The trustees present their annual report and financial statements for the year ended 31 March 2025.

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)” (as amended for accounting periods commencing from 1 January 2016)

As an independent Environmental Charity tEC‘s missions is:

• The advancement in education of the public in all matters concerning the environment.

• The preservation and protection of the environment by;

  • The provision of practical support and advice to all individuals and organisations wanting to enhance their environment and reduce their use of natural resources.

  • Raising awareness of environmental issues within all sections of the community.

  • The adoption of sustainable practices amongst the general public, schools and businesses.

The activities of the charity can include:

For Local Authorities and Government-led organisations

• Support Local Authorities with their responses to the climate emergency and adaptation strategies

• The Provision of a free phone advice line for front line staff and members of the public on matters such as fuel poverty, energy efficiency, air quality, waste and recycling, water saving and the grants available for energy efficiency home improvements

• Data interpretation and mapping services

• Response to local and national consultations

• Bid writing Services

• In house training on energy efficiency, sustainability and fuel poverty

• Assistance with ongoing HECA reporting

• Working with Local Authorities to develop sustainable policies, strategies and action plans

• Outreach events promoting sustainability through schools, community or council events    

• Offering advice and guidance on accessing funding for environmental projects

For individuals;

• Free phone advice on: 0800 804 8601 for Southampton and Hampshire residents or 0800 260 5907 for Portsmouth for impartial advice on energy efficiency, keeping warm and well in the home and simple ways to live more sustainably

• Home Visits - to provide bespoke advice on Energy Efficiency and sustainability in the home.

• Guidance on accessing grants and loans and hand-holding support with applications for funding for the most vulnerable

• Energy surgeries in public spaces

• Energy awareness events

• Outreach Mobile advice at community centres, supermarkets, libraries and similar locations

For schools:

• School assemblies and environment-themed activities

• Environmental education workshops

• Road shows, storytelling and fun days to encourage engagement on climate change and sustainability issues

• Staff and governor training in energy and environmental issues

• Water, waste and energy audits

For business:

• Energy and Environmental Audits

• Data interpretation and mapping services

• Guidance on Environmental Management Systems

• Sustainability Strategies

• Green Travel Plans

• In house environmental training

• In house business road shows

• Free phone advice line

• Renewables Feasibility Studies

The Trustees review our aims, objectives and activities each year to ensure that we remain focused and have given due regard to public benefit when planning the charity’s activities.

We continue to run our major fuel poverty, energy efficiency and air quality projects in Southampton, Portsmouth and Hampshire and have achieved some really impressive results.

Over the past year we have:

• Assisted 4,412 households over the phone, by email and at community events/workshops resulting in over £2.25million estimated gains or savings

• Facilitated the installation of 237 large energy efficiency measures including external wall insulation, cavity wall insulation, loft insulation, solar PV, air source heat pumps and essential heating system repairs or replacements. The installation of these measures has resulted in estimated lifetime energy bill savings of more than £963,800 and estimated lifetime carbon savings of more than 2,000 tCO2e.

• Trained 142 frontline workers on energy, affordable warmth and air quality matters

• Secured funding for a retrofit advice service, My Home Made Better

• Recruited, trained and supported 53 Clean Air Champions and engaged 250 health care professionals on air quality across Southampton.

• Led local promotion of Clean Air Night and highlighted local action to tackle air pollution during this year’s Clean Air Day

This year we benefited from support from Hampshire County Council’s behavioural insights team during the pre-launch of the My Home Made Better service. The team’s expertise allowed us to develop a deeper understanding of how our communications can be adapted to influence and motivate householders to take action around retrofit topics.

Business Plan

Of great significance to tEC is the forthcoming changes to local government.

The Hampshire, Southampton, Portsmouth and the Isle of Wight area has been approved by Government for fast-tracked devolution. This will see the region in control of decision making and spending on transport, housing, education, healthcare and local economic development. Elections for the major of Hampshire and the Isle of Wight are due to take place in May 2026 and whoever is elected will lead a new strategic combined authority.

Local government reorganisation is also scheduled to follow and in 2028 the current two-tier system of county councils and district/borough councils will be replaced with unitary councils across the area.

These large-scale changes present both opportunity and threat to the organisation:

Threat in terms of a potential change of policy towards the net zero agenda, a reduction in funding for affordable warmth, retrofit or air quality projects and potentially the loss of key individuals within local authority departments.

Opportunity in terms of the potential for a more coordinated cross-county approach to these agendas and the potential to bid for substantial funding to drive change through larger projects.

We are also waiting on the much-anticipated announcements on the detail of the Warms Home Plan coming in November. Through the plan we are hoping to see much greater public engagement with the net-zero debate, the consolidation of a variety of funding and financing options under a single brand, a concerted effort to make low carbon heating an attractive option for the public and more training and support for supply chains. We are also expecting to see more emphasis placed on Local Authority delivery.

Finally, with increasing incidents of extreme weather we are looking to expand our advice and support into adaptation. We are already offering advice and support during heatwaves and can see this expanding into flood resilience and vector borne diseases as the climate continues to change.

With reference to the above and in consideration of other local and organisational factors The Board of Trustees and the Senior Management Team have agreed on a number of key actions which will help to focus our efforts over the next year.

In the next year tEC will seek to:

• Keep up-to-date with all developments concerning Devolution and local authority reorganisation and engage with decision makers as this significant change takes place

• Work with Local Authorities and Third Sector partners to explore and present the opportunities associated with action on climate and nature to the new Mayoral candidates

• Continue to deliver our new My Home Made Better project providing free and impartial advice on energy efficiency and low carbon technologies to the self-funded market. Delivering this service alongside our affordable warmth projects will provide consistency in the advice given and co-benefits in terms of the advice line and digital offering being accessible and relevant to all homeowners

• Work with a consortium of Local Authorities, third sector organisations and the Net Zero Hubs to identify opportunities to support the role out of advice, support and energy efficiency works under the Government’s Warm Homes Plan

• Continue to work with Southampton City Council on improving and promoting its Southampton Healthy Homes offer and support its Green City vision and initiatives. Southampton is investing significant resource into supporting fuel poor households in the city and through their discretionary funding tEC is able to support many more households than would otherwise have been the case.

• Investigate opportunities to support community energy projects in Southampton and beyond

• Investigate funding opportunities for climate adaptation projects

• Continue to successfully deliver Hitting the Cold Spots project and look for additional funding to expand the reach and scope of the scheme.

• Work with the other Local Authorities on their Net Zero plans particularly with regards to decarbonising housing and improving air quality.

• Secure funding outside of the Local Authorities to allow us to engage with the public on issues of climate change and sustainable lifestyles.

• Endeavour to expand our work looking at minimum energy efficiency standards in the Private Rented Sector

• Build upon our success in delivering Air Quality work and seek additional funding to deliver activities aimed at highlighting the issue and improving air quality in the region.

• Continue to successfully work with a consortium of local charities to deliver Advice in Southampton work and expand the visibility of the group.

• Deliver work under the Flexible Eligibility element of ECO, and LAD/HUG schemes for Southampton, Hampshire and Portsmouth Authorities.

• Continue working closely with Southampton City Council, Portsmouth City Council and Hampshire County Council on projects of mutual benefit - particularly Fuel Poverty and energy efficiency Projects

• Continue to work with the Southampton Warmth for All Partnership and Hampshire Energy Efficiency partnership to promote our services, ;earn from other schemes and investigate opportunities to support large scale regional energy efficiency and fuel poverty projects.

• Continue to investigate opportunities to diversify away from delivering energy efficiency and Fuel Poverty projects. Of particular interest are community energy projects, renewable technologies, battery storage, Air Quality, Waste, Circular Economy and Water projects.

• Continue to develop our communications strategy and raise the profile of the organisation

• Continue to improve the staff development, training and remuneration package

• Continue to establish and maintain a strong network of relevant contacts

Risk Management

The following risks have been identified as relevant to the business:

• Significant risk from changes in local policy towards Net Zero and energy efficiency

• There is a potential that by seeking to deliver able to pay retrofit work alongside our existing affordable warmth and air quality projects that we will overextend ourselves. This is compounded by the fact that certain funding bodies do not allow sufficient mobilisation time or resource for project management and organisational costs.

• Working with financially challenged Local Authority partners is a real risk to the organisation. Whilst the likelihood of any LA’s issuing a section 114 notice has diminished slow payment and a lack of consistency in terms of contract and payment profiles remains a cause for concern.

• There is increasing competition from a number of organisations operating in the retrofit and fuel poverty arena. Whilst we don’t view these as a particular risk at present there is the potential for them to dilute our message and, in the worst case, for vulnerable households not to receive the full range of support that is available to them through Local Authority and tEC managed schemes.

• Whilst a significant increase in the number of staff at tEC has allowed us to support many more vulnerable households it has had an impact on the team leads and particularly the SMT. Training, HR and ongoing support all take time away from other duties and create competing priorities.

• We are dealing with an increasing numbers of clients with complex needs that often require multiple interventions. This is extremely time consuming and often very difficult to manage in conjunction with other elements of our projects.

• The SMT and team leads are under some pressure. We work in a fast paced environment and run complicated multifaceted projects. Our finance manager for example currently only works 3 days a week and is having to deal with nearly double the number of staff and invoices than when she first joined tEC

• Burn out of certain key members of staff is a concern

• Hybrid working continues to present challenges in terms of how best to support staff members and how to monitor and review their work when they are at home.

• There still remain some operational risks from COVID and flu with the potential of multiple staff contracting the virus and associated risks to (and from) our client group

• There continues to be concern over the effects of the economic downturn, and the increasing costs of living. At the same time demand for our services is increasing exponentially.

Mitigation Strategy

A number of strategies have been initiated in order to mitigate identified risks:

• Keeping up to date with developments concerning Devolution and Local Authority reorganisation is seen as crucial during this period of significant change.

• The board and SMT continue to be mindful of staff capacity, particularly with the senior managers who have been working extremely hard on their own projects and also on a variety of additional initiatives to improve organisational processes. We will continue to monitor and look to act quickly where necessary.

• The board and SMT are acutely aware of the need to carefully consider which projects to bid for and work on. There are many opportunities presently and we are committed not to chase funding or to agree to work which will put additional strain on staff. New projects must not only align with our charitable aims and business plan they must also be deliverable, and not at the expense of staff well-being. Again, the SMT will carefully monitor staff workload and capacity and look to redeploy and recruit quickly if more projects come on line.

• Emphasis has also been placed on partnership working with other TSO’s to allow tEC to expand its operations and access alternative sources of funding.

• Strong emphasis continues to be placed on securing additional funding to deliver existing projects going forward and we continue to talk to our partners about the need for more staff resource to support growing numbers of residents contacting us.

• We will update and adopt a range of policies and procedures, particularly around our support structures, training, remote working and reviews. These are designed to complement the new projects coming online and continued hybrid working arrangements. The aim is for us all to feel confident with what we are doing and feel engaged and supported.

• We continue to follow COVID and flu recommendations and have adopted a range of measures including advising staff to get their vaccinations, wash their hands regularly, where masks when appropriate, ventilate the office space and stay away from work if they feel unwell.

• We continue to work closely with Southampton City Council and other Hampshire Authorities to investigate opportunities of mutual benefit.

• The Chief Executive will continue to network and develop new business links with relevant individuals and organisations.

The incoming resources for this accounting period amounted to £1,571,001 (2024 - £1,787,444) of which the operating surplus on activities was £28,837 (2024 - £151,413). The aim is to achieve a minimum of reserves of the equivalent of six months of overheads expenses.

Under the memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish, however to trustees continue to maintain the remit not to invest in anything other than its staff.

As at the year end charity had reserves of £661,811 (2024 - £632,974) of which £112,997 (2024 - £48,846) represents restricted funds and £nil (2024: £30,000) in designated funds.

Governing Document

The Charity is constituted as a Company limited by Guarantee and governed by a Memorandum and Articles of Association incorporated on 16 December 1993. It is registered with the Charity Commissioners under charity number 1031482. The Board of Trustees with advice from the Charities Commission amended their Memorandum and Articles in June 2020. Each member agrees to contribute £1 in the event of the charity winding up.

Appointment of Trustees

As set out in the Articles of Association the trustees are approved by a unanimous vote of the existing board of trustees following a successful interview process. The process includes the Chief Executive obtaining satisfactory references and ensuring that the nominated trustees fully understand their obligations to the charity. New trustees can be nominated throughout the year and are approved to the board at the quarterly board meetings. There is no limit to the time a trustee may serve.

As the majority of the work undertaken by the charity is in partnership with local authorities of Hampshire and the Isle of Wight, the charity welcomes nominees from these authorities. Nominees appointed from local authorities are subject to the appointment process of these bodies and the guidelines on appointment to public office as they apply to Local Government nominees.

Trustee introduction and training

Before being nominated new trustees are briefed by the Chief Executive on their legal obligations under the charity and company law, the content of the Memorandum and Articles of Association, the committee, decision making processes and minimum commitment expected from the new trustee. They also learn in situ about the organisation structure, business plan and recent financial performance of the charity. Having been nominated, the new trustee will meet key employees and be provided with access to operation procedures. They will be encouraged to attend appropriate events to gain greater knowledge of the charity's activities and to help in the undertaking of their role.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Organisation

The Board of Trustees administers the charity and meets formally on a quarterly basis; however meetings on specific matters are arranged as and when required. The Chief Executive is appointed by the trustees to manage the day to day operation of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and activity performance. The trustees are supplied with financial information quarterly and an activity and funding report every six months (or more frequently should need arise).

Related parties

The charity's continued success lays in its steadfast commitment and ability to remain independent, apolitical and non-campaigning.

The charities wholly owned subsidiary, Environment Centre Enterprises Limited, was established to operate any commercial environmental work deemed to not be solely charitable, but which supported environmental best practice or materials to support environmental best practice. In 2024/25 and the previous year this company did not undertake activity or trading.

In accordance with the company's articles, a resolution proposing that TC Group 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 Environment Centre (TEC) 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;

• 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of The Environment Centre (TEC) (the ‘charity’) for the year ended 31 March 2025 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:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;

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 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 directors' 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 company'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 directors 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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements

reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the legal and regulatory principles in the Charity SORP

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. These include Health and Safety, employment law, building insurance, public liability insurance and licencing. The Trustees use an external firm for Health and Safety and employment law, as they believe this will ensure up to date knowledge and systems are used.

- We considered and reviewed the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. These include the review of authorisation limits for bank transactions and authorisation for BACS payments.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. These include Health and Safety, Employment Law and Licencing. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The Environment Centre (tEC) is a registered charity, registration number 1031482, company number 2881225, limited by guarantee in England and Wales. The registered office is Equity & Law House, 14-15 Brunswick Place, Southampton, SO15 2AQ.

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)” (as amended for accounting periods commencing from 1 January 2016). 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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees 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 or grantors 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.

Income, including grant income and income for services supplied, is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributable to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and deprecation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include the costs attributable to the charity's compliance with constitutional and statutory requirements, including independent examination, strategic management and trustee's meeting and reimbursed expenses.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

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.

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.

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.

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.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms on receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Accounts payable are classified as current liabilities if the charity does not have unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date, they are presented as non current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective method.

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 trustees have considered whether there are any critical judgements required in the preparation of these accounts and have concluded that there are non requiring disclosure.

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

The average monthly number of employees during the year was:

No employee received emoluments of more than £60,000 during the year. The total employee benefits of the key management personnel of the charity were £115,404 (2024 - £110,005).

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

Government grants and support are recognised under the accruals basis and recognised in the period to which the income relates.

Deferred income is included in the financial statements as follows:

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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

The specific purposes for which the funds are to be applied are as follows:

Retrofit - Grant funding to deliver the My Home Made Better retrofit advice project across Southampton, Hampshire and Portsmouth. The grant covers delivery costs for tEC and its delivery partners, Energy Alton, Petersfield Climate Action Network (PeCAN) and Winchester Action on Climate Change (WinACC)

HHS2 Practical measures - Ringfence funding for energy efficiency improvements, particularly boiler repairs and replacements, on behalf of Hampshire County Council.

HSF6 - SCC - The grant is for project work relating to Household Support Fund 6, for energy and keep warm advice and support targeted towards vulnerable Southampton city households, particularly those with older people and/or disabled/chronically unwell occupants

HSF6 - HCC - Funding to provide direct guidance, advice and support to households (within the HCC boundary) on a range of energy-related topics, delivered through a mix of remote and face-to-face help, depending on need; and to provide capital grants to eligible homeowners, for heating and or hot water repairs or replacements

HSF5 - The grant is for project work relating to Household Support Fund 5, for energy and keep warm advice and support targeted towards vulnerable Southampton city households, particularly those with older people and/or disabled/chronically unwell occupants.

Southampton City Council (SCC) - Heating and installation at various addresses on behalf of Southampton City Council.

Innovation and Enforcement Grant- To raise property standards by ensuring that all properties being rented out not only meet the Minimum Energy Efficiency Standards (MEES) but are free from any category one and two hazards as defined by housing health and safety rating system (HHSRS), with a particular focus on heating and insulation of the property.

Covid Winter Fund - Delivery of utility voucher support on behalf of Portsmouth City Council (Covid Winter Fund).

HSF4 -SCC - The Household Support Fund vulnerable households - particularly those with older people and/or disabled/chronically unwell occupants. The grant covered staff costs as well as grant increased our capacity/enabled us to provide energy and keep warm advice and support, targeted towards practical items/measures  to help households keep warm or reduce energy and water costs

Carbon Offset Fund- All major developments in Southampton should (as far is a reasonably practicable) comply with the cities ambition for new builds to be Zero Carbon. The primary aim of the Carbon Offset Scheme is to achieve significant carbon reductions on site and to get as close to zero carbon as possible. Once all efforts have been made to achieve this standard any additional calculated carbon emissions will be offset by paying into a carbon offset fund. Offset payments are then collected from developers at an agreed rate using the Section 106 mechanism and ring fenced for carbon reduction/fuel poverty interventions for low income or vulnerable households. tEC administers this fund on behalf of Southampton City Council and is paid a management fee for doing so.

Francis Winham Foundation - A charitable trust that we apply to, on behalf of older residents for heating/energy efficiency works.

Hampshire Energy Advice Service - Hampshire Energy Advice Service (HEAS) support vulnerable households across Hampshire who are struggling to keep warm and well. The project aims to increase the provision of affordable warmth advice across the region to meet the significant increase in demand as a result of the energy crisis. Through our proposed activities we will directly support 3,800 households over the phone, via email, with face-to-face energy advice at events & one-to-one appointments. It will enhance collaboration between partners, maximize efficiency and build capacity to tackle fuel poverty across Hampshire. In addition we will provide practical support through distributing energy saving packs to those most in need.

HCC C4c Grant - The Hampshire County Council Connect for Communities grant was to provide practical support for low income and vulnerable households.

CSE - Grants for individual households via the CSE-administered SSEN Enabling Works Fund. The Enabling Works Fund supports more installations of grant-funded energy efficiency measures.

HSF5 - HCC - Funding to provide direct guidance, advice and support to households (within the HCC boundary) on a range of energy-related topics, delivered through a mix of remote and face-to-face help, depending on need; and to provide capital grants to eligible homeowners, for heating and or hot water repairs or replacements.

Funds Only in Relation to 2024:

Hitting the Cold Spots (RDF/WCC) - Ringfence funding for energy efficiency improvements, particularly boiler repairs and replacements, on behalf of Hampshire County Council.

HSF3 - Capital - The grant was awarded for project work relating to Household Support Fund 3 (1st October 2022 – 31st March 2023), energy and keep warm support targeted towards vulnerable households - particularly those with older people and/or disabled occupants.  The grant was used to provide practical items/measures to households and for TEC staff costs directly related to the purchasing and distribution of items, and the administration and reporting requirements of this funding.

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

The designated fund represents amounts designated by the Board in respect of a potential office move, dilapidations, IT and office equipment, staff training and development, match funding and upkeep of the company vehicle. This fund has now been released to unrestricted reserves as no longer deemed necessary.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

There were no related party transactions during the current or prior year.

The Charity is a Charity limited by guarantee. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the Charity in the event of winding up.