## **4. TRUSTEES ANNUAL REPORT FOR THE YEAR ENDING 2020**
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 December 2020. 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 2015).
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Registered name of Charity North Eastern Locomotive Preservation Group Other name of Charity NELPG Charity Registration number 1002017 Company Registration number 02570979 Principal Office and Registered Office 67 The Mount, York, YO24 1AX VAT Registration number 602 1185 91 Bankers Barclays Bank, 3 Northumberland Square, North Shields, NE30 1QX Co-operative Bank, 29 High Street, Durham, DH1 3PL Independent Examiner David Holloway FCA DChA of Accounts Ribchesters, Chartered Accountants, Finchale House, Belmont Business Park, Durham, DH1 1TW
## **Trustees**
Name Office (if any) Dates (if not whole year) From To C.J. Lawson Chairman R. Marshall Secretary to the Trustees N. Bill W. Dobson C. Foxton N.F. Hall J.R.P. Hunt 9[th] October 2020 P.G. Hutchinson R.A. Pearson R. Wheeler Treasurer*
*The Treasurer is not currently a Trustee.
Approved by order of the board of Trustees on 18[th] March 2021 and signed on its behalf by:
C J Lawson – Trustee
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Charity is governed by a Memorandum of Association and Articles of Association both of which are dated 2[nd] January 1991.
The Charity is a Charitable Company Limited by Guarantee.
## **Trustee Selection Methods**
Directors, who are also Charity Trustees, are elected for 3 years by Members at the Annual General Meeting.
Any potential new Trustee must be recommended by the Committee, or, if not, notice of not less than 42 days nor more than 72 days must be given to the Company of the intention to propose a person for appointment. Not less than 14 nor more than 35 clear days before the date appointed for holding a General Meeting, notice must be given to Members of those whose approval for appointment as Trustees will be sought at that meeting. If no new nominations are received, the retiring Trustees will be recommended to the membership for re-election. If there are more nominations than there are vacancies, an election is held. Trustees are also directors for the purposes of company law.
Although there is no formal induction and training programme at present, the Charity Secretary sends potential new Trustees a copy of Charity Commission Guidance Notes CC3 and CC3A and discusses with them what the role entails. Any nominee is required to confirm that they have read and understood the Guidance Notes, and are not disqualified from being a Trustee. The Chairman, Secretary and Treasurer provide additional guidance during meetings as required.
## **Organisation**
The Trustees manage the business of the Charity: there must be no fewer than 6 Trustees and not more than 9. At the end of 2020 there were 8 Trustees.
Some Trustees are allocated responsibility for a particular part of the Charity’s activities. As well as the specifically elected roles, responsibilities of Trustees include Health and Safety and Publicity.
**Corporate Trustees: -** There are no Corporate Trustees.
**Custodian Trustees: -** There are no Custodian Trustees.
**Trustees holding title to property belonging to the Charity:** - There are no Trustees who hold the title of property belonging to the Charity.
**People with Significant Control:** - The Company knows or has reasonable cause to believe, that there is no registerable person or registerable relevant legal entity in relation to the Company.
## **OBJECTIVES AND ACTIVITIES**
## **Summary of the Purposes of the Charity:**
“The Company is established for the purpose of promoting and encouraging the restoration and preservation of railway locomotives, carriages, wagons and other artefacts of historical interest and buildings connected therewith and the preservation of books, drawings, records, documents, sound and visual recordings, cinematograph films and photographs relating to such artefacts and vehicles, their history and their development, with particular reference to the North East of England.”
## **The Charitable Objectives are:**
“Promoting and encouraging the preservation of railway locomotives, wagons and other artefacts of historical interest, including buildings connected with the North East of England, along with the preservation of books, drawings, records, documents, sound and visual recordings, films and photographs relating to such artefacts and vehicles, their history and development.”
## **Activities**
The Company achieves these objects, primarily, through the ownership, maintenance, operation and display of four steam locomotives (Class K1 62005, Q6 63395, J27 65894 and J72 69023) which, prior to withdrawal, were operated by British Railways and had worked in the North East of England.
## **The Main, Relevant Activities of the Charity are as follows:**
- i. Maintaining and overhauling the four locomotives to the relevant statutory standards in locations where, whenever possible, members of the public can observe what is going on and talk to those carrying out the work. This work requires the provision of materials, tools and equipment.
- ii. Arranging, whenever possible, for the locomotives to operate either on Heritage Railways, or the national network.
- iii. Carrying out as much repair, maintenance and overhaul work on the locomotives as possible by volunteers who are members of the Charity and members of the public. Some specialist work is outsourced.
- iv. Fundraising through the activities of the Board’s Financial Strategy Committee, which also manages its Patron membership scheme.
- v. Using a building (Deviation Shed), which is owned by the Group and is open to the public to view, situated at Grosmont on the North Yorkshire Moors Railway (NYMR), for the major overhaul, maintenance and storage of locomotives.
- vi. Using a building, leased from Darlington Borough Council, which is open to the public on the third Saturday of every month, located at Hopetown, Darlington, for the overhaul and maintenance of locomotives.
- vii. Continuing to create and maintain an important Archive which is developed through frequent appeals to the Group’s membership for additional material. The Archive is stored at the National Railway Museum at York, and at the NYMR archive at Pickering. It is currently being catalogued. In due course the archived material will be made available to members of the public.
- viii. Having an open membership so that everyone can apply for membership.
- ix. Having a website, much of which is accessible by the public.
- x. Providing training to those members who wish to help with the maintenance and overhaul of locomotives. A number of members are sponsored for Personal Track Safety (PTS) certification to support running our locomotives on the national network.
- xi. Holding a series of Social Meetings during the Winter with speakers on railway topics. These meetings are open to the public.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Summary of the Main Achievements of the Charity in 2020:**
## **An Unusual Year**
The year 2020 will be remembered for the onset of the Covid-19 pandemic. The NELPG’s activities were significantly affected by the virus and by the Government’s measures to limit the spread of the virus, like most other businesses. In late March, working parties were suspended at the time of the first lockdown, whilst the Board assessed the Government guidelines and what they meant for our activities. As the UK worked toward a gradual resumption of some businesses, a risk assessment was prepared and sets of control measures were devised for activities at Carnforth, Deviation Shed, Hopetown Works, Fort William Depot, on Jacobite Operations and use of
the Company van. By early July we were ready for a resumption of NYMR services, which would provide some unexpected mileage for the J27, and of Jacobite services, which allowed some equally unexpected income for the K1. Working parties were limited in size and volunteers were asked to stay away, unless specifically rostered.
Meetings were similarly affected. In the interests of good governance, the Board began meeting using Skype video conferencing software. Social meetings were cancelled, after the March meeting. Deviation Shed and Hopetown were closed to the public. The AGM, plus two separate SGM motions, were conducted by postal ballot. This wasn’t all bad news, because the number of votes cast in the ballots returned far exceeded the usual numbers at a face-to-face meeting, and provided a more democratic result. It is likely that the Board will continue to meet on most occasions using video conferencing, because of the logistical advantages.
## **Maintenance and Overhaul**
Winter maintenance was carried out on the Q6 and the J27 in Deviation Shed at Grosmont. Winter maintenance and repairs on the K1 took place at West Coast Railway Company’s base at Carnforth. The J72’s 10-year overhaul at Hopetown Works continued. The boiler repair contract was awarded after competitive tender. Similarly, the contract for the pattern making and casting of the new cylinder block has been awarded.
## **Operation**
Two of the four locomotives worked during the reduced operating season. The K1 worked the Jacobite between Fort William and Mallaig from mid-July to mid-September, before returning to Carnforth, where the tyres were turned and a throatplate repair was made. It logged 4,320 miles in the year.
The J27 re-entered traffic at the NYMR in August and was used principally on lighter “Rail Trail” shuttles between Grosmont and Goathland. The total mileage run by the locomotive was 992.
With the NYMR advising that it would have no need for the Q6 during any operations in 2020, the decision was taken to lift the boiler (originally planned for Winter 2020/21).
## **Volunteer Input**
The hours worked by volunteers during 2020 were equivalent to the hours which would have been worked by 2 full time persons (volunteer input was significantly reduced because of Covid-19 measures).
Our volunteer efforts include Junior Volunteers (under 16s). The JVs have been unable to attend working parties for the bulk of the year, although some workshop training was provided early in the year.
## **Building Maintenance**
At Grosmont, Deviation Shed saw continued maintenance of the fabric of the building, roller shutter door maintenance, and regular equipment checks (including the defibrillator and PAT testing of electrical equipment). Tests of lifting gear, ladders and fixed wiring were carried out by the NYMR.
A number of non-North Eastern Locomotive Preservation Group (NELPG) locomotives have been stored in the Shed at various times during the year.
Hopetown works was closed from late March for all but the most essential tasks related to the J72 overhaul. The Board has continued to engage with the joint initiative by Darlington Borough Council and Tees Valley Combined Authority, to create a Railway Heritage Quarter in the Hopetown area of Darlington in readiness for the Bicentenary of the Stockton and Darlington Railway in 2025. Plans are being considered for the conversion of part of the 1861 Engine Shed elsewhere on the site for our use. No commitment to move has been made as yet. The dialogue on these matters continues.
A total of £130.00 has been donated to the Charity through the Grosmont collection box and £300.00 at Hopetown by visiting members of the public, before closure.
## **Membership**
Membership of the Group at the end of 2020 stood at 625.
## **Social Meetings**
During the early part of 2020, three Social meetings were held at the Northgate Club in Darlington, with an average attendance of over 22 persons and speakers on a variety of railway topics. These meetings are attended by Board members to give updates on locomotives and on other developments. Later planned meetings were cancelled because of Covid-19.
## **Communications**
Regular reports on progress with locomotive maintenance carried out by working volunteers are published on the Charity website. The website has been enhanced with the provision of a PayPal facility for sales and donations. This has proved particularly successful in promoting the J72 Appeal, including graphics to reflect the take up of component sponsorship. With the cancellation of meetings and exhibitions, this facility has also been of great benefit to sales, which have been able to continue on line. A further new initiative this year has seen the introduction of an irregular e-newsletter, which has been well received by members. It provides an additional means of keeping in touch with members during these difficult times, and contains stories and anecdotes of general interest which are either not appropriate for NELPG News, or for which space is not available.
The Charity published and distributed 6 issues of NELPG News, the members magazine, which remains the journal of record.
No members Open Meeting has been possible this year.
## **Reporting**
The have been no matters to report to the Charity Commission in 2020. However, during operation of the J27 at the NYMR in December, the locomotive was in a low-speed collision with the MPD running shed door. No damage to the locomotive was sustained. This has been investigated by the Railway and a report submitted to the Office of Rail and Road. We have received a copy of the report, which found no fault with the locomotive.
## **Archive**
We continue to add material to our archive.
## **FINANCIAL REVIEW**
## **Year-End Financial Position:**
At the end of the period under review, the Charity had total funds of £740,757 (2019 = £692,533), an increase of £48,224. Full details will be found in the Accounts.
## **Statement Regarding Policy for Holding Reserves:**
The reserves policy is to provide for unforeseen expenditure, which can sometimes arise when key components of the locomotives require renewal earlier than expected. The Trustees have designated funds to a total value of
£230,516 as a "Locomotive Maintenance Fund" to cover the on-going operation and maintenance of our locomotives, and a further £444,381 to a "Locomotive Overhaul Fund" designed to accumulate funds to support major overhauls of our locomotives.
## **Details of Funds Materially in Deficit**
No funds are materially in deficit.
## **Uncertainties about the Charity Continuing as a Going Concern**
At this point in time there are no doubts about the Charity continuing as a going concern.
## **Principal Sources of Fundraising**
During 2020 the Charity’s Principal Sources of Fundraising were as follows **:**
- i Fees paid by those hiring locomotives;
- ii Donations and grants, particularly in favour of the J72 Appeal;
- iii Subscriptions, including the Patron Membership Scheme;
- iv Legacy giving;
- v Sales.
## **Risk Management**
The Trustees have identified a number of risks. The major risks to which the Charity is exposed and the systems and procedures to mitigate and respond to these risks are:
- i Safe maintenance, overhaul and operation of the locomotives. The Charity has in place a Risk Assessment and a procedure for its review, amendment and approval. In addition, an Operating Manual is in place for operations at Fort William, supported by appropriate reporting lines and structure, to ensure it is applied in day-to-day operation. There are preventive maintenance procedures and all new volunteers are briefed on safety. To further protect the Charitable Company, it has appropriate insurance.
- ii Difficult economic conditions. The Charity has in place financial procedures to identify at an early stage the onset of potential problems and to develop plans to respond appropriately.
- iii The continuing impact of the Covid-19 pandemic on our activities and income. Government guidelines and our own control measures will be kept under review.
- iv Loss of volunteer resources and the effect of changes in their age profile and physical ability. The Charity actively manages the wide base of volunteer skills and is developing a strategy for ensuring sufficient volunteer resources for the longer term, contracting work out where necessary.
- v High costs associated with maintaining and operating steam locomotives, and increasing costs because of the increasing age of our volunteers resulting in more work having to be carried out on a paid contract basis. A strategy is being developed to ensure that resources are in place as and when they are needed, including the establishment of a reserve fund.
- vi Difficulty in sourcing coal fuel, likely to be exacerbated by the latest DEFRA Clean Air Strategy proposals. The Group is engaged with other heritage stakeholders through the HRA.
## **FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS**
No funds are held as custodian trustee on behalf of others.
## **PUBLIC BENEFIT STATEMENT**
## **There are Two Elements to Public Benefit**
- i The “Public” element – which requires that the purpose of a charity must benefit the public in general or a sufficient section of the public and must not give rise to more than incidental personal development.
- ii The “Benefit” element – which requires that the purpose of a charity must be beneficial in a way that can be identified and is capable of being proved by evidence where necessary and not based on an individual’s personal views.
The Trustees of NELPG take the view that the preservation and operation of steam locomotives helps, considerably, to develop interest in and understanding of the history and development of railways, a mode of transport that arguably had its roots in the North East of England and which played such an important part in the development of the modern world. This is considered “beneficial” even though it is difficult to quantify or measure.
## **Awareness of Public Benefit Guidance**
The Trustees confirm their compliance with their duty to have due regard to the Charity Commission’s Public Benefit Guidance when exercising any powers or duties to which the guidance relates.
## **PLANS FOR FUTURE PERIODS**
Our plans will depend heavily on the ongoing virus situation. The Trustees continue to monitor the situation carefully, taking account of Government advice and input from a number of bodies, including the Charity Commission, to minimise the impact on our objectives.
We hope that the K1 will see some service on the NYMR early in 2021 and operate on the Jacobite service in Scotland over the summer, before commencing a 10-yearly overhaul. We also hope the J27 will work on the NYMR, and that the Q6 will re-enter traffic on the NYMR later in the year. The J72 overhaul will continue in 2021, with the boiler repair progressed and the production of the new cylinder block.
As a result of our concentration on navigating our way through the virus situation, the Trustees have been unable to progress a number of strategic issues which require more focus during 2021. This work includes:
- i Establishment of a Locomotive Sub Committee. ii Delivery of a long-term strategy for the overhaul, maintenance and operation of our locomotives.
- iii Delivery of a long-term financial plan to support the strategy for the overhaul, maintenance and operation of our locomotives.
- iv Revision of the Group’s governance documents, including a review of safety and the Locomotive Maintenance Policy.
- v Review of the way in which the organisation is managed, with a view to the Trustees spending less time on day to day matters and more on strategic issues.
vi Development of a long-term strategy aimed at ensuring that successors are available when key persons leave their posts.
vii Continued development of IT related systems. viii Continued efforts to improve communications within the Board, within the Group and between the Group and like-minded organisations.
## **INFORMATION ON FUNDRAISING PRACTICES**
Although the Charity is not auditable under the guidance issued by the Charity Commission, we are aware of the Fundraising Regulator and we continue to consider the implications for our operations.
## **Small Company Provisions:**
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
Signed, on behalf of the Company’s Directors / Charity’s Trustees:
Date: 18[th] March 2021
Christopher John Lawson (Chairman of the Board of Trustees)
Date: 18[th] March 2021
Roy Marshall (Company Secretary and Secretary to the Board of Trustees)
**REGISTERED COMPANY NUMBER: 02570979 (England and Wales) REGISTERED CHARITY NUMBER: 1002017**
## **REPORT OF THE TRUSTEES AND**
## **FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **FOR**
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
||**Page**|
|---|---|
|**Report of the Trustees**|1|
|**Independent Examiner's Report**|2|
|**Statement of Financial Activities**|3|
|**Balance Sheet**|4 to 5|
|**Notes to the Financial Statements**|6 to 13|
|**Detailed Statement of Financial Activities**|14 to 15|
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
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 December 2020. 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).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
02570979 (England and Wales)
## **Registered Charity number**
1002017
## **Registered office**
67 The Mount York Yorkshire YO24 1AX
## **Trustees**
J R P Hunt (resigned 9/10/2020) C J Lawson N F Hall P G Hutchinson R A Pearson R Marshall W Dobson C Foxton N Bill
## **Company Secretary**
R Marshall
## **Independent Examiner**
David Holloway FCA DChA Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
Approved by order of the board of trustees on 18 February 2021 and signed on its behalf by:
C J Lawson - Trustee
Page 1
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **Independent examiner's report to the trustees of North Eastern Locomotive Preservation Group ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts 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
4. the accounts 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 accounts to be reached.
David Holloway FCA DChA Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
18 February 2021
Page 2
## **NORTH EASTERN LOCOMOTIVE PRESERVATION**
## **GROUP**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
51,500
Other trading activities
3
80,093
Investment income
4
6,302
Other income
-
**Total**
137,895
**EXPENDITURE ON**
Raising funds
5
11,489
**Charitable activities**
Promotion, restoration and preservation
112,865
**Total**
124,354
Net gains on investments
24,442
**NET INCOME**
37,983
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
691,033
**TOTAL FUNDS CARRIED FORWARD**
729,016|Restricted
funds
£
15,982
1,155
-
-
17,137
-
6,896
6,896
-
10,241
1,500
11,741|2020
Total
funds
£
67,482
81,248
6,302
-
155,032
11,489
119,761
131,250
24,442
48,224
692,533
740,757|2019
Total
funds
£
258,104
186,876
6,016
150
451,146
12,661
156,266
168,927
1,906
284,125
408,408
692,533|
|---|---|---|---|
The notes form part of these financial statements
Page 3
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **BALANCE SHEET 31 DECEMBER 2020**
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
9
27,765
**CURRENT ASSETS**
Debtors
10
14,754
Investments
11
129,608
Cash at bank
568,742
713,104
**CREDITORS**
Amounts falling due within one year
12
(11,853)
**NET CURRENT ASSETS**
701,251
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
729,016
**NET ASSETS**
729,016
**FUNDS**
13
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
11,741
-
11,741
-
11,741
11,741
11,741|2020
Total
funds
£
27,765
14,754
141,349
568,742
724,845
(11,853)
712,992
740,757
740,757
729,016
11,741
740,757|2019
Total
funds
£
35,640
16,867
91,906
565,621
674,394
(17,501)
656,893
692,533
692,533
691,033
1,500
692,533|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 4
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **BALANCE SHEET - continued 31 DECEMBER 2020**
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 18 February 2021 and were signed on its behalf by:
C J Lawson – Trustee
R Marshall – Trustee
The notes form part of these financial statements
Page 5
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. 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.
## **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.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Leasehold property - straight line over 10 years Improvements to property - straight line over 10 years Plant & equipment - straight line over 10 years Heritage assets - not provided Vehicles - straight line over 3 years
## **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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Page 6
continued...
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. DONATIONS AND LEGACIES**
|Grants
Royalties
Legacy fund
Patron donations
Sundry donations|2020
£
11,000
-
250
28,345
27,887
67,482|2019
£
2,100
78
211,525
28,085
16,316
258,104|
|---|---|---|
Included in grants received is an amount of £1,000 from the Veronica Awdry Trust, this is restricted and is included in J72 Restoration Fund. Also included in grants received is an amount of £10,000 from Darlington Borough Council.
## **3. OTHER TRADING ACTIVITIES**
|Locomotive hire fees
Sales
Raffles
**INVESTMENT INCOME**
Bank interest receivable
**RAISING FUNDS**
**Raising donations and legacies**
Stock for resale
Member events
Support costs||2020
£
76,496
4,752
-
81,248
2020
£
6,302
2020
£
3,146
-
8,343
11,489|2019
£
185,068
1,208
600
186,876
2019
£
6,016
2019
£
483
3,292
8,886
12,661|
|---|---|---|---|
|||||
|||||
## **4.**
## **5. RAISING FUNDS**
## **Raising donations and legacies**
continued...
Page 7
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **6. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2020|2019|
|---|---|---|
||£|£|
|Depreciation - owned assets|7,875|5,932|
|Surplus on disposal of fixed assets|-|(150)|
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
The charity made allowances totalling £875 during the year for expenses claimed by the trustees whilst doing volunteer work for the specific charitable areas (2019:£1,350).
## **8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
256,604
Other trading activities
186,876
Investment income
6,016
Other income
150
**Total**
449,646
**EXPENDITURE ON**
Raising funds
12,661
**Charitable activities**
Promotion, restoration and preservation
156,266
**Total**
168,927
Net gains on investments
1,906
**NET INCOME**
282,625
**Transfers between funds**
297,772
**Net movement in funds**
580,397
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
110,636|Restricted
funds
£
1,500
-
-
-
1,500
-
-
-
-
1,500
(297,772)
(296,272)
297,772|Total
funds
£
258,104
186,876
6,016
150
451,146
12,661
156,266
168,927
1,906
284,125
-
284,125
408,408|
|---|---|---|
continued...
Page 8
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**8.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**||
|---|---|---|---|---|
|||Unrestricted|
Restricted|Total|
|||funds|funds|funds|
|||£|£|£|
||**TOTAL FUNDS CARRIED FORWARD**|691,033|1,500|692,533|
|**9.**|**TANGIBLE FIXED ASSETS**||||
||||Improvements||
|||Leasehold|to|Plant &|
|||property|property|equipment|
|||£|£|£|
||**COST**||||
||At 1 January 2020 and 31 December 2020|33,963|28,986|21,468|
||**DEPRECIATION**||||
||At 1 January 2020|23,772|28,986|16,725|
||Charge for year|3,396|-|2,147|
||At 31 December 2020|27,168|28,986|18,872|
||**NET BOOK VALUE**||||
||At 31 December 2020|6,795|-|2,596|
||At 31 December 2019|10,191|-|4,743|
|||Heritage|||
|||assets|Vehicles|Totals|
|||£|£|£|
||**COST**||||
||At 1 January 2020 and 31 December 2020|14,100|6,995|105,512|
||**DEPRECIATION**||||
||At 1 January 2020|-|389|69,872|
||Charge for year|-|2,332|7,875|
||At 31 December 2020|-|2,721|77,747|
||**NET BOOK VALUE**||||
||At 31 December 2020|14,100|4,274|27,765|
||At 31 December 2019|14,100|6,606|35,640|
continued...
Page 9
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**10.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Gift aid debtor
VAT
Accrued income
Prepayments
**11.**
**CURRENT ASSET INVESTMENTS**
Investment management fund
**12.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
VAT
Accrued expenses
**13.**
**MOVEMENT IN FUNDS**
Net
movement
At 1.1.20
in funds
£
£
**Unrestricted funds**
General fund
58,790
(9,195)
Locomotive Overhaul Fund
389,565
59,340
Locomotive Maintenance Fund
242,678
(12,162)
691,033
37,983
**Restricted funds**
J27 & Q6 Safety Valve Fund
1,500
(365)
J72 Restoration Fund
-
10,606
1,500
10,241
**TOTAL FUNDS**
692,533
48,224|||
|---|---|---|
||||
continued...
Page 10
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|Incoming
resources
£
11,369
34,898
91,628
137,895
-
17,137
17,137
155,032|Resources
expended
£
(20,564)
-
(103,790)
(124,354)
(365)
(6,531)
(6,896)
(131,250)|Gains and
Movement
losses
in funds
£
£
-
(9,195)
24,442
59,340
-
(12,162)
24,442
37,983
-
(365)
-
10,606
-
10,241
24,442
48,224|
|---|---|---|---|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
Legacy fund
Locomotive Maintenance Fund
J27 & Q6 Safety Valve Fund
**TOTAL FUNDS**|At 1.1.19
£
110,636
-
-
110,636
98,207
199,565
-
297,772
408,408|Net
movement
in funds
£
239,512
-
43,113
282,625
-
-
1,500
1,500
284,125|Transfers
between
funds
£
(291,358)
389,565
199,565
297,772
(98,207)
(199,565)
-
(297,772)
-|At
31.12.19
£
58,790
389,565
242,678
691,033
-
-
1,500
1,500
692,533|
|---|---|---|---|---|
continued...
Page 11
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
**TOTAL FUNDS**|Incoming
resources
£
258,172
191,474
449,646
1,500
451,146|Resources
expended
£
(20,566)
(148,361)
(168,927)
-
(168,927)|Gains and
Movement
losses
in funds
£
£
1,906
239,512
-
43,113
1,906
282,625
-
1,500
1,906
284,125|
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
Legacy fund
Locomotive Maintenance Fund
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|At 1.1.19
£
110,636
-
-
110,636
98,207
199,565
-
-
297,772
408,408|Net
movement
in funds
£
230,317
59,340
30,951
320,608
-
-
1,135
10,606
11,741
332,349|Transfers
between
funds
£
(286,834)
385,041
199,565
297,772
(98,207)
(199,565)
-
-
(297,772)
-|At
31.12.20
£
54,119
444,381
230,516
729,016
-
-
1,135
10,606
11,741
740,757|
|---|---|---|---|---|
continued...
Page 12
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|Incoming
resources
£
269,541
34,898
283,102
587,541
1,500
17,137
18,637
606,178|Resources
expended
£
(41,130)
-
(252,151)
(293,281)
(365)
(6,531)
(6,896)
(300,177)|Gains and
Movement
losses
in funds
£
£
1,906
230,317
24,442
59,340
-
30,951
26,348
320,608
-
1,135
-
10,606
-
11,741
26,348
332,349|
|---|---|---|---|
The trustees have designated funds for the purpose of financing cyclical overhauls of the locomotives which the charity own. These costs will be substantial and the trustees therefore feel it prudent to ring fence reserves to enable those assets to be protected for future generations to enjoy
## **14. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2020.
## **15. ULTIMATE CONTROLLING PARTY**
The charitable company is controlled by it's trustees.
Page 13
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Subscriptions and donations
Grants
Legacies
Royalties
Members events
**Other trading activities**
Locomotive hire fees
Sales
Raffles
**Investment income**
Bank interest receivable
**Other income**
Gain on sale of tangible fixed assets
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Stock for resale
Member events
**Charitable activities**
Insurance
Locomotive restoration costs
Workshop consumables
Travel & subsistence
Mainline costs
Workshop maintenance
Subscriptions and donations
Health and safety equipment
Training and medicals
Depreciation of leasehold property
Depreciation of plant and equipment
Depreciation of Vehicles|2020
£
56,232
11,000
250
-
-
67,482
76,496
4,752
-
81,248
6,302
-
155,032
3,146
-
3,146
16,274
42,256
2,695
6,025
37,540
4,397
-
264
1,235
3,396
2,147
2,332
118,561|2019
£
41,716
2,100
211,525
78
2,685
258,104
185,068
1,208
600
186,876
6,016
150
451,146
483
3,292
3,775
14,959
91,236
3,184
10,370
13,672
11,436
350
422
3,505
3,396
2,147
389
155,066|
|---|---|---|
This page does not form part of the statutory financial statements
Page 14
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Support costs**
**Management**
Administration costs
**Governance costs**
Accountancy and legal fees
Total resources expended
**Net income before gains and losses**
**Realised recognised gains and losses**
Gains on current asset investments
**Net income**|2020
£
8,343
1,200
131,250
23,782
24,442
48,224|2019
£
8,886
1,200
168,927
282,219
1,906
284,125|
|---|---|---|
This page does not form part of the statutory financial statements
Page 15
**REGISTERED COMPANY NUMBER: 02570979 (England and Wales) REGISTERED CHARITY NUMBER: 1002017**
## **REPORT OF THE TRUSTEES AND**
## **FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **FOR**
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
||**Page**|
|---|---|
|**Report of the Trustees**|1|
|**Independent Examiner's Report**|2|
|**Statement of Financial Activities**|3|
|**Balance Sheet**|4 to 5|
|**Notes to the Financial Statements**|6 to 13|
|**Detailed Statement of Financial Activities**|14 to 15|
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
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 December 2020. 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).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
02570979 (England and Wales)
## **Registered Charity number**
1002017
## **Registered office**
67 The Mount York Yorkshire YO24 1AX
## **Trustees**
J R P Hunt (resigned 9/10/2020) C J Lawson N F Hall P G Hutchinson R A Pearson R Marshall W Dobson C Foxton N Bill
## **Company Secretary**
R Marshall
## **Independent Examiner**
David Holloway FCA DChA Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
Approved by order of the board of trustees on 18 February 2021 and signed on its behalf by:
C J Lawson - Trustee
Page 1
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **Independent examiner's report to the trustees of North Eastern Locomotive Preservation Group ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts 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
4. the accounts 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 accounts to be reached.
David Holloway FCA DChA Ribchesters Chartered Accountants Finchale House Belmont Business Park Durham DH1 1TW
18 February 2021
Page 2
## **NORTH EASTERN LOCOMOTIVE PRESERVATION**
## **GROUP**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
51,500
Other trading activities
3
80,093
Investment income
4
6,302
Other income
-
**Total**
137,895
**EXPENDITURE ON**
Raising funds
5
11,489
**Charitable activities**
Promotion, restoration and preservation
112,865
**Total**
124,354
Net gains on investments
24,442
**NET INCOME**
37,983
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
691,033
**TOTAL FUNDS CARRIED FORWARD**
729,016|Restricted
funds
£
15,982
1,155
-
-
17,137
-
6,896
6,896
-
10,241
1,500
11,741|2020
Total
funds
£
67,482
81,248
6,302
-
155,032
11,489
119,761
131,250
24,442
48,224
692,533
740,757|2019
Total
funds
£
258,104
186,876
6,016
150
451,146
12,661
156,266
168,927
1,906
284,125
408,408
692,533|
|---|---|---|---|
The notes form part of these financial statements
Page 3
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **BALANCE SHEET 31 DECEMBER 2020**
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
9
27,765
**CURRENT ASSETS**
Debtors
10
14,754
Investments
11
129,608
Cash at bank
568,742
713,104
**CREDITORS**
Amounts falling due within one year
12
(11,853)
**NET CURRENT ASSETS**
701,251
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
729,016
**NET ASSETS**
729,016
**FUNDS**
13
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
11,741
-
11,741
-
11,741
11,741
11,741|2020
Total
funds
£
27,765
14,754
141,349
568,742
724,845
(11,853)
712,992
740,757
740,757
729,016
11,741
740,757|2019
Total
funds
£
35,640
16,867
91,906
565,621
674,394
(17,501)
656,893
692,533
692,533
691,033
1,500
692,533|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 4
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **BALANCE SHEET - continued 31 DECEMBER 2020**
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 18 February 2021 and were signed on its behalf by:
C J Lawson – Trustee
R Marshall – Trustee
The notes form part of these financial statements
Page 5
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. 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.
## **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.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Leasehold property - straight line over 10 years Improvements to property - straight line over 10 years Plant & equipment - straight line over 10 years Heritage assets - not provided Vehicles - straight line over 3 years
## **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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Page 6
continued...
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. DONATIONS AND LEGACIES**
|Grants
Royalties
Legacy fund
Patron donations
Sundry donations|2020
£
11,000
-
250
28,345
27,887
67,482|2019
£
2,100
78
211,525
28,085
16,316
258,104|
|---|---|---|
Included in grants received is an amount of £1,000 from the Veronica Awdry Trust, this is restricted and is included in J72 Restoration Fund. Also included in grants received is an amount of £10,000 from Darlington Borough Council.
## **3. OTHER TRADING ACTIVITIES**
|Locomotive hire fees
Sales
Raffles
**INVESTMENT INCOME**
Bank interest receivable
**RAISING FUNDS**
**Raising donations and legacies**
Stock for resale
Member events
Support costs||2020
£
76,496
4,752
-
81,248
2020
£
6,302
2020
£
3,146
-
8,343
11,489|2019
£
185,068
1,208
600
186,876
2019
£
6,016
2019
£
483
3,292
8,886
12,661|
|---|---|---|---|
|||||
|||||
## **4.**
## **5. RAISING FUNDS**
## **Raising donations and legacies**
continued...
Page 7
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **6. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||2020|2019|
|---|---|---|
||£|£|
|Depreciation - owned assets|7,875|5,932|
|Surplus on disposal of fixed assets|-|(150)|
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
The charity made allowances totalling £875 during the year for expenses claimed by the trustees whilst doing volunteer work for the specific charitable areas (2019:£1,350).
## **8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
256,604
Other trading activities
186,876
Investment income
6,016
Other income
150
**Total**
449,646
**EXPENDITURE ON**
Raising funds
12,661
**Charitable activities**
Promotion, restoration and preservation
156,266
**Total**
168,927
Net gains on investments
1,906
**NET INCOME**
282,625
**Transfers between funds**
297,772
**Net movement in funds**
580,397
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
110,636|Restricted
funds
£
1,500
-
-
-
1,500
-
-
-
-
1,500
(297,772)
(296,272)
297,772|Total
funds
£
258,104
186,876
6,016
150
451,146
12,661
156,266
168,927
1,906
284,125
-
284,125
408,408|
|---|---|---|
continued...
Page 8
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**8.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**||
|---|---|---|---|---|
|||Unrestricted|
Restricted|Total|
|||funds|funds|funds|
|||£|£|£|
||**TOTAL FUNDS CARRIED FORWARD**|691,033|1,500|692,533|
|**9.**|**TANGIBLE FIXED ASSETS**||||
||||Improvements||
|||Leasehold|to|Plant &|
|||property|property|equipment|
|||£|£|£|
||**COST**||||
||At 1 January 2020 and 31 December 2020|33,963|28,986|21,468|
||**DEPRECIATION**||||
||At 1 January 2020|23,772|28,986|16,725|
||Charge for year|3,396|-|2,147|
||At 31 December 2020|27,168|28,986|18,872|
||**NET BOOK VALUE**||||
||At 31 December 2020|6,795|-|2,596|
||At 31 December 2019|10,191|-|4,743|
|||Heritage|||
|||assets|Vehicles|Totals|
|||£|£|£|
||**COST**||||
||At 1 January 2020 and 31 December 2020|14,100|6,995|105,512|
||**DEPRECIATION**||||
||At 1 January 2020|-|389|69,872|
||Charge for year|-|2,332|7,875|
||At 31 December 2020|-|2,721|77,747|
||**NET BOOK VALUE**||||
||At 31 December 2020|14,100|4,274|27,765|
||At 31 December 2019|14,100|6,606|35,640|
continued...
Page 9
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
|**10.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Gift aid debtor
VAT
Accrued income
Prepayments
**11.**
**CURRENT ASSET INVESTMENTS**
Investment management fund
**12.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
VAT
Accrued expenses
**13.**
**MOVEMENT IN FUNDS**
Net
movement
At 1.1.20
in funds
£
£
**Unrestricted funds**
General fund
58,790
(9,195)
Locomotive Overhaul Fund
389,565
59,340
Locomotive Maintenance Fund
242,678
(12,162)
691,033
37,983
**Restricted funds**
J27 & Q6 Safety Valve Fund
1,500
(365)
J72 Restoration Fund
-
10,606
1,500
10,241
**TOTAL FUNDS**
692,533
48,224|||
|---|---|---|
||||
continued...
Page 10
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|Incoming
resources
£
11,369
34,898
91,628
137,895
-
17,137
17,137
155,032|Resources
expended
£
(20,564)
-
(103,790)
(124,354)
(365)
(6,531)
(6,896)
(131,250)|Gains and
Movement
losses
in funds
£
£
-
(9,195)
24,442
59,340
-
(12,162)
24,442
37,983
-
(365)
-
10,606
-
10,241
24,442
48,224|
|---|---|---|---|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
Legacy fund
Locomotive Maintenance Fund
J27 & Q6 Safety Valve Fund
**TOTAL FUNDS**|At 1.1.19
£
110,636
-
-
110,636
98,207
199,565
-
297,772
408,408|Net
movement
in funds
£
239,512
-
43,113
282,625
-
-
1,500
1,500
284,125|Transfers
between
funds
£
(291,358)
389,565
199,565
297,772
(98,207)
(199,565)
-
(297,772)
-|At
31.12.19
£
58,790
389,565
242,678
691,033
-
-
1,500
1,500
692,533|
|---|---|---|---|---|
continued...
Page 11
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
**TOTAL FUNDS**|Incoming
resources
£
258,172
191,474
449,646
1,500
451,146|Resources
expended
£
(20,566)
(148,361)
(168,927)
-
(168,927)|Gains and
Movement
losses
in funds
£
£
1,906
239,512
-
43,113
1,906
282,625
-
1,500
1,906
284,125|
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
Legacy fund
Locomotive Maintenance Fund
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|At 1.1.19
£
110,636
-
-
110,636
98,207
199,565
-
-
297,772
408,408|Net
movement
in funds
£
230,317
59,340
30,951
320,608
-
-
1,135
10,606
11,741
332,349|Transfers
between
funds
£
(286,834)
385,041
199,565
297,772
(98,207)
(199,565)
-
-
(297,772)
-|At
31.12.20
£
54,119
444,381
230,516
729,016
-
-
1,135
10,606
11,741
740,757|
|---|---|---|---|---|
continued...
Page 12
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020**
## **13. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Locomotive Overhaul Fund
Locomotive Maintenance Fund
**Restricted funds**
J27 & Q6 Safety Valve Fund
J72 Restoration Fund
**TOTAL FUNDS**|Incoming
resources
£
269,541
34,898
283,102
587,541
1,500
17,137
18,637
606,178|Resources
expended
£
(41,130)
-
(252,151)
(293,281)
(365)
(6,531)
(6,896)
(300,177)|Gains and
Movement
losses
in funds
£
£
1,906
230,317
24,442
59,340
-
30,951
26,348
320,608
-
1,135
-
10,606
-
11,741
26,348
332,349|
|---|---|---|---|
The trustees have designated funds for the purpose of financing cyclical overhauls of the locomotives which the charity own. These costs will be substantial and the trustees therefore feel it prudent to ring fence reserves to enable those assets to be protected for future generations to enjoy
## **14. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2020.
## **15. ULTIMATE CONTROLLING PARTY**
The charitable company is controlled by it's trustees.
Page 13
**NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Subscriptions and donations
Grants
Legacies
Royalties
Members events
**Other trading activities**
Locomotive hire fees
Sales
Raffles
**Investment income**
Bank interest receivable
**Other income**
Gain on sale of tangible fixed assets
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Stock for resale
Member events
**Charitable activities**
Insurance
Locomotive restoration costs
Workshop consumables
Travel & subsistence
Mainline costs
Workshop maintenance
Subscriptions and donations
Health and safety equipment
Training and medicals
Depreciation of leasehold property
Depreciation of plant and equipment
Depreciation of Vehicles|2020
£
56,232
11,000
250
-
-
67,482
76,496
4,752
-
81,248
6,302
-
155,032
3,146
-
3,146
16,274
42,256
2,695
6,025
37,540
4,397
-
264
1,235
3,396
2,147
2,332
118,561|2019
£
41,716
2,100
211,525
78
2,685
258,104
185,068
1,208
600
186,876
6,016
150
451,146
483
3,292
3,775
14,959
91,236
3,184
10,370
13,672
11,436
350
422
3,505
3,396
2,147
389
155,066|
|---|---|---|
This page does not form part of the statutory financial statements
Page 14
## **NORTH EASTERN LOCOMOTIVE PRESERVATION GROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Support costs**
**Management**
Administration costs
**Governance costs**
Accountancy and legal fees
Total resources expended
**Net income before gains and losses**
**Realised recognised gains and losses**
Gains on current asset investments
**Net income**|2020
£
8,343
1,200
131,250
23,782
24,442
48,224|2019
£
8,886
1,200
168,927
282,219
1,906
284,125|
|---|---|---|
This page does not form part of the statutory financial statements
Page 15