Charity Number: 1196777
## Mersey Rivers Trust
Report and financial statements For the period ended 31 March 2023
## Mersey Rivers Trust
## Reference and administrative information
for the period ended 31 March 2023
## **Charity number** 1196777 **Registered office and operational address**
Riverview A17 Embankment Business Park Heaton Mersey Stockport SK3 3GN
**Trustees** Trustees who served during the year and up to the date of this report were as follows:
Dr Keith Hendry Chair Professor Peter Batey Trustee Mr Christopher Findley Trustee Mr Terence Clive Gaskell Trustee Mr Nicolas Carter Trustee Mrs Sarah Jenner Trustee Mr David Thompson Trustee Dr Stephen Boult Trustee Mr Alex Clegg Trustee Ms Francesca Sullivan Trustee
Trustees who held title to property belonging to the charity during the reporting period or at the date of approval were:
No property held by Trustees.
|**Key management**|Mr Paul Henbrey|Operations and Delivery Director|
|---|---|---|
|**personnel**|Mr John Sanders|Strategic Planning and Development Director|
|**Bankers**|Name
Triodos||
||Address
Deanery Road, Bristol, BS1 5A||
|**Solicitors**|Name
Slater Heelis||
||Address
86 Deansgate, Manchester, M3 2ER DX 14310 Manchester 1||
|**Independent**|Jennifer Daniel FCCA DChA|Slade & Cooper Limited|
|Examiner|Beehive Mill, Jersey Street,|Manchester, M4 6JG|
1
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The trustees present their report and the unaudited financial statements for the 9 months period ended 31[st] March 2023.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the charity’s constitution, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
The charity was created in 1998 to work in Greater Manchester, Merseyside, Cheshire and Lancashire and has the following objectives:
- To promote, encourage and where applicable deliver projects for the preservation, restoration, and development of urban and rural waterways and their environs, including adjacent estuarine and coastal areas as defined in the area of benefit, for the benefit of the public environment and its wildlife.
- To advance education by raising public awareness of the issues relating to securing, improving, and maintaining such urban and rural waterways and their environs.
- To promote and where applicable deliver projects for the use of and access and to such urban and rural waterways and watersides in the interests of social welfare for recreation and other leisure-time occupation with the object of improving the conditions of life for the public.
The trustees have reviewed the objectives of the Trust and agreed they are still valid.
Since September 2014, the charity has been a Rivers Trust, part of a national network of Rivers Trusts. The charity pays an annual fee and gains the support of the regional and national directors in carrying out Trust activities including employment of staff. Staff are entitled to a Rivers Trust pension scheme.
In June 2017 the Healthy Waterways Trust (operating under the name of the Healthy Rivers Trust) merged with the Mersey Basin Rivers Trust with a consequential change of name to the Mersey Rivers Trust. The charity continued to operate as a member of the Rivers Trust and benefits from a wider volunteer base and the utilisation of the skills and experience of its staff and Trustees. The Trust converted to a Charitable Incorporated Organisation on 20 June 2022.
As in recent years the charity has focused on research into water quality and identification and implementation of improvement and engagement projects. It has also been a valuable forum for discussion between local authorities and water professionals. The charity has engaged with local communities as well as professional networks.
The Trustees have identified a number of key long term strategies to help deliver the aims and objectives of the Trust. The Fisheries Strategy aimed at returning native fish species to our rivers has been developed and been implemented. A second strategy, Access and Recreation aimed at improving access to rivers and waterbodies for the purpose recreational activities such as swimming, water sports, walking, cycling and fishing is under development. Action plans identifying short and long term action to deliver these strategies have also been developed.
The charity is committed to working with local groups and volunteers to report and tackle the major pollution issues affecting our rivers such as sewage overflows, industrial pollution, and fly tipping. In addition, we work with Local Authorities, Politicians, Water Companies and other private companies to highlight issues, develop and implement improvements and identify funding.
2
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The involvement of local volunteers continues to be a key focus area. The charity has engaged with 263 volunteers in the reporting period to help deliver Citizen Science monitoring, invasive species control, riverside litter picks and river restoration projects.
The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
## **Achievements and performance**
The charity's main activities and who it tries to help are described below. All its charitable activities focus on the rivers, waterbodies and their environs in the Mersey Catchment and are undertaken to further the charity’s charitable purposes for the public benefit and in line with FRS102.
The Trust has continued to develop and grow to meet the extensive water quality issues in the Mersey Catchment and has a significant portfolio of approved and funded projects. Permanent staff numbers have remained constant however temporary staff have been employed to deliver peak workloads.
The Trust was again awarded the hosting of three “Catchment Based Approach” (CaBA) catchment partnerships funded by DEFRA via the Environment Agency (£15k per partnership). The hosting of partnership meetings was mainly carried out using video conferencing and webinars however some “live” meetings were introduced towards the end of the financial year. All three partnerships delivered the Environment Agency’s “National Success Measures”
The Trust continues to deliver multi-year river-based improvement projects funded from donations via Enforcement Undertakings relating to the Norbury and Micker Brook sub-catchments. Both projects involved working with partners including Groundwork Greater Manchester and local action groups to identify and deliver local actions such as river clean ups, tree planting and habitat improvements.
Building on the success of the project to deliver 60 farm management plans and farm interventions in the Upper Weaver with Severn Rivers Trust and United Utilities the Trust received further funding from the Environment Agency to continue working with farmers to resolve pollution from agricultural activities. An additional 85 farms were engaged through farm visits, agricultural hubs and invitations to presentations.
Ahead of the proposed implementation of mandatory Biodiversity Net Gain (BNG) requirements ( due January 2024), the Trust was chosen by Mersey Travel to deliver a pilot project to offset the biodiversity impact of a new railway station in Knowsley, Liverpool. Phase 1 of the project involved the identification of measures to deliver BNG credits in the surrounding area with an additional focus on river and wetlands. The Trust has also been selected to deliver the agreed measures in 2023/24.
In partnership with and funded by Highways England the Trust worked with landowners to identify and deliver opportunities to reduce the risk of flooding along major road corridors in the Irwell and Etherow Catchments. MRT provided initial identification and engagement of landowners and farmers and agreed interventions which were then wholly or partly funded by the Trust using advanced fund supplied by
3
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
Highways England. At the end of the reporting period 75% of the agreed interventions have been funded and completed by landowners.
The Trust focussed on three river systems, the River Tame, River Irk and the River Bollin, to deliver a range of activities including working with schools and colleges in socially deprived areas to educate and raise awareness of local rivers, control of invasive species and working with volunteers and action groups to clean up rivers through local litter picks along riverbanks.
Several bids to the UK Government’s Green Recovery programme were submitted either by MRT or MRT through other partners and funding was awarded for work on the River Tame, River Irk and River Bollin. In addition, this funding also supported the running of a trainee project aimed at young people aged between 18-25 resulting in the appointment of a trainee for a period of one year. The trainee has benefitted from significant training and work experience which will prepare them to seek full time employment.
Funding was received from the European Open Rivers Programme to carry out feasibility studies primarily during the next reporting period (2023-24) to remove weirs on the River Alt and River Tonge aligned to the delivery of our fisheries strategy to aid the return of native fish species. If feasible the Trust will apply for further funding to remove the weirs.
The Trust has maintained contact with our volunteer base working with 263 volunteers across a number of events and initiatives such a river clean-ups (16 events), citizen science monitoring (over 50 volunteers trained), litter pick events (5) and habitat improvement measures (14.3ha improved). Volunteers and staff members planted 34,353 trees as part of flood risk reduction measures or habitat improvements.
A key focus was education with the Trust working with 13 schools and engaging with 613 pupils in classroom and/or outdoor site-based events.
## Beneficiaries of our services
The Trust aims to improve the aquatic environment in the Greater Manchester, Cheshire and Merseyside areas for the benefit of local communities, anglers and other river users, environmental action groups and other organisations with similar objectives. Improvements to the environment will benefit the public through cleaner and healthier looking rivers with improved access, education and awareness through public events and volunteer activities.
## **Financial review**
The Trust continues to be run on a sound and improving financial basis resulting from significant donations (Enforcement Undertakings) received in prior years and from grants to deliver environmental projects.
The total income received in the 9 month reporting period was £683,053 (£936,662: 2022 for a 15 month reporting period) and expenditure of £653,083 (£1,130,897: 2022 for a 15 month reporting period). The net income/expenditure of £27,810 resulted from income received for in year projects which were delayed and will be completed in the following financial year and project efficiencies on unrestricted contract work.
The decrease in income and expenditure compared with the last reporting period is largely due to the shorter accounting period resulting from the switch from an unincorporated charity to a Charitable Incorporated Organisation on 20 June 2022.
4
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The key expenditure areas associated with charitable activities such as partnership hosting and project delivery are staff costs (salaries, National Insurance and Pension contributions) of £335,399. Staff costs on a like-for-like basis (pro rata to account for the shorter accounting period increased by 11% because of pay increases to reflect the higher cost of living, additional staff joining the pension scheme and temporary staff employed to deliver peak workload.
The Trust is almost wholly funded by grants and awards to complete environmental projects and initiatives. The principal source of funding is the Environment Agency through its Water and Environment Improvement Fund, Natural Flood Management Fund and Catchment Based Approach. However, the Trust identified this as a medium risk due to a potential reduction in future Government spending and has actively tried to find alternative funding sources to reduce the reliance on Environment Agency funding. The funding is used to deliver projects using Mersey Rivers Trust staff (staff costs recovery) and the use of contractors and consultants (project management). A small number of directly contracted works were carried out on behalf of our partners.
The Trust’s unrestricted funds have increased for the 9 month reporting period to £331,484 (£221,761: 2022 for a 15 month reporting period) reflecting efficiency savings and small surpluses made on unrestricted contracts. The Trust has also identified additional projects which it will fund from unrestricted funds to be delivered in 2023/24.
Restricted funds decreased to £52,758 (£134,671: 2022) mainly as a result of using up restricted funds brought froward from previous period.
## Reserves policy
Reserves are considered to be that part of the Trust’s funds which are freely available for its general purpose after it has met its commitments and covered its other planned expenditure. These unrestricted funds are needed to bridge the gap between the spending and receiving of income and to cover administrative, fundraising and support costs without which the Trust could not function. The trustees consider that due to the expansion and future growth plans for the Trust the ideal level of reserves as of 31st March 2023 would be in the region of £210,000 being 6 months (or 50%) of future annual base operating costs (2023/24) for salaries, insurance, accounting, governance and general administration costs.
The unrestricted “General Fund” of £331,484 includes MRT planned funding (£132,072) to deliver MRT identified projects. The balance of the General Fund of £199,412 will be regarded as ‘MRT Reserves’. Reserves have increased by £34,136 from 2021/22 primarily as a result efficiencies made on project delivery and a reduction in the amount spent on MRT identified projects included in the General Fund.
The reserves stand at 43% of base annual operating costs, lower than the stated reserve policy figure. This will be offset in future years where possible by future project efficiencies and donations.
## **Plans for the Future**
We will continue to deliver our short-term plans which are aligned to our long-term objectives (2050 given the scale of the challenges faced in the Mersey Basin).
5
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The 2050 outcomes will guide the shorter-term strategy for the growth and development of the Trust over the next three years. Allied to the longer-term outcomes, we have developed the following key priorities for the period 2024 to 2027:
- Continue to build robust survey evidence and deliver appropriate measures for river habitat and water quality enhancement in our priority catchments covering:
- River Irk catchment
- River Bollin catchment
- River Tame catchment
- River Alt catchment
- Norbury Brook (including Micker Brook and Ladybrook) sub-catchment of the Upper Mersey
- `o` Rivacre Brook catchment (Wirral)
- "Speke to Spike" northern waterfront of the Mersey Estuary (from the Speke-Garston coastal reserve upstream to Spike Island near Widnes)
- Additionally, we will continue to grow our activities in the Weaver/Gowy and the wider Alt/Crossens catchments which have had a lesser focus historically:
- Continue to work with EA and Natural England on the Alt/Crossens engagement activities with local farming communities
- Farm advice and support of interventions to reduce agricultural impact on receiving watercourses in the Bollin and Weaver catchments.
- The basin-wide footprint of the Trust is a key benefit so we can take a holistic approach. We will therefore seek to maintain the balance between activities in the upper Mersey basin (i.e. Greater Manchester) and the lower Mersey basin (i.e. Cheshire and Merseyside).
- Deliver natural flood management solutions targeted in dialogue with flood risk authorities to those communities that will benefit most from these solutions.
- Expand our education and engagement with local communities in our target catchments, increasing our River Guardian volunteers, volunteer inputs and encouraging local ownership (“Friends” groups).
- Continue to deliver the Trust’s fisheries strategy including agreed priority actions, such as targeted monitoring, addressing migration barriers, physical habitat improvements and improving our engagement with the angling community.
- Completion of an access and recreation strategy for the river systems in the Mersey catchment.
- Improve access and aesthetic quality of the water environment in our priority catchments to encourage more people to gain benefits from their local waterways. This will particularly involve working with our volunteers and “Friends Groups” (including BEACON) with litter clean-ups and carrying out small-scale works to improve access to waterways and enhance biodiversity and river habitat.
- Enhance and expand our relationships with key delivery partners - principally other Third Sector organisations – to support future funding bids.
- Strengthen our links to academic institutions in the Mersey Basin to identify opportunities for collaboration and encourage research into innovative solutions to the challenges we face in the catchment.
- The Trust will also review its operating structure to ensure a fit for purpose organisation designed to meet the significant water quality issues in the Mersey catchment.
## **Structure, governance and management**
Healthy Waterways Trust was constituted by Trust Deed dated 6 October 1998 and deed of variation dated 1st July 1999 and was a registered charity No. 01073152. The Trust was renamed The Mersey Rivers Trust in May 2017.
6
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The Trust applied to the Charity Commission to convert to a Charitable Incorporated Organisation (CIO). The main driver for this action was to reduce the administrative burden of reporting to both the Charity Commission and Companies House (as a Limited Company). The Mersey Rivers Trust Limited Company has been closed and “struck off” the Companies House register. The application to become a CIO was accepted and registered on 25 November 2021. The Trust worked with the Charity Commission to transfer the assets and business of the original Trust to the new CIO which was completed on 20 June 2022.
The Trust constituted itself as a “Foundation CIO” whose only voting members are its charity trustees. The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## _Appointment of Trustees_
The first and current trustees were appointed (and may be removed) by its board of trustees. There should be one third of the trustees or two trustees, whichever is the greater, of those attending a meeting to be quorate.
The charitable objectives of the Trust are such that the trustees believe that it is essential to ensure that the management of the charity is effective and in line with good practice in the charitable sector. In addition, the areas of activity require experience, knowledge and expertise in river basin management, water resources, environmental management and protection, local government and the voluntary sector. The trustees annually review the membership of the trust to ensure an appropriate balance of management and more specialist expertise is available. New trustees are appointed following consideration by the existing trustees collectively. Trustees may serve for a maximum period of three years before standing down or seeking re-election. Each new Trustee undertakes an induction process based on Charity Commission guidance (CC3)
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.
The Trustees delegate the day-to-day operation of the charity including its bank accounts to its two Executive Directors, Mr Paul Henbrey and Mr John Sanders. Governance and strategic direction to meet the objectives of the charity are led by the Trustees.
## Related parties and relationships with other organisations
No trustee receives remuneration or other benefit for their work with the charity. Any contractual relationship with a related party must be disclosed: in the current or previous year, no such related party transactions were reported.
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.
The charity does not have any subsidiaries. The Charity is a member of the national Rivers Trust movement, an umbrella organisation for local Rivers Trust in England, Wales and Ireland. The Rivers Trust campaigns on national issues and provides advice, guidance and support to local Trusts
## Remuneration policy for key management personnel
Remuneration for key staff (Operations and Delivery Director and the Strategic Planning and Development Director) is aligned to the national Rivers Trust guidance “Pay Guide for Rivers Trusts October 2022”
7
Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
The post of Director is designated as Grade 6 – “Director of a small to medium sized Trust”. The appointment of Paul Henbrey was made in November 2016 and John Sanders in July 2019. Remuneration will be reviewed annually by the Trustees.
## Risk management
The monitoring and management of risk is a dynamic process, and the charity faces some level of risk in the activities, events and contracts that it engages in. The trustees have a risk management strategy which comprises:
- an annual review of the principal risks and uncertainties that the charity may face;
- the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
- the implementation of procedures, designed to minimise or manage any potential impact the charity should those risks materialise.
- Governance risks - eg inappropriate organisational structure, difficulties recruiting trustees with relevant skills, conflict of interest;
- Financial risks - eg accuracy and timeliness of financial information, adequacy of reserves and cash flow, diversity of income sources;
- External risks - eg public perception and adverse publicity, demographic changes, government policy;
Compliance with law and regulation - eg breach of trust law and regulatory requirements of particular activities such as fund-raising
The charity’s review of its risk management will continue to help ensure:
- the charity’s aims are achieved more effectively.
- significant risks are known and monitored enabling trustees to make a more effective contribution.
- there is improved forward planning.
## Fundraising
The Trust does not carry out direct fundraising activities.
## **Funds held as custodian trustee on behalf of others**
The Trust does not hold funds or other assets on behalf of other individuals or organisations.
## Statement of responsibilities of the trustees
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
8
## Mersey Rivers Trust
## Trustees’ annual report
## for the period ended 31 March 2023
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees’ annual report has been approved by the trustees on 06 / 11 /2023 and signed on their behalf by
Dr Keith Hendry
Mersey Rivers Trust Chair
9
## Independent examiner’s report
## to the members of
## Mersey Rivers Trust
I report to the charity trustees on my examination of the accounts of the charity for the period ended 31 March 2023 which are set out on pages 11 to 23.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Jennifer Daniel FCCA DChA
Slade & Cooper Limited, Chartered Certified Accountants Beehive Mill, Jersey Street Manchester, M4 6JG
Date ……………………………….
10
## Mersey Rivers Trust
## Statement of Financial Activities
(including Income and Expenditure account) for the period ended 31 March 2023
|Unrestricted
funds
Note
£
**Income from:**
Charitable activities
3
337,597
Investments
4
2,727
**Total income**
**340,324**
**Expenditure on:**
Charitable activities:
5
230,601
**Total expenditure**
**230,601**
6
**109,723**
Transfer between funds
-
**Net movement in funds for the year**
**109,723**
**Reconciliation of funds**
Total funds brought forward
221,761
**Total funds carried forward**
**331,484**
**Net income/(expenditure) for the**
**year**|Restricted
funds
£
342,729
-
**342,729**
424,642
**424,642**
**(81,913)**
-
**(81,913)**
134,671
**52,758**|Total funds
2023
£
680,326
2,727
**683,053**
655,243
**655,243**
**27,810**
-
**27,810**
356,432
**384,242**|_Total funds_
_2022_
_£_
_936,130_
_532_|
|---|---|---|---|
||||**_936,662_**|
||||_1,130,897_|
||||**_1,130,897_**|
||||**_(194,235)_**
_-_|
||||**_(194,235)_**
_550,667_|
||||**_356,432_**|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
11
Mersey Rivers Trust
## Balance sheet as at 31 March 2023
|Note
£
£
**Current assets**
Debtors
10
244,070
Cash at bank and in hand
614,925
**Total current assets**
**858,995**
**Liabilities**
Creditors: amounts falling
due in less than one year
11
(474,753)
**Net current assets**
**384,242**
**Net assets**
**384,242**
**The funds of the charity:**
Restricted income funds
12
52,758
Unrestricted income funds
13
331,484
**Total charity funds**
**384,242**
2023|_£_
_£_
_22,762_
_817,629_
**_840,391_**
_(483,959)_
**_356,432_**
**_356,432_**
_134,671_
_221,761_
**_356,432_**
_2022_|_£_
_£_
_22,762_
_817,629_
**_840,391_**
_(483,959)_
**_356,432_**
**_356,432_**
_134,671_
_221,761_
**_356,432_**
_2022_|
|---|---|---|
|||**_356,432_**|
|||_134,671_
_221,761_|
|||**_356,432_**|
The notes on pages 14 to 23 form part of these accounts.
Approved by the trustees on 06 / 11 /2023 and signed on their behalf by:
Dr Keith Hendry (Chair)
12
## Mersey Rivers Trust
## Statement of Cash Flows for the period ending 31 March 2023
|Note
2023
£
**Cash provided by/(used in) operating activities**
15
**(205,431)**
_Cash flows from investing activities:_
Dividends, interest, and rents from investments
2,727
**Cash provided by/(used in) investing activities**
**2,727**
(202,704)
Cash and cash equivalents at the beginning of the year
817,629
**Cash and cash equivalents at the end of the year**
**614,925**
Increase/(decrease) in cash and cash
equivalents in the year|_2022_
_£_
**_317,585_**|
|---|---|
||_532_|
||**_532_**|
||_318,117_
_499,512_|
||**_817,629_**|
-
13
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023
## **1 Accounting policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a Basis of preparation**
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), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The accounts (financial statements) have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following 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), second edition - October 2019, rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Mersey Rivers Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
## **b Preparation of the accounts on a going concern basis**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
The trustees have made no key judgments which have a significant effect on the accounts.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
14
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **c Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.
## **d Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
15
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **e Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are donations and partnership agreements which the funder has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
## **f Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes salary payments, payments to contractors and other administration costs undertaken to further the purposes of
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **i Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **j Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
16
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **k Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **l Pensions**
Employees of the charity are entitled to join a defined contribution scheme. The charity’s contribution is restricted to the contributions disclosed in note 8. There were no outstanding contributions at the year end.
## **2 Legal status of the charity**
The charity is an unincorporated charity registered in England and Wales.
## **3 Income from charitable activities**
|Catchment partnership
**Total**
**_Previous reporting period_**
_Catchment partnership_
_Subtotal for activity 1_
**Investment income**
Income from bank deposits
Invasive species removal and
river restoration
_Invasive species removal and_
_river restoration_|Unrestricted
£
-
337,597
337,597
_Unrestricted_
_£_
_-_
_437,105_
_437,105_|Restricted
£
342,729
-
342,729
_Restricted_
_£_
_499,025_
_-_
_499,025_
2,023
£
2,727|Total 2023
£
342,729
337,597|
|---|---|---|---|
||||680,326|
||||_Total 2022_
_£_
_499,025_
_437,105_|
||||_936,130_|
||||_2,022_
_£_
532|
All of the charity's investment income arises from money held in interest bearing deposit accounts. All investment income is unrestricted.
**4**
17
## Mersey Rivers Trust
## Notes to the accounts for the period ended 31 March 2023 (continued)
## **5 Analysis of expenditure on charitable activities**
|Staff costs
Contractors expenses
Travel and subsistence
Stationery and telephone
Accountancy fees
Meetings
Equipment
Training
Insurance
IT costs
Administration
Miscellaneous
Charitable donations
Legal and professional fees
Independent examiner's fee
Restricted expenditure
Unrestricted expenditure
**6**
**Net income/(expenditure) for the year**
This is stated after charging/(crediting):
Independent examiner's fee
Governance costs|2023
£
335,399
231,942
16,618
2,512
3,778
1,320
26,231
5,730
6,242
1,167
13,582
988
100
7,474
2,160
655,243
2023
£
424,642
230,601
655,243
2023
£
2,160|_2022_
_£_
503,866
456,519
22,892
1,226
4,990
1,247
36,740
13,041
2,510
6,125
42,151
7,740
15,401
14,289
2,160|
|---|---|---|
|||1,130,897|
|||_2022_
_£_
420,695
710,202|
|||1,130,897|
|||_2022_
_£_
2,160|
18
Notes to the accounts for the period ended 31 March 2023 (continued)
## Mersey Rivers Trust
## **7 Staff costs**
Staff costs during the year were as follows:
|aff costs during the year were as follows:|||
|---|---|---|
|Wages and salaries
Social security costs
Pension costs|2023
£
287,825
27,092
20,482
335,399|_2022_
_£_
439,495
32,289
32,042|
|||_503,826_|
No employees has employee benefits in excess of £60,000 (2022: Nil).
The average number of staff employed during the period was 14 (2022: 13.53). The average full time equivalent number of staff employed during the period was 12 (2022: 12.2).
The key management personnel of the charity comprise the trustees and the Executive Director Operations and Delivery and Executive Director Strategy Development. The total employee benefits of the key management personnel of the charity were £76,955 (2022: £101,006).
## **8 Trustee remuneration and expenses, and related party transactions**
No (2022:nil) trustee received conference expenses during the year (2022:£nil).
Aggregate donations from related parties were £nil (2022: £nil).
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
No other trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2022:nil).
19
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **9 Corporation tax**
The charity is exempt from tax on income and gains falling within 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 these are applied to its charitable objects. No tax charges have arisen in the charity.
## **10 Debtors**
|**Debtors**|||
|---|---|---|
|Trade debtors
Prepayments and accrued income
Other debtors|2023
£
243,486
-
584
244,070|_2022_
_£_
_19,300_
_2,878_
_584_|
|||_22,762_|
## **11 Creditors: amounts falling due within one year**
|Other creditors and accruals
Deferred income
Taxation and social security costs|2023
£
7,522
458,832
8,399
474,753|_2022_
_£_
8,931
465,780
9,248|
|---|---|---|
|||_483,959_|
20
## Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **12 Analysis of movements in restricted funds**
|Total
_Total_
Catchment
partnership
Catchment
partnership
**Name of**
**restricted fund**
_Catchment_
_partnership_
**Current reporting**
**period**
**_Previous_**
**_reporting period_**|at 21
June
2022
Income
Expenditure
Transfers
Balance at
31 March
2023
£
£
£
£
£
134,671
342,729
(424,642)
-
52,758
134,671
342,729
(424,642)
-
52,758
_Balance_
_at 1 April_
_2021_
_Income_
_Expenditure_
_Transfers_
_Balance at_
_20 June_
_2022_
_£_
_£_
_£_
_£_
_£_
_56,341_
_499,025_
_(420,695)_
_-_
_134,671_
_56,341_
_499,025_
_(420,695)_
_-_
_134,671_
**Description, nature and purposes of the fund**
The Catchment Partnerships and associated projects are part of the
DEFRA led initiative Catchment Based Approach (CaBA). The Mersey
Rivers Trust receives funding from DEFRA (via the Environment
Agency) and the European funded Natural Course Project to host three
Catchment Partnerships (Alt/Crossens, Lower Mersey and Upper Mersey
Catchments). Funding is also received to deliver other environmental
projects from the Environment Agency (Water Environment
Improvement Fund (WEIF) and Natural Flood Management Fund and
Water Environment Grants). Transfer to unrestricted funds represents
expenditure that have not been correctly allocated to restricted funds
and surpluses achieved through project efficiencies. The associated
projects have been delivered satisfactorily and signed off by the
funders.
|Balance at
31 March
2023
£
52,758|
|---|---|---|
|||52,758|
|||_Balance at_
_20 June_
_2022_
_£_
_134,671_|
|||_134,671_|
21
## Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **13 Analysis of movement in unrestricted funds**
|_General fund_
General fund
**Current reporting**
**period**
**_Previous_**
**_reporting period_**|a a ce
at 21
June
2022
£
221,761
221,761
_Balance_
_at 1 April_
_2021_
_£_
_494,326_
_494,326_
|Income
£
340,324
340,324
_Income_
_£_
_437,637_
_437,637_|Expenditure
£
(230,601)
(230,601)
_Expenditure_
_£_
_(710,202)_
_(710,202)_|Transfers
£
-
-
_Transfers_
_£_
_-_
_-_|As at 31
March
2023
£
331,484|
|---|---|---|---|---|---|
||||||331,484|
||||||_As at 20_
_June 2022_
_£_
_221,761_|
||||||_221,761_|
## **Name of unrestricted fund Description, nature and purposes of the fund**
General fund The free reserves after allowing for all designated funds
## **14 Analysis of net assets between funds**
|Net current assets/(liabilities)
Total|General
fund
£
331,484
331,484|Designated
funds
£
-
-|Restricted
funds
£
52,758
52,758|Total
£
384,242|
|---|---|---|---|---|
|||||384,242|
22
Mersey Rivers Trust
Notes to the accounts for the period ended 31 March 2023 (continued)
## **15 Reconciliation of net movement in funds to net cash flow from operating activities**
|2023
£
**Net income/(expenditure) for the year**
27,810
**Adjustments for:**
Dividends, interest and rents from investments
(2,727)
Decrease/(increase) in debtors
(221,308)
Increase/(decrease) in creditors
(9,206)
(205,431)
**Net cash provided by/(used in) operating**|_2022_
_£_
_(194,235)_
_(532)_
_42,914_
_469,438_|
|---|---|
||_317,585_|
## **16 Transfer of assets and liabilities**
The assets and liabilites of the unincorporated charity were transferred to a new charitable incorporated organisation on the 20 June 2022.
23