
41,383
34,428
46,520
Provision for liabilities and charges
20
(1,009)
(10,363)
33,419
36,157
23a
4,693
21,840
22,831
6,568
5,895
7,749
Total reserves
33,419
36,157
Total assets less current liabilities
Net assets
Debtors due within one year
Reserves
Restricted funds
Unrestricted funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Investments
Cash at bank and in hand
Short term investments
Tangible assets
The group		 2021
2020
£'000
£'000
53
97
7,340
-
7,393
97
1,871
5,641
14,221
14,109
10,791
18,990
26,883
38,740
(14,623)
(8,355)
12,260
30,385
19,653
30,482
(1,009)
(404)
18,644
30,078
4,693
21,840
8,056
489
5,895
7,749
18,644
30,078
The charity		 2021
2020
£'000
£'000
53
97
7,340
-
7,393
97
1,871
5,641
14,221
14,109
10,791
18,990
26,883
38,740
(14,623)
(8,355)
12,260
30,385
19,653
30,482
(1,009)
(404)
18,644
30,078
4,693
21,840
8,056
489
5,895
7,749
18,644
30,078
The charity
13,358
1,748
22,572
11,376		 5,137
5,475
24,634
19,632		 7,393
1,871
14,221
10,791		 97
5,641
14,109
18,990
35,696
(14,626)		 49,741
(8,358)		 26,883
(14,623)		 38,740
(8,355)
21,070 41,383 12,260 30,385
34,428
(1,009)		 46,520
(10,363)		 19,653
(1,009)		 30,482
(404)
33,419 36,157 18,644 30,078
4,693
22,831
5,895		 21,840
6,568
7,749		 4,693
8,056
5,895		 21,840
489
7,749
33,419 36,157 18,644 30,078

Approved by the trustees on 30 June 2021 and signed on their behalf by

Julie Hill Chair of Trustees Company number 4125764 Charity number 1159512

The Waste and Resources Action Programme

29

Statement of cash flows

For the year ended 31 March 2021

Cash flows from operating activities
Net (expenditure)/income for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Gains)/losses on listed and unlisted investments
Exchange losses
Dividends, interest and rent from investments
Decrease/(Increase) in debtors
Increase in creditors
(Decrease)/increase in provision
Net cash (used in)/provided by operating activities
(Increase)/decrease in cash held by investment manager
Analysis of cash and cash equivalents and of net debt
Cash at bank and in hand
Short term investments
Total cash and cash equivalents
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of listed and unlisted investments
Net cash used in investing activities
Change in cash and cash equivalents due to exchange
rate movements
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year		 £
£
(2,738)
44
(3,968)
107
(130)
3,726
6,268
(9,354)
(6,045)
130
-
4,537
(6,279)
(2,554)
(4,166)
(10,211)
44,266
(107)
33,948
At 1 April
2020
Cash flows
£
£
19,632
(8,149)
24,634
(2,062)
44,266
(10,211)
2021		 £
£
(2,738)
44
(3,968)
107
(130)
3,726
6,268
(9,354)
(6,045)
130
-
4,537
(6,279)
(2,554)
(4,166)
(10,211)
44,266
(107)
33,948
At 1 April
2020
Cash flows
£
£
19,632
(8,149)
24,634
(2,062)
44,266
(10,211)
2021		 £
£
15,562
37
286
20
(255)
(2,298)
1,437
204
14,993
255
(65)
881
(1,653)
176
(406)
14,587
29,699
(20)
44,266
Other non-
cash
changes
At 31 March
2021
£
£
(107)
11,376
-
22,572
(107)
33,948
2020		 £
£
15,562
37
286
20
(255)
(2,298)
1,437
204
14,993
255
(65)
881
(1,653)
176
(406)
14,587
29,699
(20)
44,266
Other non-
cash
changes
At 31 March
2021
£
£
(107)
11,376
-
22,572
(107)
33,948
2020
(6,045)
(4,166)		 14,993
(406)
At 1 April
2020
£
19,632
24,634		 Other non-
cash
changes
£
(107)
-
(10,211)
44,266
(107)		 14,587
29,699
(20)
33,948 44,266
Cash flows
£
(8,149)
(2,062)		 At 31 March
2021
£
11,376
22,572
44,266 (10,211) (107) 33,948

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30

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Basis of financial statements and accounting policies

WRAP is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 2[nd] Floor, Blenheim Court, 19 George Street, Banbury, OX16 5BH.

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) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and Charities Act 2011. WRAP 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(s).

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

b) Basis of consolidation

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiaries: Accelerating Growth Fund Limited and WRAP Enterprises Ltd, on a line by line basis. eQuip RVG Limited's ongoing operations came to a close and the company became dormant on 31 December 2019 and liquidated in September 2020. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between AGF (WRAP Enterprises is dormant) are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

The Charity is included in the consolidated financial statements and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following exemptions available under FRS 102 in respect of certain disclosures for the Charity financial statements have been applied:

The Charity is exempt under the Companies Act 2006 s408 from the requirement to present its own profit and loss account.

c) Going concern

The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report within the trustees’ report. The financial position of the Group, its cash flows and liquidity position are also described in the strategic report and the financial statements. As highlighted in the financial statements, the Group meets its day-to-day working capital requirements through grants and other funding. Whilst the current economic and political conditions may create uncertainty over the level of future funding, the trustees have reviewed the Group’s committed funding, obligations and reserves and have concluded that the Group is able to meet all its liabilities as they fall due. As the Charity has a signficant portion of it's 2021/22 income secured and it has £14m of liquid unrestricted reserves, the trustees consider there are no material uncertainties. The trustees therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for 12 months from the date of approval of the accounts. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

d) Income

Income is recognised when: the charity has entitlement to the funds; any performance conditions attached to the income have been met, and it is probable that the income will be received and that the amount can be measured reliably.

Revenue grants are credited to the statement of financial activities in the period in which the funding is receivable. Where unconditional entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions, the income is deferred. Investment income is included in the statement of financial activities when receivable. Grant income is either restricted or unrestricted, depending on the conditions attached to the grant.

Income received from the sale of goods and services is recognised in the financial statement in the year in which the good is sold or the service provided. Where contributions from voluntary agreement members have been received in one year, but relate to future years, they are treated as deferred income so that income is recognised in accordance with the membership fee timeframe.

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31

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

e) Expenditure

All expenditure is charged in the period to which it relates on an accruals basis and a liability is recognised when there is a legal or constructive obligation, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. The Charity is registered for VAT due to income generated by some activities and accordingly expenditure excludes any recoverable VAT. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure that relates directly to a particular activity is allocated to that activity. Support costs are attributed to programmes with reference to the proportion of staff working directly on project based activities.

Fundraising costs relate to the costs incurred by the group and charitable company in raising funds for the charitable work. Investment management fees are not allocated to charitable activities.

Governance costs are the costs associated with the governance arrangements of the charitable company. These costs are associated with

constitutional and statutory requirements and include any costs associated with the strategic management of the organisation’s activities.

f) Grant making

Grants payable are charged to the statement of financial activities in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

g) Leases

Operating lease rentals are charged to the statement of financial activities on a straight-line basis over the period of the lease.

h) Taxation

WRAP is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of 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. The subsidiary trading company makes qualifying donations of all taxable profit to the charity. Deeds of covenant have been prepared to allow the subsidiary trading company to make qualifying donations of all taxable profit to the charity.

i) Funds Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund together with a fair allocation of management and support costs.

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity. Designated funds are unrestricted funds ring fenced by the trustees for particular purposes.

j) Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation is provided on all fixed assets at rates calculated to writeoff the cost of each asset evenly over its expected useful life, as follows:

Office equipment: 33% on cost.

k) Investments

Listed 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. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the Statement of Financial Activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Unlisted investments are included at their fair value if this can be quantified accurately otherwise they are included at cost less impairment. Where a company has raised a further round of investment, the fair value of the investment held is based on the latest value of the Company's shares. Any change in valuation is taken to the Statement of Financial Activities.

l) Investments in subsidiaries

Investments in subsidiaries are at cost.

m) Pension costs

Pension costs represent the costs of providing defined contribution retirement benefits under personal pension arrangements and are charged as incurred.

n) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that can be reliably measured, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligations at the reporting date.

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32

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

Cash comprises cash in hand, and deposits repayable on demand or with an original term of less than 30 days.

Short term investments include notice accounts and deposits with an original term of 30 days or more.

Debtors are recorded at their recoverable amount which constitutes the present value for long term debts, the time value of money having been deemed immaterial.

r) Financial instruments

The group only has financial assets 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. Cash held in 32 day notice accounts is treated as a short term investment as it is held for investment purposes.

2 Income from charitable activities

UK Governments
Return of grants to UK Governments
EU Governments
Non EU Governments
Total income from Governments
Business contributions to voluntary
agreements
Restricted donations
Other income
Other UK Government & Local Authorities
Trusts & Foundations
Total income from charitable activities		 Unrestricted
£'000
70
-
-
-
64		 £'000
16,271
(5,970)
(15)
191
813
Restricted		 2021
Total
£'000
16,341
(5,970)
(15)
191
877		 Unrestricted
£'000
57
-
19
10
61
147
1,747
-
1
274
2,169		 £'000
35,854
-
632
-
1,596
Restricted		 2020
Total
£'000
35,911
-
651
10
1,657
134
1,874
-
-
469		 11,290
-
1,158
330
372		 11,424
1,874
1,158
330
841		 38,082
-
18
150
170		 38,229
1,747
18
151
444
2,477 13,150 15,627 38,420 40,589
Bank interest receivable
Income from listed investments		 2021
Total
£'000
32
98		 2020
Total
£'000
149
106
130 255

All income from investments is unrestricted.

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33

Notes to the financial statements

For the year ended 31 March 2021

4a Analysis of expenditure (current year)

Staff costs (Note 8)
Contracted services
Other Expenditure
Grants awarded (Note 6)
Fundraising costs
Governance costs
Support costs
Total expenditure 2021
Total expenditure 2020		 Charitable activities Charitable activities Other
Expenditure
£'000
23
67
(10,036)
-		 Fundraising
costs
£'000
153
46
-
-		 Governance
costs
(Note 6)
£'000
160
31
-
-		 Support
costs
(Note 6)
£'000
1,413
1,584
-
-		 2021
Total
£'000
9,848
10,473
(10,036)
12,274		 2020
Total
£'000
9,638
10,410
-
4,922
Sustainable
production &
consumption
£'000
4,357
3,966
-
8,484		 Waste &
resource
management
£'000
3,742
4,779
-
3,790
16,807
107
110
1,728		 12,311
92
81
1,269		 (9,946)
-
-
-		 199
(199)
-
-		 191
-
(191)
-		 2,997
-
-
(2,997)		 22,559
-
-
-		 24,971
-
-
-
18,752 13,753 (9,946) - - - 22,559 24,970
11,324 13,577 69 - - -

Other Expenditure relates to the release of a provision in AGF as there is no longer an obligation to repay funding for the Cirular Economy Fund back to the grantor.

4b Analysis of expenditure (prior year)

Staff costs (Note 9)
Contracted services
Grants awarded (Note 6)
Fundraising costs
Governance costs
Support costs
Total expenditure 2020
Total expenditure 2019		 Charitable activities Charitable activities Trading costs
£'000
10
59
-		 Fundraising
costs
£'000
77
36
-		 Governance
costs
(Note 6)
£'000
142
55
-		 Support
costs
(Note 6)
£'000
1,490
1,537
-		 2020
Total
£'000
9,638
10,410
4,922		 2019
Total
£'000
8,570
10,024
1,343
Sustainable
production &
consumption
£'000
3,764
1,987
4,056		 Waste &
resource
management
£'000
4,155
6,736
866
9,807
53
90
1,374		 11,757
60
108
1,652		 69
-
-
-		 113
(113)
-
-		 197
-
(197)
-		 3,027
-
-
(3,027)		 24,970
-
-
-		 19,937
-
-
-
11,324 13,577 69 - - - 24,970 19,937
9,144 10,730 63 - - -

The Waste and Resources Action Programme

34

Notes to the financial statements

For the year ended 31 March 2021

5a Grant making

Grant making
Grant making (prior year)
At the end of the year
At the end of the year
Cost
Cost
Sustainable Production & Consumption
Sustainable Production & Consumption
Waste & Resource Management
Waste & Resource Management		 Community
Interest Groups
& Charity/Not
for Profit
£'000
4,112
-		 Grants to
Institutions
£'000
160
-		 Grants to
Local
Authorities
£'000
-
1,480		 Grants to
Business
£'000
4,213
2,309
2021
Total
£'000
8,485
3,789
4,112 160 1,480 6,522 12,274
Grants to
Community
Interest Groups
& Charity/Not
£'000
3,139
84		 Grants to
Institutions
£'000
(4)
-		 Grants to
Local
Authorities
£'000
-
265		 Grants to
Business
£'000
921
517
2020
Total
£'000
4,056
866
3,223 (4) 265 1,438 4,922

5b Grant making (prior year)

The grants were principally awarded under the following schemes: Resource Action Fund funded by Defra, UK Circular Plastics Innovation Fund funded by UK Research and Innovation (UKRI) and the Circular Economy Investment Fund funded by the Welsh Government.

Details of grants awarded can be found at www.wrap.org.uk/awarded-grants.

6 Analysis of support costs

Analysis of governance costs
Staff
Audit
Professional fees
Total
Finance
Information technology
Office
Human resources
Commercial
Executive office
Total		 2021
£'000
330
650
415
706
284
611		 2020
£'000
307
650
415
705
284
666
3,027
2020
£'000
142
35
20
197
Across delivery heads
Across delivery heads
Actual costs incurred
Actual costs incurred
Actual costs incurred
Basis of allocation
Across all heads
Across all heads
Across location heads
Across all heads
2,996
2021
£'000
159
31
-
190

The Waste and Resources Action Programme

35

Notes to the financial statements

For the year ended 31 March 2021

7 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£'000 £'000
Depreciation of tangible fixed assets 44 37
Operating lease rentals - land and buildings 165 139
Auditor's remuneration (excluding VAT):
Audit 28 30
Other services 4 3
Foreign exchange losses (107) (20)

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Other pension costs
Other staff costs
Wages and salaries
Social security costs
Redundancy and termination		 2021
2020
£'000
£'000
7,973
7,910
800
810
891
836
91
72
94
9
9,848
9,637
Group		 2021
2020
£'000
£'000
7,973
7,910
800
810
891
836
91
72
94
9
9,848
9,637
Group		 2021
£'000
7,973
800
891
91
94		 2020
£'000
7,910
810
836
72
9
Charity
9,848 9,637 9,848 9,637

Other pension costs represent employer contributions to defined contribution pension schemes. Redundancy and termination costs are accrued in the accounting period in which they are committed and were fully funded at 31 March 2021.

The number of employees whose total employee benefits (excluding employer pension costs and employers’ national insurance) was above £60,000 for the reporting period as follows:

2021 2020
No. No.
£60,000 - £69,999 11 9
£70,000 - £79,999 5 3
£90,000 - £99,999 2 1
£100,000 - £109,999 1 2
£110,000 - £119,999 1 1
£120,000 - £129,999 1 1
£140,000 - £149,999 1 -

Key Management Personnel

The key management personnel are the trustees and the executive team (listed on page 3). The total employee benefits, including employer’s NI and pension, paid to key management personnel was £1,061,396 (2020: £810,467).

The Waste and Resources Action Programme

36

Notes to the financial statements

For the year ended 31 March 2021

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (cont)

Board of Trustees Remuneration

The Board of Trustees are the Directors of the Charity. During the year there were 9 (2020:10) non-executive directors.

None of the non-executive directors has a service contract. Since becoming a charity in 2014 all the non-executive directors, apart from the Chair, give of their time freely and receive no remuneration. This has been approved by the Charity Commission. The remuneration of the Chair was as follows:

Fees Fees
2021 2020
£'000 £'000
Julie Hill - Chair 35 35

Expenses reimbursed Non-executive trustees £nil (2020: £3,946). Expenses totaling £nil (2020: £3,946) were reimbursed in the year to 0 trustees (2020: 3), as follows:

Total
Travel		 2021
£
-		 2020
£
3,946
- 3,946

9 Staff numbers

Employees
The average number of staff was:
Banbury
Wales
Northern Ireland
Total		 2021
2020
No.
No.
146
141
46
45
3
3
195
189
Group		 2021
2020
No.
No.
146
141
46
45
3
3
195
189
Group		 2021
2,019
No.
No,
146
141
46
45
3
3
Charity		 2021
2,019
No.
No,
146
141
46
45
3
3
Charity
195 189 195 189

Average number of staff in FTE in 2020 was 186 (2020: 177). Staff work on programmes for all funders.

10 Related party transactions

In 2021 WRAP charged AGF Ltd £56k (2020: £39k) for the provision of staff and third-party expertise.

As at 31 March 2021 there is a creditor balance of £122k.

Aggregate donations and distributions from related parties were £5,456k (2020: £549k) of which £99k relates to a Gift aid distribution from AGF and £5,357k relates to a distribution of reserves from AGF which has been invested in the Rathbones Greenbank investment.

The Waste and Resources Action Programme

37

Notes to the financial statements

For the year ended 31 March 2021

11 Taxation on surplus on ordinary activities

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Accelerating Growth Fund Limited distributes under Gift Aid available profits to the parent charity. Its charge to corporation tax in the year was:

a) Analysis of charge in the period

UK corporation tax at 19% (2020: 19%) on the surplus for the
year on ordinary activities
Current tax
Total current tax
Current tax on income for the period		 2021
2020
£'000
£'000
-
-
-
-
-
-
The group		 2021
2020
£'000
£'000
-
-
-
-
-
-
The group		 2021
£'000
-
-		 2020
£'000
-
-
The charity
- - - -

b) Factors affecting tax charge for the period

The current tax charge for the period is lower for the Group (2020: lower) and for the Company (2020: lower) than the standard rate of corporation tax in the UK of 19% (2020: 19%). Taxation is only payable on the interest income earned by the Group.

Surplus before tax on ordinary activities for subsidiary
companies
Effects of:
Non-taxable income
Current tax charge for the period before donation and group
relief
Current tax on income for the period
Surplus on ordinary activities multiplied by the standard rate
of corporation tax in the UK of 19% (2019: 19%)
Distribution under Gift Aid to parent undertaking		 2021
2020
£'000
£'000
10,061
103
1,912
20
(1,893)
4
19
24
(19)
(24)
-
-
The group		 2021
2020
£'000
£'000
10,061
103
1,912
20
(1,893)
4
19
24
(19)
(24)
-
-
The group		 2021
2020
£'000
£'000
-
-
-
-
-
-
-
-
-
-
The charity		 2021
2020
£'000
£'000
-
-
-
-
-
-
-
-
-
-
The charity
- - - -

12 Tangible fixed assets

At the start of the year
Charge for the year
The group and charity
At the start of the year
All of the above assets are used for charitable purposes.
Net book value
At the end of the year
At the start of the year
At the end of the year
Cost
Depreciation
At the end of the year		 Office
equipment
£'000
638

Total
£'000
638
638 638
541
44		 541
44
585 585
53 53
97 97

The Waste and Resources Action Programme

38

Notes to the financial statements

For the year ended 31 March 2021

13 Listed investments

Listed investments
The group The charity
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Fair value at the start of the year 3,502 3,638 - -
Additions at cost 5,950 1,031 5,892 -
Disposal proceeds (4,537) (881) (504) -
Net gain on change in fair value 588 (286) (17) -
5,503 3,502 5,371 -
Cash held by investment broker pending reinvestment 2,696 142 1,969 -
Fair value at the end of the year 8,199 3,644 7,340 -
Unlisted investments
The group The charity
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Fair value at the start of the year 1,396 775 - -
Additions at cost 330 621 - -
Net gain / (loss) on change in fair value 3,380 - - -
Fair value at the end of the year 5,106 1,396 - -

Shares in Sicut Enterprises were revalued in the year to reflect the price of the shares at the latest investment round and revised cashflow forecasts for the company.

Investments comprise:

Property investments
Cash
Other investments
Listed investments (UK)
Listed investment (outside the UK)
Unlisted shares in UK registered companies		 2021
2020
£'000
£'000
1,485
1,812
2,291
1,601
185
-
2,696
142
1,542
89
8,199
3,644
5,106
1,396
13,305
5,040
The group		 2021
2020
£'000
£'000
1,485
1,812
2,291
1,601
185
-
2,696
142
1,542
89
8,199
3,644
5,106
1,396
13,305
5,040
The group		 2021
£'000
1,485
2,159
185
1,969
1,542		 2020
£'000
-
-
-
-
-
The charity
8,199
5,106		 3,644
1,396		 7,340
-		 -
-
13,305 5,040 7,340 -

The Waste and Resources Action Programme

39

Notes to the financial statements

For the year ended 31 March 2021

14 Subsidiary undertakings

The Charity owns the whole of the issued ordinary share capital of the Accelerating Growth Fund Limited (company number 4698093) and WRAP Enterprises Limited (company number 4217608), companies registered in England. The registered office address for both entities is 2nd Floor Blenheim Court, 19 George Street, Banbury, OX16 5BH. The share capital of each of the companies is £1.

The subsidiaries are used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the parent charity.

Julie Hill, Trustee and Chair of WRAP, together with Marcus Gover, Chief Executive, Peter Maddox, Director WRAP UK (resigned 9th December 2020), Sarah Chapman, Trustee of WRAP, Susan Corbett, Trustee of WRAP (appointed 16 December 2020) and Claire Shrewsbury, Innovations & Insights Director (appointed 16 December 2020) are also directors of the Accelerating Growth Fund Limited.

Julie Hill, Trustee and Chair of WRAP, together with Marcus Gover, Chief Executive are directors of WRAP Enterprises Ltd.

A summary of the results of the subsidiary is shown below:

Distribution
Interest receivable and similar income
Interest payable
Net gains on investments
Total retained earnings carried forward
Assets
The aggregate of the assets, liabilities and reserves was:
Income
Retained earnings
Operating surplus/(deficit) on ordinary activities
Total comprehensive income
Direct expenditure
Operating deficit
Administrative expenses
Total retained earnings brought forward
Total comprehensive income
Distribution under Gift Aid to parent charity
Operating surplus
Taxation surplus on ordinary activities
Reserves
Liabilities		 2021
2020
£
£
-
-
(56,304)
(39,489)
(56,304)
(39,489)
10,002,695
(30,167)
9,946,391
(69,656)
115,363
172,964
(373)
-
4,090,129
(295,508)
14,151,510
(192,200)
-
-
14,151,510
(192,200)
6,079,419
6,400,265
14,151,510
(192,200)
(98,620)
(128,646)
(5,357,428)
-
14,774,881
6,079,419
14,900,458
16,206,768
(125,577)
(10,127,349)
14,774,881
6,079,419
AGF		 2021
2020
£
£
-
-
(56,304)
(39,489)
(56,304)
(39,489)
10,002,695
(30,167)
9,946,391
(69,656)
115,363
172,964
(373)
-
4,090,129
(295,508)
14,151,510
(192,200)
-
-
14,151,510
(192,200)
6,079,419
6,400,265
14,151,510
(192,200)
(98,620)
(128,646)
(5,357,428)
-
14,774,881
6,079,419
14,900,458
16,206,768
(125,577)
(10,127,349)
14,774,881
6,079,419
AGF
(56,304)
10,002,695		 (39,489)
(30,167)
9,946,391
115,363
(373)
4,090,129		 (69,656)
172,964
-
(295,508)
14,151,510
-		 (192,200)
-
14,151,510 (192,200)
6,079,419
14,151,510
(98,620)
(5,357,428)		 6,400,265
(192,200)
(128,646)
-
14,774,881 6,079,419
14,900,458
(125,577)		 16,206,768
(10,127,349)
14,774,881 6,079,419

Amounts owed to/from the parent undertaking are shown in note 17.

Included within administrative expenses above is a management charge of £56,304 (2020: £39,189) from the parent entity.

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40

Notes to the financial statements

For the year ended 31 March 2021

15 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

16

Result for the year
Royal London Asset Management funds
Total
Short term investments
Bank deposits
Gross income		 2021
£'000
21,128
(11,433)
2021
2020
15,296
17,565
7,276
7,069
22,572
24,634
The group		 2021
£'000
21,128
(11,433)
2021
2020
15,296
17,565
7,276
7,069
22,572
24,634
The group		 2020
£'000
41,199
16,303
2021
2020
10,069
10,056
4,152
4,053
The charity		 2020
£'000
41,199
16,303
2021
2020
10,069
10,056
4,152
4,053
The charity
22,572 24,634 14,221 14,109

Bank deposits are held at a number of High Street banks, under which access to cash is restricted for up to 100 days. Funds invested in Royal London Asset Management are financial assets. Of the short term investments, £8,351,635 (2020: £10,525,100) is held by subsidiary trading companies and not available for use by the Charity.

17 Debtors: amounts falling due within one year

Debtors: amounts falling due within one year
Trade debtors - Grants receivable
Trade debtors
Other debtors
Amounts due from group undertakings
Prepayments		 2021
2020
£'000
£'000
373
3,426
1,242
1,431
-
-
54
572
78
46
1,748
5,475
The group		 2021
£'000
373
1,243
122
54
78		 2020
£'000
3,426
1,431
166
572
46
The charity
1,748 5,475 1,871 5,641

18 Creditors: amounts falling due within one year

Other creditors
Other taxes and social security
Accruals and deferred income
Trade creditors		 2021
2020
£'000
£'000
847
872
348
257
586
-
12,845
7,229
14,626
8,358
The group		 2021
2020
£'000
£'000
847
872
348
257
586
-
12,845
7,229
14,626
8,358
The group		 2021
£'000
847
348
586
12,842		 2020
£'000
872
257
-
7,226
The charity
14,626 8,358 14,623 8,355

19 Deferred income

Deferred income comprises

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
2020
£'000
£'000
1,634
1,582
(1,590)
(1,484)
1,699
1,536
1,743
1,634
The group		 2021
2020
£'000
£'000
1,634
1,582
(1,590)
(1,484)
1,699
1,536
1,743
1,634
The group		 2021
2020
£'000
£'000
1,634
1,582
(1,590)
(1,484)
1,699
1,536
The charity		 2021
2020
£'000
£'000
1,634
1,582
(1,590)
(1,484)
1,699
1,536
The charity
1,743 1,634 1,743 1,634

Additions relate to grants and contracts where payment has been made but performance conditions have not yet been satisfied. These monies will be repaid if the performance conditions are not satisfied in the future. Releases relate to grants awarded in prior years where performance conditions have now been satisfied during the year.

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Notes to the financial statements

For the year ended 31 March 2021

20 Provisions for liabilities

Provisions for liabilities comprises

At 1 April 2020
Amount released in the year
Increase in provision in the year
At 31 March 2021
At 31 March 2020
At 1 April 2019
Amount released in the year
Increase in provision in the year		 WRAP
£'000
404
(7)
612		 AGF
£'000
9,959
(10,041)
82
Total
£'000
10,363
(10,048)
694
1,009 - 1,009
WRAP
£'000
291
-
113		 AGF
£'000
9,868
(6)
97
Total
£'000
10,159
(6)
210
404 9,959 10,363

The Provisions in WRAP represent the directors’ best estimates of the future costs of liabilities relating to operational activities including dilapidations on the rented properties, the holiday pay provision and monitoring provisions for grants awarded. Refer to Note 24 for indications of expected timing of expiry of property leases.

The AGF provision represented the possibility of repaying surplus funding for the Circular Economy Investment Fund back to Defra should the programme be terminated. This is no longer expected to occur based on a perpetual MMI strategy approved by the Board. The strategy is to retain a circular economy investment fund that will be further invested in funds and SMEs that are aligned with WRAP’s charitable objective.

21 Financial instruments

Financial instruments Financial instruments
General
unrestricted
£'000
-
7,340
(1,561)
-
5,779
Financial assets measured at fair value through profit and loss
Listed investments
Net assets at 31 March 2021
Tangible fixed assets
Analysis of group net assets between funds (current year)
Investments
Provisions
Net current assets
Short term investments		 £'000
-
5,965
16,982
-
Designated
funds		 2021
£'000
3,776
7,276		 2020
£'000
3,413
7,069
Restricted
funds
£'000
53
-
5,649
(1,009)
Total funds
£'000
53
13,305
21,070
(1,009)
5,779 22,947 4,693 33,419

22a Analysis of group net assets between funds (current year)

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42

Notes to the financial statements

For the year ended 31 March 2021

22b Analysis of group net assets between funds (prior year)

Total restricted funds
Total Designated funds
General funds
Designated funds:
WRAP
Movements in funds (current year)
Restricted funds:
Unrestricted funds:
Core programmes
Waste and Resource Management
Accelerating Growth Fund Limited
Total unrestricted funds
WRAP Investment Fund
Total assets less current liabilities
Provisions
Net assets at 31 March 2020
Core programmes
Total funds
Sustainable Production and Consumption
Tangible fixed assets
Investments		 £'000
15,021
6,819
At 1 April 2020		 General
unrestricted
£'000
-
-
7,749
-		 £'000
-
5,040
11,487
(9,959)
Designated
funds		 Restricted
funds
£'000
97
-
22,147
(404)
Total funds
£'000
97
5,040
41,383
(10,363)
36,157
£'000
2,468
2,225
4,693
At 31 March
2021
7,749 6,568 21,840
£'000
4,015
9,135
Income &
gains		 £'000
16,535
13,729
Expenditure &
losses		 £'000
(33)
-
Transfers
21,840 13,150 30,264 (33)
6,079
489
-		 4,205
-
-		 (9,946)
588
-		 (5,455)
815
7,340		 14,775
716
7,340
22,831
5,895
28,726
33,419
6,568
7,749		 4,205
2,466		 (9,358)
1,653		 2,700
(2,667)
14,317 6,671 (7,705) 33
36,157 19,821 22,559 -

23a Movements in funds (current year)

The £4,693k (2020:£21,840) of restricted reserves consists of £2,220k of grant funding for work continuing into 2021/22 and £2,473k to cover specific future commitments (primarily programme shutdown costs). The reduction in reserves is largely due to the RAF grant; of the £15,230 held at the 31 March 2020, £9,934k has been expended in the financial year 20/21, £4,761k has been returned to Defra prior to the year-end and £535k will be returned post year-end.

£13,916k (2020: £6,079k) of the reserves in Accelerating Growth Fund Limited are designated by the trustees to support the activities of the company, namely providing financial support and investment to companies who are investing in or changing to a "circular economy" business model. The remaining £859k is designated as an ESG focused financial investment fund.

The Trustees have designated £8,056k of reserves in the parent charity (2020: £489k), of which £7,340k is financial investments managed by Rathbones Greenbank. They have also designated £560k for fundraising costs for 3 years, At the end of March 2021 there is £490k remaining and £226k of the designated funds to fund the expansion of WRAP's international work.

The transfer between Designated and General funds represent the surplus generated in AGF in 2020/21 which has been distributed to the parent charity under gift aid, £99k, and the dividend paid to WRAP from AGF, £5,357k, together with a £2m transfer from WRAP's general funds to the Investment Fund managed by Rathbones Greenbank.

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Notes to the financial statements

For the year ended 31 March 2021

23b Movements in funds (prior year)

Total restricted funds
Total Designated funds
General funds
WRAP
Total funds
Sustainable Production and Consumption
Core programmes
Core programmes
Unrestricted funds:
Designated funds:
Accelerating Growth Fund Limited
Total unrestricted funds
Waste and Resource Management
Rural Community Energy Fund
Restricted funds:		 £'000
2,399
191
3,015
At 1 April 2019		 £'000
21,602
-
16,818
Income &
gains		 £'000
9,145
3
13,014
Expenditure &
losses		 £'000
(23)
-
-
Transfers		 £'000
14,833
188
6,819
At 31 March
2020
5,605 38,420 22,162 (23) 21,840
6,400
1,683		 (123)
-		 69
1,243		 (129)
49		 6,079
489
8,083
6,907		 (123)
2,234		 1,312
1,495		 (80)
103		 6,568
7,749
14,990 2,111 2,807 23 14,317
20,595 40,531 24,969 - 36,157

24 Operating lease commitments payable as a lessee

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Property
The group The charity
2021 2020 2021 2020
Total lease commitments £'000 £'000 £'000 £'000
Within one year 188 97 188 97
between 2-5 years 255 390 255 390
Financial commitments at the end of the year 443 487 443 487

The Company had conditional operating commitments of £896,843 at 31 March 2021 (2020: £1,094,678) which relate to purchase orders raised as at the balance sheet date for project and overhead costs which will be incurred in the following year.

25 Legal status of the charity

The charity is a company limited by guarantee and has no share capital.

The Brewin Dolphin portfolio of £859k held by AGF at the 31 March 2021 was fully transferred to Rathbones Greenbank by the 6th May 2021.

26 Post balance sheet events