The trustees present their report and financial statements for the year ended 31 March 2021.
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)
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:
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.
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 2021/20 and the previous year this company did not undertake activity or trading.
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 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 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
Mobile advice at shopping 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.
Despite the ongoing situation with COVID we have continued 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 2,944 households over the phone, by email and community events/workshops
Facilitated the installation of 136 large energy efficiency measures including external wall insulation, cavity wall insulation, loft insulation, first time central heating and essential heating system repairs or replacements. The installation of these measures has resulted in an estimated lifetime energy bill savings of £509,295 and an estimated lifetime carbon savings of 1,247.96 tCO 2e
Helped vulnerable households access small energy grants valued at £77,499
17,854 people have taken part in 24,789 sessions seeking information and guidance via our website
Trained 63 frontline workers on energy and housing standards, and affordable warmth matters
Delivered two Green Home Grant webinars, reaching 147 people
Delivered 9 energy and housing standards talks, reaching 96 landlords and tenants
Coordinated a target leaflet mail out to 18,497 priority households on the health impacts of wood burning
We have also been successful in securing the Hitting the Cold Spots contract for an additional two years.
During this period we have also moved to smaller offices which has realised some savings for the charity and implemented a number of other austerity measures to help keep service costs as low as possible.
The Board of Trustees and the Senior Management Team have produced a business plan which helps to focus our efforts. In the next year tEC will seek to:
Continue to work with Hampshire County Council to support with its Climate Change Strategy and upskill our staff to be able to offer broad sustainability advice
Improve our digital offering to allow more people to access advice on a range of topics online
Continue to work with Southampton City Council on improving its Southampton Healthy Homes offering and support its Green City Vision
Work with the other Local Authorities on their response to the Climate Emergency
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
Continue to successfully deliver Hitting the Cold Spots and look for additional funding to expand the reach and scope of project.
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.
Continue to explore opportunities to deliver work under the Flexible Eligibility element of ECO, and LAD 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 Hampshire Energy Efficiency partnership to investigate potential funding options for large scale regional energy efficiency and fuel poverty projects.
Continue to investigate opportunities to diversify away from exclusively delivering Fuel Poverty projects. Of particular interest are renewables, battery storage, Air Quality, Waste, Circular Economy and Water projects.
Continue to develop our marketing strategy, brand and logo and our website resources.
Continue to promote our data analysis and mapping services
Continue to improve the staff development, training and remuneration package
Continue to establish and maintain a strong network of contacts
Risk management
The following risks have been identified as relevant to the business:
The ongoing situation with COVID –19 and a multitude of risks associated with the pandemic including the physical and mental health and wellbeing of staff and vulnerable clients
Operational risk with the potential of multiple staff contracting the virus
Risks to and from our client group
tEC’s inability to carry out face to face or outreach work which represent a good number of our KPI’s
Limited funding opportunities with increased competition for dwindling resources
Economic downturn and recession
Lack of staff resource and difficulties in recruiting and training staff remotely to respond to a surge in demand for affordable warmth and sustainability services
Lack of funding from Local Authorities and continued changes to services and key members of staff
Economic downturn and recession
Continued Local Authority Cuts
Uncertainty about the direction of Government Policy concerning Energy Efficiency, Air Quality and Sustainability
Lack of access to ECO
Lack of diversity in current projects
Increased competition from other businesses/charities for decreasing funds
Mitigation Strategy:
A number of strategies have been initiated in order to mitigate identified risks:
We continue to operate strict COVID 19 precautions which includes a range of measures to protect our staff and clients from the risk of infection
We a continue to predominately work from home in accordance with Government and internal guidelines
We continue to implement a number of other austerity measures.
We have recruited a further two members of staff to cope with the increased demands of delivering our services particularly during COVID
We have submitted change requests to a number of our funders to allow us to deliver our projects in a different way, particularly on improving our digital offering and virtual support services
We will continue to work closely with Southampton City Council and other Hampshire Authorities to investigate opportunities of mutual benefit.
The SMT continues to carefully monitor staff workload and capacity and look to recruit quickly again if more projects come on line.
The Chief Executive will continue to network and develop new business links with relevant individuals and organisations.
Strong emphasis has been placed on securing additional funding to deliver existing projects going forward.
Emphasis has also been placed on partnership working with LA’s and other TSO’s to allow tEC access to alternative sources of funding.
The incoming resources for this accounting period amounted to £ 729,03 3 (20 20 - £ 502,289 ) of which the operating deficit on activities was £1,120 (20 20 - £ 45,730 ). 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 £2 8 1,720 (20 20 - £ 282,841 ) of which £98,506 (20 20 - 1 51,017 ) represented restricted funds and £30,000 (20 20 - £30,000) designated funds.
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.
The trustees r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Environment Centre (TEC) (the charity) for the year ended 31 March 2021.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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 a mounts in these financial statements are rounded to the nearest pound.
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.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements .
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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 net income/(expenditure) for the year.
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.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
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.
Other staff costs
Office expenses
Light and heat
Travel and subsistence
Advertising
Books, periodicals and project materials
Bank charges
Irrecoverable VAT
Third party grant distributions
Bad debts
Computer and website costs
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 £ 99,824 (20 20 - £ 105,094 ).
One member of key management personnel was furloughed for three weeks in May 2020 when there was a great deal of uncertainty about funding and the activities of the organisation going forward. Because he wasn't supporting the delivery of core services at that point the SMT and board agreed that in order to save money it would be sensible to place him on furlough for a short period whilst the overall picture became clearer.
2020
The specific purposes for which the funds are to be applied are as follows:
Hitting the Cold Spots (HHS2/RDF/WCC) - Ringfence funding for energy efficiency improvements, particularly boiler repairs and replacements, on behalf of Hampshire County Council.
Big Energy Saving Network (BESN) - Providing advice to vulnerable consumers on energy issues and training frontline workers to enable them to provide advice on energy issues to their clients.
Clean Air Network (CAN) - Co-facilitation of the Southampton Clean Air Network which brings together individuals and organisations committed to reducing air pollution in the city, so that they can support and share resources with each other, and encourage and inspire others to take action.
Resilient Community Fund (SSEN) - A 2 year project designed to reach out to multiple vulnerable and disadvantaged communities in Hampshire, who might not otherwise be able to access help and advice. tEC supports households in these communities with face-to-face energy advice at outreach events or through referrals from engaged services. By reaching out to these communities we aim to reduce their risk of fuel poverty and support them with staying warm and well in their homes.
Raising Standards for Tenants (RST) - To improve housing conditions for vulnerable residents living in the worst performing privately rented properties. We will do this by raising awareness of Minimum Energy Efficiency Standards (MEES) and housing health and safety rating system (HHSRS) amongst tenants and landlords, as well as increasing energy literacy and empowering tenants to act.
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.
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.
National Emergency Trust- Administered by Hampshire and Isle of Wight Community Foundation and designed to support Hampshire residents through the pandemic. Tec was awarded £8,710.84 to help low income households across Hampshire at risk from fuel poverty.
Public Health (PH) - £10,000 grant funding was provided by Public Health Southampton to support the Environment Centre (tEC)'s Raising Standards for Southampton Tenants project in reducing fuel poverty.
Switched on Portsmouth (SOP) - A two year project designed to reach out to vulnerable and disadvantaged communities in Portsmouth to reduce their risk of fuel poverty and support them to stay warm and well in their home. It will complement, and extend the reach of existing activities through a single point of contact for affordable warmth advice and support in the city.
COVID 19 - Crisis Fund Redress - The COVID-19 Crisis fund is an emergency fund to support households in vulnerable situations during the COVID-19 pandemic, to maintain adequate energy supplies for health and wellbeing and to avoid self-disconnection. The fund was established in recognition of the additional burden for COVID 19 outbreak is having on vulnerable households, who may struggle to pay their fuel bills due to loss of income or increased fuel use.
IT Grant - Southampton Voluntary Service secured £100k from Southampton City Clinical Commissioning Group to help the voluntary and charitable sector with essential IT upgrades to support and enhance the new models of working in response to the ongoing COVID 19 pandemic. tEC was awarded £9814.75 on the 4 th December 2020
COVID Winter Funds - Funding from the Department of Work and Pensions passed through to Portsmouth City Council. Portsmouth commissioned tEC to distribute Fuel Vouchers to Fuel Poor residents on pre-payment meters.
The designated fund represents amounts designated by the board in respect of a future office move and dilapidations, staff training and development, upgrade of the company vehicle and match funding.
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 and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the Charity in the event of liquidation.