The Federation of Burial and Cremation Authorities (FBCA) and The Cremation Society of Great Britain (CSGB) created a not-for-profit Company, limited by guarantee, to deliver a national burden-sharing scheme, acceptable to DEFRA. The primary objective was to facilitate the reduction of mercury emissions by at least 50 per cent, and thereafter to continue to encourage the downward trend.
The company, Crematoria Abatement of Mercury Emissions Organisation (CAMEO) Ltd, was incorporated on 22nd October 2012. The company was formed with a Board of Directors and Members representing the two sponsoring organisations.
The Directors appointed HSKS Greenhalgh, Chartered Accountants and Business Advisers, to provide financial advice and prepare the annual accounts.
CAMEO undertook a Pilot Trading Programme in 2013 which established that there would be sufficient mercury-abated cremations to meet the expected demand from non-abated Crematoria. The Pilot Programme also identified four primary areas of difficulty: returns took longer than expected; the accuracy of returns was sometimes poor; payments took longer than hoped for to recover and the financial administration was more complex than anticipated. These four areas of difficulty have unfortunately continued, however building on the experience of the Pilot Scheme and its years of trading, CAMEO has continued to deliver a successful trading scheme.
In 2022, 262 (2021: 254) crematoria out of a total of a possible 310 in the United Kingdom took part in the Scheme. The company received £643,555 (2021: £612,480) from cremation authorities contributing to the burden sharing scheme, of which £613,089.62 (2021: £584,640) was then distributed and is committed to future distribution to Crematoria with tradable mercury abated cremations for sale (TMACS). The directors expect these numbers and amounts to reduce steadily over time as more abatement plants are installed.
In this its ninth year of operation, CAMEO's trading has shown a small increase in the value of a Tradable Mercury Abated Cremation (TMAC). This is the result of the increased number of cremation authorities experiencing technical issues with the installed abatement equipment and as a result, more cremation authorities contributing to the burden sharing part of the scheme.
CAMEO is confident that it successfully delivered a fair and balanced programme and the Directors were pleased to issue certificates of compliance recognised by DEFRA, Local Authority Regulators and SEPA. The Board of Directors have commissioned the audit of the process of collating and calculating the trading of TMACs, in accordance with Section 7 of the scheme rules. The independent report of the audit will be published on the CAMEO website.
CAMEO supplies DEFRA with details of Crematoria who have traded within the CAMEO scheme and those who have chosen not to do so, or for which no information has been obtained.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
Basis for opinion
Conclusions relating to going concern
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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the Company's business and its control environment. We also enquired of management about their identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework in which the Company operates and identified key laws and regulations that:
- Had a direct effect on the determination of material amounts and disclosures in the financial statements, which included the Companies Act 2006, tax legislation and payroll legislation; and
- Did not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate.
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how / where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of accounting adjustments and journal entries, assessed whether accounting estimates were reasonable and accurate and reviewed the accounting records for any significant and unusual transactions.
In addition, our procedures to respond to the risks identified included:
- Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- Performing analytical procedures to identify any unusual or unexpected variances that may indicate risks of material misstatement due to fraud;
- Enquiring of management about any instances of non-compliance with laws and regulations and any instances of known or suspected fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the 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 company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
Crematoria Abatement of Mercury Emissions Organisation Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 3rd Floor, Butt Dyke House, 33 Park Row, Nottingham, NG1 6EE.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
In the application of the company’s accounting policies, the directors 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 average monthly number of persons (including directors) employed by the company during the year was:
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
During the year, £12,650 (2021: £19,030) was received from The London Cremation Company PLC, regarding receipts under Tmacs. Professor H J Grainger OBE, is Chair of the Cremation Society of Great Britain, which has a majority shareholding in The London Cremation Company PLC.
During the year, £4,012 (2021: £4,376) was paid to Redditch Borough Council, an organisation in which M P Birkinshaw is employed as Bereavement Services Manager, regarding payments under Tmacs.
The company is controlled by its members.