REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
FOUNDATION FOR WATER RESEARCH |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
FOUNDATION FOR WATER RESEARCH |
FOUNDATION FOR WATER RESEARCH |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Report of the Trustees | 1 | to | 6 |
Report of the Independent Auditors | 7 | to | 10 |
Statement of Financial Activities | 11 |
Statement of Financial Position | 12 |
Notes to the Financial Statements | 13 | to | 20 |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The charity's main activities and who it tries to help are described below. The charity's purposes, as set out in the objects contained in the company's Memorandum of Association, focus on the advancement of public education in the science, engineering and management of water resources, water treatment, water supply and use of water, the collection, treatment and re-use of wastewaters, the water environment in general and related subjects, in particular, by disseminating the useful results of relevant research. To achieve this, Foundation for Water Research (FWR): |
- Publishes and disseminates research reports |
- Produces guides and reviews of current knowledge on water-related topics in 'plain English' |
- Organises meetings and workshops on water-environment topics to facilitate the exchange of information and to identify outstanding research requirements |
- Collates research information on key issues from around the world and makes these available via the internet and traditional media |
Public benefit |
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing aims and objectives and in planning future activities. |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities - continued |
The Foundation's Future and Operational Management |
The FWR Trustees made a decision in the spring of 2021 that the Foundation needed to change. They appointed ALP Synergy Ltd to support the Foundation in planning and delivering that change. The key objectives for the organisational change project were: |
1. To support the trustees in identifying and securing an appropriate organisation to adopt the Foundation's assets and Mission. |
2. To manage the transfer of relevant activities and assets to an appropriate organisation(s), ensuring a smooth transition. |
3. To support the Office Manager during the change project, allowing her to ease towards retirement in December 2021. |
4. To close down the Foundation for Water Research and all commitments which have not been transferred, ensuring a strong legacy for the organisation and appropriate reporting to Companies House and the Charity Commission. |
The ALP Synergy Team started on the change project at the beginning of July 2021 and the related activities have been continuing throughout this reporting year. |
Ant Parsons, Director ALP Synergy Ltd, has been managing the FWR and Lesley Parsons, Director ALP Synergy Ltd, has been providing the financial management of the FWR and working with the accountants towards full close down. |
Following a competitive selection process that concluded in March 2022, the FWR Trustees recommended that: |
1. The Institute for Environmental Science (IES) were awarded £2m from the Foundation for Water Research's assets to continue to deliver against the FWR vision and mission. |
2. The CIWEM and Rivers Trust partnership were awarded £600,000 to take forward collaborative projects (including other partners) that seek to transform 'the cacophony of water voices into a choir on water issues'. |
An Extraordinary General Meeting (including FWR members) took place on 3rd May 2022 which resolved that: |
"The Foundation for Water Research should be closed." |
and that, |
"The Transfer of £2m of the FWR assets should go to the Institution of Environmental Sciences (IES). |
£600k of the FWR assets should go to a joint partnership of CIWEM and The Rivers Trust. |
The residual money after all the FWR existing costs have been completed will be transferred to IES." |
All FWR members had previously been contacted and told not to pay membership fees for the year ahead due to the progressing change activity. |
The only remaining staff member of FWR had indicated that he planned to leave on the closure of FWR. The decision had made by the FWR Council in January to pay appropriate redundancy costs and the employee was made redundant in June 2022. All FWR consultants were treated to a final celebratory lunch in Marlow on Thursday 15th September. Debbie Ruck also joined this lunch and was in good spirits and good health. |
The IES was publicly announced as the inheritor to the Foundation for Water Research in June 2022. |
https://www.the-ies.org/news/ies-named-inheritor-foundation |
The FWR / IES Launch event at the Houses of Parliament took place on the 21st July 2022. The event was attended by around 40 water stakeholders and MP Philip Dunne. |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
The Grant agreement was signed with the Institution of Environmental Sciences in August 2022. The initial sum of £650k was transferred and the ALP Synergy team supported the transition of all operational responsibilities to IES. |
The IES developed a draft Transition Plan in November 2022 which is undergoing a number of iterations. When approved by the Trustees this will trigger the second payment to IES of £1,350,000. The IES / FWR Transition Advisory Group was formed in December 2022 and two FWR Trustees joined this group. |
Given the economic situation that arose in the UK in September, the FWR were advised to liquidate their investments immediately. The FWR investments lost over 6% in just a few days in September. The sale proceeds, less the closing management fee, and including the cash already held on deposit, amounted to £1,921,105.92. This situation raised a doubt as to whether there would be sufficient funds to support the draft Grant agreement with CIWEM and the Rivers Trust after the liability of Allen House had been concluded. As a result, The Grant agreement for CIWEM and the Rivers Trust was updated and was agreed in January 2023 triggering the first payment to CIWEM of £200,000. CIWEM / RT also provided their draft implementation plan which has been approved subject to a minor wording change (at the end of May 2023). When finalised this will also trigger the second payment to CIWEM of £300,000. A final payment to CIWEM will be made, up to £100,000 (subject to funds remaining from fulfilling all liabilities), immediately prior to closing the FWR. |
In order to minimise any ongoing liability for the Trustees, the decision was made to take out a run-off Professional Indemnity policy which will provide ongoing protection to cover the cost of defending any claim made against those insured and will reimburse the losses occurring should any claim be upheld against the insured parties. This insurance will be cover a period of 7 years. |
There is also a requirement for business documents to be kept for 7 years after the company is struck off, including bank statements, invoices and receipts. These documents are retained in case there is any need for information or investigation, e.g. from HMRC linked to VAT payments or claims. The ALP Synergy Ltd team have been asked to take responsibility for retaining and storing these documents on behalf of the Trustees for the 7 year period. The team will also remain available to support any enquiries or investigations that may occur for the FWR over this time-period. A payment of 20 days-time was agreed to cover this contingency. |
Allen House Lease Exit |
Potter Associates were instructed in March 2022 to provide support in exiting the lease for Allen House through the least cost option. |
The office at Allen House was gradually emptied of furniture and equipment from September through until January 2023. All leased equipment was returned. The exit fees for these contracts were very high (in the thousands). |
After 9 months of market engagement, agreement in principle was reached in January 2023 with a new Lessee who was keen to take over the lease. However, despite all necessary arrangements being in place the potential new Lessee withdrew at the last minute with no explanation. |
The Trustees have now decided that a full surrender of the Allen House lease to the Landlord is the most sensible option. This is expected to be concluded in September 2023. |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
Charitable activities |
Commissioned Publications |
The Freshwater Biology & Ecology Handbook was completed and published at the FWR / IES Launch event which took place at the Houses of Parliament on the 21st July 2022. |
https://www.the-ies.org/news/launch-freshwater-biology-and |
This was the final publication from the FWR prior to transfer to IES. |
Books and Printed Materials |
The ALP Team sent the hard copy FWR 'core reports' and a range of other reports to the British Library, ensuring their long-term availability. The list of over 480 reports deposited was provided to IES so that they can promote it to stakeholders (e.g. UKWIR). |
FWR Website |
The website (fwr.org) is being maintained by IES to ensure continuity. http://www.fwr.org |
Quarterly newsletters continue to be produced and promoted via the website: |
http://www.fwr.org/NewsLetters/fwr_march23_newsletter.pdf |
NOTICE OF THANKS |
The council wishes to record its thanks to the many organisations and individuals who give their time and advice to FWR. These contributions are very much appreciated. |
FINANCIAL REVIEW |
Financial position |
The operating deficit for the year, before other recognised gains and losses amounted to £1,113,313 (2022: £609,393). The deficit has increased on last year due mainly to provision for the dilapidations and rent to the end of the lease on Allen House. |
Gains of £159,368 (2022 £8,731) were realised on the disposal of the whole investment portfolio during the year. |
Principal funding sources |
The principal source of income remains the income arising from the bank deposits and investments, which amounted to £80,175. Revenue from sales of publications amounted to £437 and no revenue from subscriptions. |
Investment policy and objectives |
As indicated, the Foundation relies upon the investment income to support its operation. Following the decision to close the charity all investments have been sold. |
Reserves policy |
The total reserves at 31 March 2023 amounted to £1,672,702. As agreed by the members a further £1,350,000 of the funds will be passed to The Institution of Environmental Sciences and further £400,000 to CIWEM and the Rivers Trust. The balance will be used to wind up the charity, with any remaining amounts paid to The Institution of Environmental Sciences. |
Going Concern |
In light of the decision to close the charity as detailed in this report, the Trustees do not consider the FWR to be a going concern. This has been used as the basis for the preparation of these financial statements. |
The details of the Trustee's decision and the actions being taken are described above. The Trustees are satisfied that the charity have sufficient resources to meet its liabilities. |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governance Internal Audit |
FWR's accounts are professionally audited each year. These are then considered by the FWR Audit Committee and ultimately agreed by the FWR Council before being presented to the FWR members at the annual general meeting for approval. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Auditors |
57 London Road |
High Wycombe |
Buckinghamshire |
HP11 1BS |
Solicitors |
John Hurdley & Co |
Jones Farm |
Hollington Lane |
Woolton Hill |
Newbury |
Berks |
RG20 9XU |
Bankers |
National Westminster Bank plc |
7 High Street |
Marlow |
Bucks |
SL7 1AY |
Stockbrokers |
JM Finn |
4 Coleman Street |
London |
EC2R 5TA |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Foundation for Water Research for the purposes of company law) are responsible for preparing the Report of the Trustees 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
- select suitable accounting policies and then apply them consistently; |
- observe the methods and principles in the Charity SORP; |
- make judgements and estimates that are reasonable and prudent; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
In so far as the trustees are aware: |
- there is no relevant audit information of which the charitable company's auditors are unaware; and |
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
A resolution proposing the reappointment of Seymour Taylor Limited as auditors of the company will be put to members at the next annual general meeting. |
Approved by order of the board of trustees on |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOUNDATION FOR WATER RESEARCH |
Opinion |
We have audited the financial statements of Foundation for Water Research (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position and 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 (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
Emphasis of matter - conclusions relating to going concern |
The Trustees have made the decision to close the charity and have approved the transfer of the assets after clearing the liabilities to other charities based on the continuation of the vision of Foundation for Water research. The charity has sufficient resources to meet its liabilities. We have concluded that the preparation of the financial statements are in line with our expectations. |
Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOUNDATION FOR WATER RESEARCH |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the 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 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 charitable company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOUNDATION FOR WATER RESEARCH |
Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified in respect of the Charity's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the charity for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK Charities Act. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
As a result of performing the above, we identified revenue deferrals as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response to that key audit matter. Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOUNDATION FOR WATER RESEARCH |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
Use of our report |
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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. |
for and on behalf of |
High Wycombe |
Buckinghamshire |
HP11 1BS |
FOUNDATION FOR WATER RESEARCH |
STATEMENT OF FINANCIAL ACTIVITIES |
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Other trading activities | 3 |
Investment income | 4 |
Total |
EXPENDITURE ON |
Raising funds | 5 |
Charitable activities |
Total |
Net gains/(losses) on investments | ( |
) | ( |
) |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 3,167,240 |
FOUNDATION FOR WATER RESEARCH (REGISTERED NUMBER: 00525927) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
31.3.23 | 31.3.22 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 14 |
Unrestricted funds | 3,167,240 |
TOTAL FUNDS | 3,167,240 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | GENERAL INFORMATION |
Foundation For Water Research is a charitable company limited by guarantee and incorporated in England and Wales. The company's trading and registered office address was Allen House, The Listons, Liston Road, Marlow, Buckinghamshire, SL7 1FD. On 22 June 2023 the company's registered office changed to the address shown on the company information page. The company registered number is 00525927 and the charity registered number is 1086685. |
The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. |
Going concern |
The Trustees made the decision to close the charity on 22 March 2022, the following was approved by the members at an EGM held on 3 May 2022:- |
1. Foundation for Water Research should take action to clear its liabilities, transfer its assets and close down. |
2. The Institution of Environmental Sciences are awarded £2m from the Foundation for Water Research's assets to continue to deliver against the vision and mission. |
3. The CIWEM and Rivers Trust partnership are awarded £600,000 to take forward collaborative projects (including other partners) that seek to transform "the cacophony of water voices into a choir on water issues". |
The charity is no longer a going concern although the Trustees are satisfied that FWR has significant resources to meet its liabilities. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of income, expenditure, assets and liabilities. If in the future such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. |
Income |
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: |
Commercial trading activities |
Income from commercial activities is included in the period in which the income is earned. |
Donations and grants |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Income |
Income from donations and grants is included in incoming resources when these are receivable except as follows: |
- When donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met. |
- When donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. |
Investment income |
Investment income is included when receivable by the charity except for fixed interest bearing securities when the income is included on the accruals basis. |
Expenditure |
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities. |
Cost of operation comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. |
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Short leasehold | - |
Office equipment | - |
Investments |
Investments held as fixed assets are revalued at mid-market value at the Statement of Financial Position date and the gain or loss taken to the Statement of Financial Activities. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market value. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. |
Financial instruments |
The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements. |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Debtors and creditors due within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Financial Activities in administrative expenses. |
Cash and cash equivalents |
Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and in hand and short term deposits with an original maturity date of three months or less. Bank overdrafts are disclosed within creditors on the Statement of Financial Position. |
3. | OTHER TRADING ACTIVITIES |
31.3.23 | 31.3.22 |
£ | £ |
Subscriptions | - | 3,290 |
Sales of publications, handbooks and database | 437 | 687 |
An analysis of income from activities for generating funds by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 437 | 2,864 |
Other | - | 1,113 |
437 | 3,977 |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
4. | INVESTMENT INCOME |
31.3.23 | 31.3.22 |
£ | £ |
Dividends received and fixed interest | 71,804 | 160,110 |
Bank interest received | 8,371 | 22 |
5. | RAISING FUNDS |
Investment management costs |
31.3.23 | 31.3.22 |
£ | £ |
Portfolio management | 4,676 | 11,609 |
6. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Auditors' remuneration | 4,350 | 5,300 |
Auditors' remuneration for non audit work | 30,580 | 22,700 |
Equipment lease and maintenance | 12,348 | 6,456 |
Rent | 102,015 | 183,116 |
7. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
Trustees' expenses |
Travel and accommodation costs amounting to £557 (2022 - £282) were reimbursed to 2 (2022 - 2) members of the council. |
8. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Administration and support |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
9. | TANGIBLE FIXED ASSETS |
Short | Office |
leasehold | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
10. | FIXED ASSET INVESTMENTS |
Listed |
Investments |
£ |
MARKET VALUE |
At 1 April 2022 | 3,165,262 |
Disposals | (3,165,262 | ) |
At 31 March 2023 | - |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | 3,165,262 |
There were no investment assets outside the UK. |
The aggregate historical cost of investments held is as follows: |
2023 | 2022 |
£ | £ |
Historical cost of listed investments | nil | 2,544,057 |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Expiring |
Within one year | - | 32,783 |
Between one and five years | - | - |
- | 32,783 |
14. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.4.22 | in funds | 31.3.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 567,240 | (644,538 | ) | (77,298 | ) |
Insititution of Enviromental Sciences | 2,000,000 | (650,000 | ) | 1,350,000 |
Chartered Institute of Water and Enviromental Management and The Rivers Trust |
600,000 |
(200,000 |
) |
400,000 |
(1,494,538 | ) |
TOTAL FUNDS | (1,494,538 | ) | 1,672,702 |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
14. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 80,612 | (263,313 | ) | (461,837 | ) | (644,538 | ) |
Insititution of Enviromental Sciences | - | (650,000 | ) | - | (650,000 | ) |
Chartered Institute of Water and Enviromental Management and The Rivers Trust |
- |
(200,000 |
) |
- |
(200,000 |
) |
( |
) | ( |
) | (1,494,538 | ) |
TOTAL FUNDS | ( |
) | ( |
) | (1,494,538 | ) |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.21 | in funds | funds | 31.3.22 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 3,454,441 | (287,201 | ) | (2,600,000 | ) | 567,240 |
Insititution of Enviromental Sciences | - | - | 2,000,000 | 2,000,000 |
Chartered Institute of Water and Enviromental Management and The Rivers Trust |
- |
- |
600,000 |
600,000 |
3,454,441 | (287,201 | ) | - | 3,167,240 |
TOTAL FUNDS | 3,454,441 | (287,201 | ) | - | 3,167,240 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 164,109 | (609,393 | ) | 158,083 | (287,201 | ) |
TOTAL FUNDS | 164,109 | (609,393 | ) | 158,083 | (287,201 | ) |
The charity has two unrestricted funds to represent the funds that have been awarded to The Chartered Institute of Water and Environmental Management, The Rivers Trust and The Institution for Environmental Sciences. |
FOUNDATION FOR WATER RESEARCH |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | RELATED PARTY DISCLOSURES |
The charity received £Nil (2022: £168) during the year from four trustees in respect of membership subscriptions. |
No other trustee or person related to the charity had any personal interest in any contracts or transactions entered into by the charity during the year. |
16. | ULTIMATE CONTROLLING PARTY |
The charity is controlled by the council members collectively. |
17. | COMPANY LIMITED BY GUARANTEE |
In the event of winding up, the liability of each member is limited to £10 by guarantee. |
18. | GRANT COMMITMENT |
During the year to 31 March 2023, the Trustees awarded the following grants to be paid out once the conditions for the grant had been met, and based on funds being available; |
The Institute of Environmental Science a grant of £2million, of which £1,350,000 is to be paid after the year end, once the conditions of the grant are met. |
The Chartered Institution of Water and Environmental Management and The Rivers Trust, a grant of £600,000 of which £200,00 was paid in the year and a further £300,000 was paid after the year end, the balance is due on the closure of FWR. |