REGISTERED COMPANY NUMBER: 03522144 (England and Wales)

REGISTERED CHARITY NUMBER: 1069557

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 March 2025

for

Powys Association of

Voluntary Organisations

Cymdeithas Mudiadau Gwirfoddol Powys

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

11

Report of the Independent Auditors

12

to

15

Statement of Financial Activities

16

Balance Sheet

17

Cash Flow Statement

18

Notes to the Cash Flow Statement

19

Notes to the Financial Statements

20

to

38

TRUSTEES

Mrs W C Beaven

Mrs P A Buchan (resigned 7.11.24)

Mr J Burt

Mrs M H Evitts

Mrs D C Jones (resigned 7.11.24)

Mr G Mitchell

Cllr. W D Powell

Mr P R Swanson

Mrs M Francis

Ms L Griffiths (appointed 7.11.24)

Ms J E Owen Adams (appointed 27.9.24)

Mr D R Price (appointed 7.11.24)

Ms E Wozencraft (appointed 29.11.24)

COMPANY SECRETARY

Mrs A S L Owen

REGISTERED OFFICE

Unit 30 Ddole Road Enterprise Park

Llandrindod Wells

Powys

LD1 6DF

REGISTERED COMPANY NUMBER

03522144 (England and Wales)

REGISTERED CHARITY NUMBER

1069557

AUDITORS

D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

BANKERS

HSBC Bank Plc

The Cross

1 Broad Street

Newtown

Powys

SY16 2LX

KEY MANAGEMENT TEAM

Chief Executive Officer

Mrs C Swales

Head of Internal Services

Mrs A Owen

Head of Third Sector Development

Mrs M Muireasgha - left 31 January 2025

Head of Health, Well-being & Partnerships

Mrs S Healey

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

PAVO's mission statement is-

PAVO provides essential services to support third sector organisations and to improve people's lives.

This is encapsulated in 'Helping organisations; improving people's lives'.

The stated objects of the organisation were reviewed in 2021 and the updated version was approved by the members at the 2021 AGM. They are-

(1) To deliver and fulfil any charitable purposes that are consistent with the stated values of the organisation for the benefit of the public, principally but not exclusively in the local government area of Powys and its environs (hereinafter called the "area of benefit") and, in particular, build the capacity of third sector organisations and individuals, and provide them with the necessary support, information and services to enable them to pursue or contribute to any such charitable purpose.

(2) To promote, organise and facilitate co-operation and partnership working between third sector, statutory and other relevant bodies in the achievement of the above purposes within the area of benefit and to that end to bring together into membership of the Charity persons and organisations engaged in the furtherance of the said purposes within the County of Powys.

Our strategic and business planning processes ensure that all activities undertaken within the organisation are designed and delivered in furtherance of our mission statement and these charitable objects, having regard to the Charities Commission guidance on public benefit.

Previous strategic planning cycles have covered a period of three years. The trustees have decided to move to a five-year cycle from 2022 onwards. This will bring the PAVO planning cycle into alignment with those of key partners. PAVO's strategic purpose is to be:

- PAVO is a CATALYST for voluntary action

- PAVO articulates a legitimate VOICE on behalf of Powys' Communities & Third Sector

- PAVO is a HUB of essential information

- PAVO is effectively governed and managed

Following a period of external and internal engagement, the Board at its meeting on 29th March 2019 adopted the plan. The outcomes within the strategic plan align to local and national shared outcomes.

The PAVO business plan for 2024-2025 details the operational objectives that were set for the year under each strategic purpose, to deliver these planned outcomes.

Half-yearly report cards were developed to inform the Board of progress towards the achievement of the strategic and operational objectives and the activities undertaken in the year in furtherance of these operational objectives, and the difference that these made.

Grantmaking

PAVO does not provide grants directly from its own funds but acts as sponsor for various grant schemes. Grant making policy is therefore determined by the terms and conditions laid down by the funders of the individual schemes, which are incorporated into the rules for applications to each grant fund.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

- How our activities delivered public benefit

Details of key expenditure relating to each of the strategic purposes, as well as key achievements against the operational objectives set out in the Business Plan for each of these, are highlighted below, illustrating some of the ways in which our work has made a difference. Information on all of our achievements may be found in the report cards for the year.

PAVO is a Catalyst for Voluntary Action

Planned Outcomes & Measures:

- Those involved in running third sector organisations have increased confidence in leading their organisations, improved ability to recruit and retain skilled trustees and increased skills and knowledge to lead their organisations

- Third sector organisations are resourceful and have the skills, knowledge and capacity to sustain their organisations

- Those involved in third sector organisations are better able to access information, advice and support on governance

- Third sector organisations develop and provide services that effectively address identified needs

- More individuals and communities access activities, services and facilities provided by third sector organisations

o 1189 Activities delivered to support trustees

o 1286 Occasions when support provided to improve resilience and sustainability

o 375 Occasions when support provided to establish a new organisation or service

o 328 Participants on training courses

o 669 Organisations provided with advice and guidance

o 475 Interactions involved an aspect of governance

o 2226 People had support from the Community Connector Service

o 286 People received support from Powys Befriending Service

During this financial year there were a number of short-term funded projects resulting in a temporary increase in officer capacity and an increased opportunity for bespoke organisational support, this is reflected in higher than average statistics for organisational and trustee support. It was valuable for the sector to have access to specialist support for certain areas of organisational leadership and management.

Governance requests involving legal structures and documents is proving to be a growth area.

The training offer continues to provide challenges this year, however a variety of courses have been delivered to meet the needs of the sector.

PAVO continues to host the Heart of Wales Line Community Rail Officer, and this is proving a valuable partnership with the community and transport sectors.

The Active Offer project continues to provide support to third sector organisations and care providers to offer their services through the Welsh language.

- Organisations involving volunteers have access to high quality information, advice and support to recruit

and manage volunteers

- Organisations involving volunteers are able to learn and continuously improve the volunteering experience

- Volunteers contribute their knowledge, skills and experience and are integral to a thriving and

sustainable third sector

- Volunteering grant funds deliver excellent projects as a result of high quality applications from a diverse range of third sector organisations

- Volunteers are engaged in delivering quality services which achieve what matters to communities and individuals

o 105 Occasions when support provided to organisations to recruit and manage volunteers

o 459 Interactions with organisations involved an element of volunteering

o 153 Volunteers involved in delivering Powys Befriending Service

Powys Volunteer Centre continues to support organisations to provide quality volunteering opportunities and attract and retain volunteers, and to support people who wish to volunteer. The Centre worked with Delivery Partners to ensure reach across Powys.

Short-term funded projects supported improvement of digital skills and digital volunteer placements for individuals, and also the recruitment and support of trustees across the county.

This year the Powys Volunteer Centre was subject to an independent review, recommendations included a rename and rebrand and the project will be known as PAVO Volunteering in Powys in future.

The number of volunteers engaged with Powys Befriending Service has increased during the year, and volunteers are benefitting from an improved volunteer support system.

- Third sector organisations effectively secure and generate the resources they need to survive and grow

o 1339 Interactions related to support provided for sustainable funding

o £61,995 awarded following PAVO support

o £2,707,556 awarded via PAVO grant schemes

The largest proportion of officer support is associated with funding, this year organisations received a considerable amount of 1:1 support, some but not all of these activities were associated with bespoke PAVO facilitated grant schemes. Meet the Funder and Funding Fair events continued to prove popular this year, supporting organisations to access direct advice from external funders and grant making foundations.

This year the organisation again increased the number of facilitated grant schemes, this included a number of short term funded projects with attached grant schemes. The amount distributed by PAVO this year was significantly greater than the previous year.

The Regional Integration Fund resources the PAVO Social Value Project. The scheme has enabled communities to identify gaps in services to support health and well-being, and third sector organisations to respond to those needs with a dedicated grant scheme to deliver projects.

PAVO articulates a legitimate VOICE on behalf of Powys' Communities & Third Sector

Planned Outcomes & Measures:

- Third sector organisations meaningfully engage with public bodies in policy development and service co-production

- Public bodies recognize and value the current and potential contribution of third sector organisations

o 1386 interactions involved the theme of Influence & Engagement

Networks facilitated during the year include Community Buildings Network (Virtual), Powys Agri Wellbeing Support, Powys Advocacy Network, the PAVO Health & Wellbeing Network, Dementia Network, Transport Network, Locality Networks, Volunteer Involvers Network and Mental Health Providers Network. The relaunch took the form of a day conference for stakeholders from third and public sector organisations.

The Regional Integration Fund provides resources to support citizen and carer representatives to contribute to the Regional Partnership Board. This ensured that user and carer voices influence at the highest level.

- Third sector organisations play an active role in engaging and working with people and communities, including seldom heard groups

- The voices of individuals and groups inform and influence policy development, service planning and delivery

o We created 106 opportunities for service user participation

o We supported understanding or shaping of co-production of services on 353 occasions

o The voice of people or organisations was used to inform service planning on 280 occasions

The Locality Networks have continued to provide an effective mechanism for organisations to share information, network and consider local needs. A dedicated administrator services the networks and manages membership. Information, data and intelligence from the networks influenced service development and planning via the Social Value Forum.

Work continues to support mental health lived experience participation in service planning and development, as does work to facilitate the older people's forum.

The funding for the Health Promotion Facilitator projects ended during the year.

- PAVO is a valued member of strategic partnerships and makes effective use of the data, intelligence and evidence it gathers to influence discussions so that decisions are made which respect and value what matters to people and communities

- The feedback from individuals supported by third sector services is used effectively in service planning and delivery to ensure that more people are able to do what matters to them.

o 133 issues identified through community service, user or carer participation

o 280 occasions where the voice of citizens, service users, carers or third sector organisations was used to inform policy, planning or the development of services

PAVO officers are members of a variety of partnerships including working groups, multiagency meetings and formal strategic partnerships. This is at local, regional and national level. Whilst this ensures effective flow of information and intelligence between the sectors, it places a demand on staff capacity. Representation at partnership meetings has been subject to review during the year.

PAVO is a HUB of essential information

Planned Outcomes & Measures:

- Individuals have access to high quality information, advice and support to participate in volunteering

- Third sector organisations receive the high quality and effective information, advice and support they require

- The contribution of volunteering to the well-being of Wales is recognised by decision-makers and the

public

o 873 Members of PAVO

o 855 individuals signed up to a volunteer placement

o PAVO recorded 4409 interactions with organisations

Another busy year for advice and guidance. Powys Volunteer Centre continued to work with delivery partner organisations across the county to deliver an effective volunteering service. The Third Sector Support Wales online volunteer management system - Volunteering Wales still continues to pose challenges to PAVO and delivery partners. Recruiting and retaining volunteers remains an issue for the sector, organisations are keen to embed good practice in an effort to promote their volunteering opportunities and are seeking support from PAVO to do so. The Powys Volunteer of the Year Awards celebrated volunteering across the county. For part of the year, the posts of Health and Well-being Information Officer and Mental Health Participation Officer were vacant, resulting in some planned bulletins not going out, capacity was provided within the Administration Team to assist until the posts were filled to ensure that organisations and individuals received timely information.

- Individuals (including professionals supporting individuals) have access to high quality information, advice and support to access third sector activities, services and facilities to achieve what matters to them

- Third sector organisations are able to network, learn from each other, support each other and share best practice

- More individuals achieve what matters to them as a result of joint working by third and public sector organisations

o 1341 Participants at PAVO facilitated networks and forums

o 38 Third sector networking events organised.

o 1087 Occasions when joint working arrangements are facilitated in order to improve services

The Community Connector service continues to experience a high demand for support. A significant aspect of the work includes attendance at Multi-disciplinary Meetings and Virtual Ward Meetings, this ensures effective joint working between public and third sector services to support people to achieve what matters to them.

PAVO is effectively governed and managed

Planned outcomes & measures:

- People, communities and third sector organisations across the whole of Powys have increased awareness of PAVO and services provided.

The communications work continued, further improvements in the effectiveness of social media recorded. New leaflets for each department and services were launched. New style e-bulletins were developed during the year.

- Powys' diverse communities and third sector organisations have improved access to PAVO services and activities.

Delivered a range of activities and services in varying locations and digitally to maximise access for all geographical areas in Powys, and to meet the needs of all communities. We had additional funding during the year to deliver a variety of projects which promoted inclusion via numeracy and digital skills training, with third sector organisations delivering directly to local communities.

- PAVO is a 'digital first' organisation.

Used a wide range of digital applications to maximise access to information and resources. Increased the

use of digital solutions to manage internal processes more efficiently. Delivered a bespoke project during the year to increase digital volunteering opportunities, and support individuals to develop new digital skills.

- PAVO does all it can to tackle climate change and improve sustainability.

Retained the opportunity for hybrid working for staff, and promoted virtual meetings wherever practical thereby reducing travel emissions. We commissioned an energy efficiency survey of Unit 30, and obtained quotations for solar panels for installation during the following financial year.

- PAVO is effectively governed and managed.

Carried out all necessary tasks to ensure the good governance and effective running of the organisation, identifying and managing risks to fulfilling our strategic purpose and to our sustainability. Developed, implemented and monitored the annual PAVO budget to deliver the 2024-25 operational business plan. Continued to carry out the internal audit programme and review of policies and procedures. This year the internal audit programme focussed on: confidentiality and Data Protection and Equality, Diversity and Inclusion. A considerable number of policies and procedures were reviewed, catching up on the backlog arising from the two years of the pandemic. The Annual Staff Survey was carried out and reported to Board. The organisation uses the internal audit programme and the surveys to identify issues and drive forward continuous improvement and developed a new internal quality assurance system to be rolled out during the next financial year.

FINANCIAL REVIEW

Principal funding sources

Overall income generated from trading activities in accordance with its objectives during the year totalled £53,180 (£57,439 - 2024). This included £13,640 (£17,694 - 2024) from all training activities and £22,110 (£22,187 - 2024) from the bookkeeping service. The principal sources of funding, however, continue to be grants, contracts and service level agreements, mainly with national and local government and other statutory agencies and with charitable trusts.

Total funds distributed during the year totalled £2,704,681 (£591,324 - 2024). £320,000 was distributed through the Social Value Forum, £2,145,943 through the Shared Prosperity Fund. A total of £238,738 was distributed through an additional seven grant schemes. The grant funds for which PAVO acted as sponsor during the year were principally funded by Powys Teaching Health Board and Powys County Council largely through the SPF program funded from Central Government.

Investment policy and objectives

Under the Memorandum and Articles of Association, the charity has the power to make any investment that the trustees judge to be appropriate in the interests of the organisation. PAVO Trustees are currently reviewing the process of investments within the organisation.

Reserves policy

At 31st March 2025 PAVO held total funds of £1,809,655 (£1,672,868 - 2024). Of these funds £635,218

(£605,510 - 2024) are restricted and not therefore available for general purposes. Of the remaining £1,174,437 unrestricted funds, no funds have been designated or otherwise committed. £244,977 (£245,768 - 2024) of the unrestricted funds can only be realised by disposing of tangible fixed assets, giving reserves available to cover 6 months operating costs of £907,140 (£821,590 - 2024).

The accounts at the 31 March 2025 show Net income over expenditure of £136,787 of which £29,708 are restricted funds and £107,079 unrestricted.

Established good practice is that charities should hold reserves equivalent to six months of operating costs. PAVO trustees have agreed that the level of reserves held by PAVO should permit the organisation to deliver its services for a period of six months, including long term lease commitments. Based on 2025/26 budgets this amounts to £935,712 (£881,649 - 2024).

The trustees are satisfied that the increased contributions that it is having to make to the PCC pension scheme can continue to be made from projected future income without impact on its planned levels of charitable expenditure. Following the completion of a risk sharing agreement with PCC, PAVO is no longer liable for past service liabilities, the risk of which has passed to PCC.

Pensions

The charity operates a stakeholder pension scheme for all staff other than three long term employees who are members of the PCC scheme, which has been closed for new members since 2005. Following PAVO's auto enrolment staging date in October 2015, all new and current eligible staff have been auto enrolled into this scheme. Staff have the option to opt out of the auto-enrol scheme if they wish and a number have chosen to do so.

The charity participates in the Powys County Council Pension Fund. Up until 31st March 2016 FRS 17 was fully implemented in the financial statements. PAVO has since signed a risk sharing arrangement with Powys County Council. Under this agreement the requirement to make contributions towards any deficit is limited to the possibility of payments in respect of excessive salary increases. It is therefore more appropriate that the pension costs are accounted for on a defined contribution basis, as the risk sharing arrangement means that the definition is more closely related to that definition.

FUTURE PLANS

The organisation has in place a Strategic Plan to cover the period from 2022-2027 to deliver PAVO's strategic purposes: PAVO is a CATALYST for voluntary action, PAVO articulates a legitimate VOICE on behalf of Powys's Communities and Third Sector and PAVO is a HUB of essential information as well as PAVO is effectively governed and managed. The organisational values were revisited, refreshed and updated within the plan. The plan identifies the outcomes we hope to achieve for third sector organisations, communities and individuals. Our identified outcomes contribute to each of our strategic purposes and (working as part of Third Sector Support Wales - TSSW) the key pillars of Good Governance, Effective Influence & Strategic Engagement, Volunteering and Resourcing a Sustainable Sector.

Each year PAVO creates a business plan that outlines the activities planned for the year in order to deliver the strategic purposes. A robust analysis of the operating environment has been carried out, and the actions contained within the Business Plan for 2025-26 is set within the context of the identified opportunities and challenges facing both the organisation and the wider third sector. Third Sector Support Wales changed its planning cycle during the last financial year, and introduced a Strategic Business Case for 2025-28. This updated strategic plan moved away from the original strategic purposes and introduced a Theory of Change based set of outcomes. The PAVO Board reviewed these alongside our organisational strategic purposes and outcomes. The Business Plan for 2025-26 reflects the adoption of some of these new outcomes and is formatted differently to previous years.

The Business Plan sets out the positive outcomes for organisations and individuals which we plan to contribute towards achieving. We plan to deliver a range of activities, projects and services, most of which will contribute to more than one of our strategic purposes.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a registered charity that was constituted as a company limited by guarantee in 1998 and is therefore governed by a Memorandum and Articles of Association. In line with good practice the Board reviewed the governing document in 2021 and the latest version was adopted at the AGM in November 2021.

Membership is open to third sector organisations as defined in Article 4(3) (a) and town and community councils in Powys. In accordance with Article 30(2) prospective members must apply to the Charity in the form required by the Trustees and be approved by the Trustees. At 31 March 2023, the organisation had 833 members. In the event of the company being wound up members are required under Article 3 of the Memorandum and Articles of Association to contribute an amount not exceeding £10.

Recruitment and appointment of new trustees

The Directors of the company are also charity trustees for the purposes of charity law and trustees add value to the board in many different ways. A trustee may act in various capacities and these are all taken into consideration when identifying the skills and attributes required of a new trustee.

The procedure for recruitment and appointment of trustees ensures that an audit of competencies, experience and interest of the current board and of those members who are due to retire or stand down is undertaken before the recruitment process begins.

While nominations from member organisations remain the foundation of the process, the competencies audit is a proactive approach to recruitment among the membership that assists in identifying individuals who might bring the requisite qualities, competency and experience to the PAVO board, while also reflecting the diverse interests of the membership and the ethos of PAVO.

Organisational structure

A new governance structure, reflecting the growth of the organisation and the complexity of its operations, was introduced in 2002 and was updated in November 2010 to a maximum of 9 trustees to be elected, together with up to 3 co-opted and up to 3 ex-officio trustees. Where appropriate, advisory groups that focus on specific projects continue to assist PAVO staff to achieve the outcomes of their projects.

The Chief Executive Officer has delegated powers to exercise all of PAVO's functions not expressly reserved or otherwise delegated by the board. A schedule of these delegated powers is attached to the Rules of the organisation and any delegation of these powers may be exercised by any officer authorised by the Chief Executive Officer either generally or specifically. However, the Chief Executive Officer retains accountability for any delegated function carried out by another PAVO officer.

An Executive Management Team, comprising the Heads of Internal Services, Third Sector Development and Health, Wellbeing and Partnerships, meets regularly, a wider Management Team which includes Senior Officers meets quarterly. The Head of Third Sector Development left during the year, and the role has not been replaced. The responsibilities have been absorbed into the remaining Executive Management posts. These tiers of management assist the Chief Executive Officer in the exercising of the delegated powers and operational management of the organisation.

Induction and training of new trustees

The recruitment and appointment process is structured to ensure that newly appointed trustees have a sound knowledge of the working and structure of the organisation. This is underpinned by the provision of a comprehensive trustee induction pack.

All new trustees receive induction training during the month following their appointment and this is followed up by a further programme of training that is delivered regularly to the whole Board.

Pay policy for senior staff

The directors consider that the board of trustees, and the Executive Management Team, comprising of the Chief Officer and Heads of Department, constitute the key governance and management personnel of the charity responsible for directing, implementing and monitoring the purpose and business of the charity. Trustees are not remunerated but are entitled to claim reimbursement of reasonable expenses of office. Details of trustees' expenses and related party transactions are disclosed in notes 9 and 20 to the accounts.

The remuneration of the CEO is reviewed by a remuneration committee, a sub-group of the board of trustees. The committee makes recommendations to the board regarding CEO remuneration. The trustees benchmark CEO pay against comparable roles and organisations. The salaries of other staff members, including senior managers, are referenced by the National Joint Council for Local Government Services NJC. All pay levels are reviewed annually and normally change in line with any agreement reached through the NJC should the trustees consider that this is appropriate in light of the budget forecasts for the coming period.

Related parties

It is inevitable, given the stated objects of the organisation (see below), that much of the work of the organisation involves working closely with national and local government and other statutory agencies, including the Welsh Government, Powys County Council and the Powys teaching Health Board, with other voluntary organisations, both in Powys and throughout Wales, including the Wales Council for Voluntary Action and other County Voluntary Council partners in the Third Sector Support Wales (TSSW) partnership and with the voluntary and community groups, numbering more than four thousand, that operate in Powys. Systems are in place for trustee declarations of related parties and required transaction disclosures, in 2020 the process was extended to staff and is renewed annually.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

A comprehensive risk register was established in 2006, detailing the risks, current controls in place to mitigate the risks, any further action required, monitoring processes, responsibility for monitoring and assessment and review dates for each of the following areas of potential risk:

Finance

Governance and management

Operations

Environment and external factors

Compliance

The assessments have established that there are no major areas with a high level of uncontrolled risk. They have also enabled the Board of Trustees to develop a risk management action plan to ensure that, wherever possible, further controls are introduced in areas that are currently assessed as presenting a medium or medium to low risk. The full risk register was reviewed by the Senior Management staff in the Spring of 2024 and the review established that no significant changes are required, however a number of small changes were made to reflect the updated context within which the organisation is operating in.

This overarching assessment of organisational risk is supplemented not only by annual reviews of the assessments of risks to the health, safety and welfare of staff but also by a systematic process for the identification of risk in respect of new projects and initiatives and the relevant control measures or mitigations.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Powys Association of Voluntary Organisations Cymdeithas Mudiadau Gwirfoddol Powys for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the 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 charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 6 November 2025 and signed on its behalf by:

Mr J Burt - Trustee

Opinion

We have audited the financial statements of Powys Association of Voluntary Organisations (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the Strategic Report and the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate Accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of trustees' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client's operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

- reviewing the client's system notes and internal controls.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims

- reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they mayinvolve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Aled Davies FCCA (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

6 November 2025

31.3.25

31.3.24

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

2,556

-

2,556

80

Charitable activities

5

Grants and Donations

487,027

4,329,347

4,816,374

2,575,980

Investment income

4

25,806

-

25,806

14,377

Other income

6

53,080

100

53,180

57,439

Total

568,469

4,329,447

4,897,916

2,647,876

EXPENDITURE ON

Charitable activities

7

Grants

73,050

2,631,631

2,704,681

591,324

Expenditure for operational objectives

388,340

1,668,108

2,056,448

1,876,234

Total

461,390

4,299,739

4,761,129

2,467,558

NET INCOME

107,079

29,708

136,787

180,318

RECONCILIATION OF FUNDS

Total funds brought forward

1,067,358

605,510

1,672,868

1,492,550

TOTAL FUNDS CARRIED FORWARD

1,174,437

635,218

1,809,655

1,672,868

31.3.25

31.3.24

Notes

£

£

FIXED ASSETS

Tangible assets

15

244,977

245,768

Investments

16

10

10

244,987

245,778

CURRENT ASSETS

Debtors

17

779,865

577,755

Cash at bank and in hand

1,204,153

1,125,171

1,984,018

1,702,926

CREDITORS

Amounts falling due within one year

18

(419,350

)

(275,836

)

NET CURRENT ASSETS

1,564,668

1,427,090

TOTAL ASSETS LESS CURRENT LIABILITIES

1,809,655

1,672,868

NET ASSETS

1,809,655

1,672,868

FUNDS

21

Unrestricted funds

1,174,437

1,067,358

Restricted funds

635,218

605,510

TOTAL FUNDS

1,809,655

1,672,868

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

The financial statements were approved by the Board of Trustees and authorised for issue on 6 November 2025 and were signed on its behalf by:

Mr J Burt - Trustee

Cash flows from operating activities

Cash generated from operations

1

53,176

89,445

Net cash provided by operating activities

53,176

89,445

Cash flows from investing activities

Purchase of tangible fixed assets

-

(1,300

)

Interest received

25,806

14,377

Net cash provided by investing activities

25,806

13,077

Change in cash and cash equivalents in the reporting period

78,982

102,522

Cash and cash equivalents at the beginning of the reporting period

1,125,171

1,022,649

Cash and cash equivalents at the end of the reporting period

1,204,153

1,125,171

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.25

31.3.24

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

136,787

180,318

Adjustments for:

Depreciation charges

791

880

Interest received

(25,806

)

(14,377

)

Increase in debtors

(202,110

)

(138,828

)

Increase in creditors

143,514

61,452

Net cash provided by operations

53,176

89,445

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,125,171

78,982

1,204,153

1,125,171

78,982

1,204,153

Total

1,125,171

78,982

1,204,153

1.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

33% on cost and 20% on reducing balance

Land and buildings - the charity follows a programme of regular refurbishment and maintenance of its property in order to maintain it to a high standard. Accordingly, in the opinion of the trustees, any element of depreciation would be immaterial and therefore no provision has been made.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.