The trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The objects of the Foundation are:
i. to conserve and maintain, protect, restore and improve the environments and habitats of the rivers Wye and Usk, their entire catchments, tributaries, watercourses and estuaries, including the Severn Estuary, together with their fish species especially salmon and other indigenous species of animal and plant life; and
ii. (to advance the education of the public in the understanding of rivers, river corridors and their animal and plant life and the need for the conservation, protection, rehabilitation and improvement of such environments
In 2024 the activities of the Foundation centred on understanding the quantum and causes of the below issues, and delivering the solutions to those issues:
Increase in frequency of extreme high flows
Increasing frequency of extreme low flows
Increasing water temperature
Eutrophication and algal blooms
Excessive soil loss to water
Chemical pollution
Degraded riparian and instream habitat.
Faecal pollution
Fish access
And solving the compounding issues of:
Lack of data evidence and collective knowledge
An environmentally degenerative system
Cross border misalignment between England and Wales
Supply chain pressures
This involved using existing knowledge and techniques as well as developing and delivering new methods and partnerships to restore the rivers and their catchments.
During 2024 the staffing was mostly stable. The team increased by one staff member to 35 by the end of the year. There was a temporary change in CFO during the year due to long term absence.
Performance achieved against objectives
Achievements during 2024 include:
1) Habitat, fish access and invasive weeds
8.8km double bank of stream was restored/improved. 450km of 610km of degraded habitat has been repaired to date.
140 of 175 known fish access barriers have been completed by the end of 2024, the surveys during last autumn found 16 problematic accumulations of woody debris which were eased. This is an annual cost. During 2024 we progressed with a feasibility study and concept design for a more effective bypass for fish to get past Osbaston weir on the Monnow, which was then taken on by EDF as mitigation for Hinkley. This would improve access to almost 900km2 of catchment. It is the largest fish access issue left in the catchment.
212t of lime was introduced to the upper Wye and upper Irfon to mitigate acid waters.
116km of the Wye and 60km of the Usk was surveyed for the remaining giant hogweed plants and Japanese knotweed. These were then treated/killed during the summer. After 15 years we can see the point when we will have eradicated giant Hogweed from the freshwater sections of both rivers.
2) Catchment Advisors (Farm)
A further 53 farmers in Wales and 247 in England were supported by our Catchment Advisors. Over 2,300 of the C.5,200 farmers in our catchment areas have been engaged by either our Catchment Advisors or Habitat team to date.
We are seeing a pronounced change in farmer behaviour in Herefordshire. A recent survey by farm Herefordshire showed an ever-increasing number of farmers now applying less phosphorus than before, therefore starting to wind back the legacy build-up of this nutrient in the catchment's soils. Avara’s road map is helping this process and there is no longer a surplus of P to be disposed of. In Wales there is an increasing willingness to change, but outside the poultry sector the current system limits the ability to do so.
Our team co-ordinated and supported the installation of 16.6km of new hedges to break flow lines and improve ecological connectivity.
3) Nature Based Solutions
Nature Based Solutions continued to design, consent and deliver integrated wetlands to offset housing development with net gain for the rivers, tree planting opportunities and natural flood management. The key achievement was working with Dwr Cymru to develop a nature-based solution which will treat all the sewage.
During 2024 two on farm wetlands to reduce the impact of food production on the rivers were designed and built, funded by the agri-supply chain. Monitoring is showing these are very effective.
The DIME, CaSTCo and SOIL projects are delivering the evidential certainty required for investors to invest and farmers to change practices. This will accelerate during 2025.
112 natural flood management interventions were completed on farms. These are being monitored and the benefit quantified to support further investment.
This is proving to be a new income stream to deliver the fundamental change from a degenerative to a regenerative system that is required if we are to solve the new suite of problems afflicting the rivers.
4) Science
Working across the farm and Nature Based Solutions teams we identified and mapped the soils at risk of leaching P and also soil compaction issues.
During 2024 we supported 90 citizen scientists on the Usk, collecting data.
During 2024 we installed 2 further sondes in the Usk to quantify ammonia issues in the catchment flagged up by the citizen scientists.
192 sites were electro-fished, results analysed and shared.
The Wye Algal project has determined the cause of the eutrophication issues in the Wye. It will report in 2025. The preliminary results were shared with key partners to allow them to adapt practices before the report is published next year.
5) Supply chain
The work with the agricultural supply chain has helped create an environment in which the farmer and agri-businesses make better decisions that take the effect of food production on water and soils into account. This culminated in work by Avara to ensure that no phosphorus generated by its activities would be spread in the catchments that was surplus to crop need by the end of 2024. During 2024 we worked with the farming community to develop ways of stripping the P from manures to allow for the catchment to be brought into P balance by 2028.
Our work with Noble and the EA resolved the uncertainties over the regulations of free-range poultry sites so by enabling the wider supply chain to support changes to the existing infrastructure by increasing farm gate price and thereby de-risk the production of food.
Risks and Opportunities
The trustees regularly review the major risks which the charity faces. Commercial risk is managed on an overall basis as well as on a project by project basis. Risk assessments are formally undertaken and updated, with employees receiving the appropriate training. Our insurance cover is provided by a reputable company and reviewed annually to ensure that levels of cover are adequate for our changing needs. WUF keeps and regularly updates a risk register.
New risks and opportunities have arisen during 2024 and existing ones have been exacerbated, the changes are summarised below:
The highest risks are now around WUF’s ability to realise the new opportunities as grants dry up and we move to service delivery:-
Efficacy of delivery. The move from an output to an outcome approach has flagged up some issues which are being resolved. We are implementing a culture change within the organisation to aid our move towards engaging successfully with external investors in land use change.
Uncertainty around, and short-term nature of, funding. This is reducing functionality and needs to be resolved in 2025 with the development of longer-term opportunities.
Skills level and organisational structure. During 2023 and 2024 WUF introduced significant process and system changes with a new organisational structure. Our next step is to reskill key staff within the foundation to meet the change in funding streams and the move into commercial arenas. It comes with a short-term risk to the foundation, but we have the capability to mitigate this and deliver the change needed in the new environment.
Principal funding sources
Since 2015, the Foundation has been diversifying its funding streams to increase resilience and reduce risk. In 2024 we received 9% of our income from Welsh government and NRW, 7% from Defra, EA and Natural England, 15% from 2 local Councils, 6% from donations, 14% from the agricultural supply chain and supermarkets, 22% from water companies and the OFWAT Innovation Fund, and 1% from private sector contracts. The donations came from individuals, riparian owners and charitable trusts such as the Scott Eredine Trust, the Morley Family Trust, the Jenour Foundation and the Jordan Charitable Trust.
We would like to thank everyone who supported us in 2024 for their generosity. We have maintained our longstanding >1:10, donation to spend ratio by using donations to draw in additional funds.
Fundraising
WUF raises core funds internally through specific appeals to the owners and the wider public and by encouraging people to donate through our website and legacy programme.
WUF adheres to GDPR and raises funds from a pool of known individuals who receive 1 request a year, with a follow up letter if they have not donated, and specific appeals to the wider public. WUF did not receive any complaints about its fundraising activity.
Any request for no further contact is recorded on our database through which we co-ordinate our fundraising.
Investment power and policy
The Memorandum and Articles of Association of the Foundation confers powers on the trustees to invest both the capital and the income of the foundation in any manner as the trustees in their discretion think fit. The policy is to keep any surplus funds in short term deposits or securities, which can be accessed readily. The trustees have recognised that while providing a short term means of achieving our objectives, project funding has been very successful. However, our reliance on it could present limitations on future activities as the trust gets nearer to completion of its capital works programmes. Accordingly, they have instigated a broader fund raising strategy that seeks to address this. The endowment fund is operational and has received donations from generous donors.
Investments are managed by Brewin Dolphin (Cardiff). The Wye and Usk Endowment Committee aims to grow the value of its endowment funds over inflation using a balanced, medium risk investment strategy and a long-term time horizon. Invested funds and donations grew the fund by 13% in 2024 to £400,605 by year end.
Going concern
WUF finished the year with total unrestricted reserves of £366,674 and restricted funds of £355,935.
During 2024 we decreased our total unrestricted reserves by £59,442.
WUF has a portfolio of secured funding through projects and opportunities that are expected to see a further expansion in delivery during 2025. The cash balance at the end of December 2024 was £413,144, plus fixed asset investments of £377,682.
Plans for future periods
In the last 4 years there has been a shift in the ecological focus: work to mitigate problems caused by poor land use are assuming a greater priority as in-stream works, such as fish passes and riparian habitat restoration near completion.
The change in the relationship between rainfall and flood events and the excess phosphorus imperils the ecology of the rivers and the maintenance of our previous riparian work. It is WUF’s priority to reduce the flood risk and bring the catchments back into phosphate balance.
WUF will continue delivering and monitoring the efficacy of its current projects, maintaining existing funding streams and expanding new ones within Natural Capital and the Agri supply chain. We also will continue to strive to increase the endowment fund and working reserves.
WUF will expand during 2025 and will require careful management to ensure efficient and effective delivery. In 2025, we will further develop the opportunities for partnership working and link with other partners initiatives where they align with our objects, with WUF acting as the competent delivery partner were required.
Governing Document
The Wye and Usk Foundation is a company limited by guarantee, registered in England and Wales (company number 03343965), governed by its Memorandum and Articles of Association dated 15 October 1996 as updated on 5 October 1997, 12 February 2000, 19 October 2000, 4 January 2001, 31 July 2002, 22 July 2007, 25 October 2011 and 1st March 2019. It is registered as a charity with the Charity Commission, registered number 1080319.
Appointment of Trustees
The Articles provide -
Any trustee who shall desire to retire shall notify such desire in writing to the secretary and thereupon his/her name shall be removed from the list of trustees and he/she shall cease to be a member of the trust but only if there remain at least three other trustees.
At the conclusion of each annual meeting of trustees one quarter or if their number is not three or a multiple of three, the number nearest to one quarter shall retire from office and unless re-elected in accordance with these articles shall on such retirement cease to be members of the trust.
The trustees to retire by rotation shall be those who have been longest in office, but as between those who became or were elected trustee on the same day those to retire shall be chosen (unless they otherwise agree among themselves) by lot. A trustee who has served for ten years or more is not eligible for re-election and must retire but becomes eligible again after an interval of one year.
The re-election of a trustee for a second term of office shall require the approval of a simple majority of trustees but a third or further term of office shall require the approval of a three quarters majority, such majorities are to be calculated by reference to those trustees voting at the relevant meeting.
Trustee Recruitment
The recruitment of trustees is by advertising. A nominations committee comprising three trustees and the chief executive places the adverts, scrutinises applications, seek references and ensure a balance of trustee skills is in place.
Trustee Induction and Training
Newly appointed trustees receive a letter of appointment including appointment declaration and an induction pack which covers the working of the Trust and the rivers trust movement generally. In addition, trustees are given copies of the Charity Commission’s – The Essential Trustee, what you need to know (CC3) and the Hallmarks of an effective charity.
For ongoing training purposes, the trustees have agreed that workshops and information from the auditors will maintain standards of governance on an ongoing and timely basis. New trustees will be given visits on site to explain the issues and solutions that the trust is currently managing.
Organisational Structure
Officers
At 31 December 2024 the principal officers of the Foundation were:
Simon Evans (Chief Executive)
Jon Fry (Chief Operations Officer)
Sian Gray (Chief Financial Officer)
Consultants:
WUF is fortunate to work with the following experts:
John Lawson (Water Resources)
Tony Norman (Honorary Farming Consultant)
Adam Fisher (Fisheries Marketing Consultant)
Hogan Lovell (Legal Structures of Markets)
Related Parties
Throughout the year to 31 December 2024, the Foundation has continued working in partnership with the above representatives and their organisations and we take the opportunity to thank them all for their very considerable help and support.
Pay Policy for Senior Staff
The trustees consider the board of trustees and the senior management team comprise the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and received no remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in note 27.
The policy used for determining pay for all staff is in line with the guidelines set out each year by the Rivers Trust, the umbrella body for rivers trusts.
There were 2 employees with annual remuneration of £60,000 or more.
Decision Making
The Trustees confirm they have acted in accordance with their legal duties and have had due regard to the guidance published by the Charity Commission. All decisions during the year were made collectively in the best interests of the charity and in furtherance of our stated purposes for the public benefit.
The Trustees' decision-making process is formally documented in the minutes of our board meetings. This ensures that a clear and auditable record exists to demonstrate how key decisions were reached.
Decisions are shared between the board of trustees and key management, with the trustees holding ultimate legal responsibility for the organization. The trustees set the strategic vision and make high-level decisions, while key management handles the day-to-day operations through delegated authority.
Decisions made by the trustees
The board of trustees is responsible for the overall governance, strategy, and direction of the charity. The board of trustees are responsible for:
Strategic direction: Setting the charity's strategic aims, objectives, and future plans to ensure it is carrying out its purposes for the public benefit.
Compliance and policy: Ensuring the charity complies with its governing document, all relevant laws, and best practices. This includes approving key policies on finances, risk management, and safeguarding.
Financial oversight: Maintaining ultimate control over the charity's resources. Trustees approve the annual budget, monitor financial performance, and make major financial decisions, such as taking out large loans or selling assets.
High-risk decisions: Decisions that are especially high-risk, novel, or could significantly impact the charity's reputation.
Appointments: The recruitment, appointment, and management of the charity's most senior staff, such as the Chief Executive.
Accountability: Trustees are accountable to the public, regulators, and beneficiaries, and ensure the charity is transparent and that reporting requirements are met.
Decisions delegated to key management
To ensure the charity can operate effectively, the board of trustees delegates the authority for day-to-day operations and management to key staff.
Operational management: Senior staff are responsible for carrying out the strategic plans created by the management with the trustees and agreed. This includes managing employees, volunteers, programs, and day-to-day finances within the approved budget.
Operational decisions: Many tactical and operational decisions are delegated. This can include approving smaller-scale expenses, managing program logistics, and handling day-to-day human resources matters.
Implementation: Key management implements the policies and strategies established by the board. They provide regular, detailed reports to the trustees so that the board can monitor progress and performance.
Auditor
Azets Audit Services have signified their willingness to continue in office and a resolution to re-appoint them as auditors will be proposed at the forthcoming annual general meeting.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of The Wye and Usk Foundation for the purpose of company law, are responsible for preparing the Trustees' 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- 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 adequate 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 Companies Act 2006. 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 charity 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.
Opinion
We have audited the financial statements of The Wye and Usk Foundation (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the 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 financial statements does not cover the other information and 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 financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Wye and Usk Foundation is a private company limited by guarantee incorporated in England and Wales whose registered office is The Right Bank, The Square, Talgarth, Brecon, Wales, LD3 0BW.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The charity finished the year with general unrestricted reserves of £(33,932), designated funds of £400,606 and restricted funds of £356,015. The free reserves of the charity at 31 December 2024 were £(33,932) and the Trustees have confirmed their wish to retain the designated funds balance.
Although the foundation are ending the year with a negative balance on the general unrestricted reserves, the actual available unrestricted funds are £366,674 when the designated funds of £400,606 are included. The designated funds are held to protect the longevity of the organisation and are not designated for any other specific purpose. In addition, the foundation received a large legacy payment of £142,000 in 2025 and the general unrestricted reserves at the end of August 2025 are positive.
During 2024 we decreased our general unrestricted reserves by £106,596.
WUF has a portfolio of secured funding through projects and other work-streams that will see a further expansion in delivery during 2025. The forecast cash flow is positive for the whole of 2025.
At the time of approving the financial statements, the trustees therefore have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Further explanation of the nature and purpose of each fund are included within the notes to the accounts.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Donated services are recognised in the period to which they relate and valued according to accepted project rates. Gifts in kind are included at market value and as resources expended at the same value when distributed.
Grants from the government and other agencies have been included as income from activities in furtherance of the charity's objects where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom use.
Income from 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. Capital grants are released to the Statement of Financial Activities in the year of receipt. Fixed assets relating to capital grants are capitalised, and depreciation charged is offset against the grant income, in a restricted fund.
Income from the passport scheme is recognised in the period to which the service is provided with any amounts received in advance deferred.
Dividends income is recognised on the date the charity's right to receive payment is established.
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.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Costs of raising funds comprise the costs in relation to generating income and includes investment management fees.
Expenditure on charitable activities includes all costs relating to the furtherance of the charity’s objectives as stated in the trustees report. This also includes all costs relating to compliance with constitutional and statutory requirements.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs. The basis for calculating the allocation of support costs is on the basis of staff time spent on those activities, over and above a material de-minimis.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
The charity's capitalisation policy is to capitalise any assets with a value exceeding £500.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The charity does not have any key or significant accounting estimates.
Donated goods and services relate to the quantifable value of work done by landowners under grant agreements with The Wye and Usk Foundation which is of benefit to, but is not funded by, the charity.
Passport scheme
Miscellaneous
Grants and contract income
Costs of donated services
Direct expenses
Marketing
Motor and travel
Premises and office costs
Financing
Consultancy
During the year the charity paid £145,865 (2023: £98,922) in farm grants to a total of 30 partnerships and individuals (2023: 30). Grants payable costs can be seen within Charitable Activities direct expenses £412,318 (2023: £642,754).
Motor and travel
Premises and office costs
Financing
Marketing
Consultancy
Legal
Other expenditure
Governance costs includes payments to the auditors of £13,900 (2023: £11,710) for audit services and £2,000 (2023: £1,000) for non audit services.
No trustees received any remuneration during the current or prior year.
No trustees were reimbursed expenses during the current or prior year.
The average monthly number of employees during the year was:
Key management personnel
The key management personnel of the charity received benefits (including gross salary, employers national insurance and employers pension contributions) totalling £412,482 (2023: £255,416).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Deferred income is included in the financial statements as follows:
Deferred income relates to prepaid season rods, fishing rod scheme and fishing sales.
There were no amounts due in more than five years (2023: £nil).
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £112,278 (2023: £100,645).
At the year end amounts outstanding totalled £9,872 (2023: £15,518).
Wye River Fund & Projects, including Lugg & Arrow and Monnow
This fund receives donations to further the Foundation's objectives in respect of the River Wye and its tributaries. This includes donations from the Wye Catchment Conservators members, patrons and donors who specify restriction to Wye, Lugg and Arrow or Monnow (Funds to Monnow or Lugg and Arrow are separately restricted). Projects within this restriction remain subject to the individual funder’s constraints as to how and where monies are spent and all are against a pre-set range of milestones and targets.
Usk River Fund and Projects
This restricted fund accounts for monies given in respect of the river Usk. In 2019 these included contributions from the United Usk Fisherman's Association, patrons and donors. As above each project has its own pre-set set of restrictions
Usk and Wye River Projects and Funds
This fund receives project funds and general donations that are spent on activities that improve both river systems. Funders include: Invasive weed funding and the Passport.
Natural Capital
The fund receives project funds and commercial income that are spent on setting up and developing Natural Capital Markets which are specifically targeted at improving the water quality and habitats of the rivers. The balance on the commercially funded projects are transferred to Unrestricted Reserves on completion of the projects.
Habitat
The deficit on the fund has arisen due to expenditure being incurred in advance of recognition of income.
Transfers
Funding transfers from Restricted Funds arise when either the pre-agreed budget for an item of expenditure is overestimated and thus a small surplus is generated, or when a fund closes whilst holding a balance, and with the assent of the funder, the balance is transferred to another Wye or Usk fund as appropriate.
Transfers to restricted funds relate to amounts transferred from unrestricted funds to cover any small deficits on fund balances as agreed by the board.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Endowment Fund
The Wye and Usk Foundation Endowment Fund is a long term fund whose capital is invested to generate income to support the works and charitable objectives of the Wye and Usk Foundation. A sub-committee of 4 including at least one current Trustee and the WUF Director are responsible to the Board for selecting, appointing and monitoring the Fund manager. Donors to the fund are able to elect the income generated from their donations to be reserved for a specific catchment or for the general furtherance of the Foundation's charitable objectives.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As part of the Passport scheme amounts of £65,664 (2023: £63,040) were collected by WUF as agent for, and were paid to, Mr M Timmis for the letting of a fishing beat owned by him.
As part of the Passport scheme amounts of £2,624 (2023: £3,796) were collect by WUF as agent for, and were paid to, Ms E Passey for the letting of a fishing beat owned by her.
As part of the Passport scheme amounts of £83 (2023: £Nil) were collect by WUF as agent for, and were paid to, Mr C De Winton for the letting of a fishing beat owned by him.
Income of £5,022 (2023: £270) was received from Norman Partnership for work done.
Income of £514 (2023: £531) was received from P Horsburgh in respect of fishing sales.
Income of £31 (2023: £Nil) was received from A Johnson in respect of fishing sales.
Income of £180 (2023: £Nil) was received from A Lavers in respect of fishing sales.
Income of £115 (2023: £Nil) was received from J Bengough in respect of fishing sales.
Income of £Nil (2023: £416) was received from C Newington-Bridges in respect of fishing sales.
During the year eleven trustees made auction donations, auction purchases and other donations totalling £21,236 (2023: twelve trustees made auction purchases and other donations totalling £28,051).
The Charity acts as an an agent in respect of certain transactions. Where the Charity is acting as an agent, the funds do not belong to the Charity and are therefore not recognised as income or expenditure in the Statement of Financial Activities. During the year the Charity recieved a total of £428,970 (2023: £414,734) and paid out a total of £356,974 (2023: £341,486). As at the year end, the amount held in respect of these transactions was £101,774 (2023: £106,831) and is included within creditors.