46
WWT Report and Financial Statements 2012/13
26. Movement in funds (group)
(continued)
Permanent endowment fund
The permanent endowment fund represents donations
made where the donor requested that the capital be
invested and the income earned on the capital used by
the charity. Income earned on this fund is transferred to
the General Fund.
Restricted funds
Restricted funds are funds for which the donor has
specifically restricted the purpose for which it can be
used. These funds are recorded individually by project
but, for ease, are broadly categorised in these accounts
by activity. The restricted capital fund represents the net
book value of those tangible fixed assets purchased from
restricted funds, including most of the land and buildings
owned by the charity.
Designated funds
Designated funds are unrestricted funds to which the
Council has assigned a specific purpose. The Council’s
reserves policy includes setting aside sufficient funds to
cover the charity’s unrestricted essential expenditure for
a period of up to 6 months. This is included within the
contingency reserve and this level is set according to the
Trustees’ assessment of risks affecting the organisation’s
need for funding to protect WWT in the event of a worst
case scenario.
The planned projects reserve relates to funds set aside for
significant approved investments due to be made in the
charity over the next few years as part of WWT’s strategic
plan. Many projects are complete; a few remaining
projects are now being funded by legacies, so the fund is
no longer needed.
The fixed asset reserve represents the net book value of
unrestricted fixed assets that cannot be easily disposed of
as these are not liquid resources immediately available to
the charity.
The deficit in the FRS 17 pension reserve represents the
defined benefit pension scheme liability as valued under
accounting standard FRS 17: Retirement Benefits.
General fund
The general fund represents those unrestricted funds that
are freely available. The Trustees plan to use some of the
general fund for strategic investment in the charity, due to
be spent over the next five years.
Transfers between funds
Within restricted funds, transfers have been made to
capital, representing funded capital projects that have
been completed, most notably the new entrance lake at
Arundel and the saline lagoon at Washington.
The transfer between the general fund and the fixed asset
designated fund is an annual adjustment to ensure this
reserve is equal to the net book value of unrestricted fixed
assets that cannot be easily disposed of.
The transfer into the contingency fund represents an
annual update to the designated funds set aside to cover
the charity’s unrestricted essential expenditure for a period
of up to 6 months.
The transfer between the general fund and planned
projects fund represents capital projects that have been
completed in the year and projects that are now being
funded by legacies.
The transfer into the FRS17 pension reserve comprises
the unrealised loss of £2,120k plus £34k of pension costs
as per the FRS17 valuation less £255k of contributions
made into the scheme during the period under the
existing funding agreement.
