2022-12-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDING 2022

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 2022. 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	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	Business Banking, Barclays,
	Leicester, LE87 2BB
	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 full year)
		From	To
R D Bingham
J.D.C. Carr (co-opted)		7 November 2022
C.J. Foxton	Chairman		(Chair to Nov. 2022)
J.R.P. Hunt (co-opted)	Chairman	7 November 2022
P.G. Hutchinson
C.J. Lawson	Secretary to the Trustees		(to 20 May 2022*)
R. Marshall	Secretary to the Trustees	13 June 2022
P Mason			29 April 2022
R.A. Pearson
I L Storey (co-opted)		25 May 2022
R. Wheeler	Treasurer**
P Jameson	Minutes Secretary***	4 August 2022

ex-officio Company Secretary to 13 June 2022.

**The Treasurer is not a Trustee.

***The Minutes Secretary is not a Trustee.

Approved by order of the board of Trustees on 22[nd] March 2023 and signed on its behalf by:

CJ Foxton – 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 three years by Members at the Annual General Meeting.

Any potential new Trustee must be recommended by the Board, or, if not, notice of not less than forty-two days nor more than seventy-two days must be given to the Company of the intention to propose a person for appointment. Not less than fourteen nor more than thirty-five 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 the vacancy resulting from a Trustee retiring by rotation is not filled, then the retiring Trustee will, if willing, be deemed to have been re-appointed. If there are more nominations than there are vacancies, an election is held. Trustees are also directors for the purposes of company law.

There is an agreed procedure for the appointment of Trustees/Directors on the Charity’s website, which potential nominees are required to follow. All Trustees should participate in the on-line NCVO training programme for Trustees, as part of the formal training and induction programme.

Organisation

The Trustees manage the business of the Charity: there must be at least six Trustees and not more than nine. At the end of 2022 there were eight Trustees. The quorum is five.

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 was established for the restoration and preservation of steam locomotives and other railwayrelated material with links to the North East of England.

The Charitable Objectives are:

“Promoting and encouraging the restoration and preservation of railway locomotives, carriages, wagons and other artefacts of historical interest and buildings, connected therewith in particular, but without prejudice to the generality of the foregoing, those connected with the North East of England, 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.”

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. Some specialist work is outsourced.
iv. Fundraising through the activities of the Board’s Financial Strategy Committee, which also manages the Patron membership scheme.
v. Using a building (Deviation Shed), which is open to the public to view, situated at Grosmont on the North Yorkshire Moors Railway (NYMR), for the overhaul, maintenance, and storage of locomotives.
vi. Using a building, leased from Darlington Borough Council, located at Hopetown, Darlington, for the overhaul and maintenance of locomotives.
vii. Continuing to create and maintain an 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. 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. Some volunteer members are sponsored for Personal Track Safety (PTS) certification to support running our locomotives on the national network.

ACHIEVEMENTS AND PERFORMANCE

Summary of the Main Achievements of the Charity in 2022: Another Unusual Year

The year 2022 saw the impact of the Covid-19 pandemic recede and a more normal year ensued. Unfortunately, World events had a major impact on energy and material prices, but it is too early to see the financial impact on the Charity. A dry hot Summer restricted income from our two operational locomotives.

Working parties were held at Carnforth, Deviation Shed, and Hopetown Works. Deviation Shed and Hopetown were reopened to the public. The Board met predominantly using Skype video conferencing software. The AGM (as a ballot) and a livery ballot were conducted by post.

Maintenance and Overhaul

Winter maintenance was carried out on the Q6 and J27 in Deviation Shed at Grosmont. The overhaul of the K1 progressed at West Coast Railway Company’s base at Carnforth, with much dismantling and the refurbishment of some components. The J72’s overhaul at Hopetown Works continued. The boiler is slowly taking shape, with work completed on the foundation ring and new platework for the outer firebox in place. The new cylinder block was cast and moved to Middlesbrough for machining.

Operation

The Q6 and J27 both operated at the NYMR during the year. Broken stays discovered in the J27 firebox in the Summer prevented a planned hire with the Kent and East Sussex Railway, though a successful visit to the Great Central Railway took place in late September. The total mileage run by the Q6 was 5274 miles. The J27 logged 3369 miles in the year.

Volunteer Input

The hours worked by volunteers during 2021 were equivalent to the hours which would have been worked by eight full time persons.

Our volunteer efforts normally include Junior Volunteers (under 18s). Our JVs are all now over 18. Recruitment of further JVs has lapsed, because of the vacancy for a JV Coordinator.

Building Maintenance

At Grosmont, Deviation Shed saw PAT testing of electrical equipment. Tests of lifting gear, ladders and fixed wiring were carried out by the NYMR. The shed roof was repaired following storm damage at the end of 2021.

Various non-North Eastern Locomotive Preservation Group (NELPG) locomotives have been stored in Deviation Shed during the year.

A total of £812.60 has been donated to the Charity through the Grosmont collection box by members of the public.

Membership

Membership of the Group at the end of 2022 stood at 671 (including joint members).

Social Meetings

No meetings were held in 2022, because of Covid-19 and the retirement of the meeting organiser. We hope to find another volunteer to take on this role.

Communications

The Charity website holds information about our activities, supplemented by emails to working volunteers.

The Charity published and distributed six issues of NELPG News, the members bi-monthly magazine.

A members Open Meeting was held in April and a further meeting to discuss the future of the Charity was held in November.

A social media policy was produced and published on the Charity website in response to an email incident.

Reporting

There have been no matters to report to the Charity Commission in 2022.

FINANCIAL REVIEW

Year-End Financial Position:

At the end of the period under review, the Charity had total funds of £754,181 (2021 = £795,631), a decrease of £41,450. 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 policy is to maintain a reserve of £100,000. The Trustees have designated funds to a total value of £371,343 as a "Locomotive Maintenance Fund" to cover the on-going operation and maintenance of our locomotives, and a further £337,211 to a "Locomotive Overhaul Fund" designed to accumulate funds to support major overhauls of our locomotives.

Investment Policy:

The investment policy aims to obtain the best available rate of return on a range of accounts with banks and building societies, each investment being at the maximum covered by the Financial Services Compensation Scheme and over a fixed term of the order of 12 months. Some funds are held in two accounts which allow withdrawal in 1 day and 90 days, respectively. A more significant sum is invested in the COIF Charities Global Equity Income Fund for a better rate of return.

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 2022 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 the following major risks to which the Charity is exposed. These risks and the systems and procedures to mitigate and respond to them are:

i Safe maintenance, overhaul, and operation of the locomotives. The Charity has in place a risk assessment and a procedure for its review. 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 Charity, 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 Loss of volunteer resources, including sufficient Trustees, and the effect of changes in their age profile and physical ability. The Charity is developing a strategy for ensuring sufficient volunteer resources and skills for the longer term, contracting work out where necessary, but Trustee numbers remain a concern.
iv 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 maintenance of a reserve fund.
v Difficulties in sourcing affordable coal fuel by heritage railways. Reduced operations as a result and other increased costs could lead to cut backs in steam locomotive use and consequential reductions in our hire income. The Group is engaged with other heritage stakeholders in addressing these issues through its membership of the Heritage Railway Association.

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 to develop interest in and understanding of the history and development of railways, a mode of transport that 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

We hope that the Q6 and J27 will see service on the NYMR in 2023. There have been expressions of interest from other heritage railways in hiring both locomotives. The K1 overhaul will continue and we hope to see completion in mid-2023. The J72 overhaul will continue in 2023, with the boiler repair progressed and the completion and fitting of the new cylinder block.

The move from our workshop at Hopetown will progress and we hope to move to the 1861 Shed in the Darlington Rail Heritage Quarter by September. Some impact on the J72 overhaul is likely.

As a result of our concentration on navigating our way through the virus situation, the Trustees have been unable to progress several strategic issues which require more focus during 2023. Although beyond the scope of this report, some matters have been progressed and we now have a functioning Locomotive Committee and a Health & Safety group. Further work includes:

i Delivery of a long-term strategy for the overhaul, maintenance, and operation of our locomotives. ii Delivery of a long-term financial plan to support the strategy for the overhaul, maintenance, and operation of our locomotives.
iii Revision of the Charity’s governance documents, including a review of safety and the Locomotive Maintenance Policy.
iv 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.
v Development of a long-term strategy aimed at ensuring that successors are available when key persons leave their posts.
vi Continued development of IT related systems.
vii 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:

Colin John Foxton (Chairman of the Board of Trustees 2022)

Date: 22[nd] March 2023

Roy Marshall (Company Secretary and Secretary to the Board of Trustees)

Date: 22[nd] March 2023

REGisfERED COMPANI. NII%IBF.R= 02570979 {England and Wales) REGISTERF.D CHARITh NLNIBER: 1002017 REPORTOFTHETRDSTEESAND FINANCIAL STATE.MENtS FOR THE YEAR ENDED 3A DECEIBER 2022 FOR I%ORTH EAsfEILN LOCOI¥IOTtIT PRESERVATION GROUP lknbch¢steT5 Chartered Accountants Ftn¢haLe House Belrnoni Business Park Durhatn DHI ITW

FORTH EASTERN LOCOMOTIVE PRESERVATION GROLTP CONTENTS OFTHE FI%.4%CI.4L sTATEIENTs FOR THE I'EAR ENDED3I DECEMBER 2022 Pge Rert of the Trustees Independent Exminer's Report Sttement of Financil ActiTritie5 B21nte Sheet 4 to 5 Notes to the Fina£1*1 Statemettts 6 10 13 Det8iled Ststement of FiD8ncial Activities 14 to 15

NORTH EASTERN Loc010T[yE PRLSERVATION GROiiP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees who are also dire£ioTs of the clJ2tity for the pryses of the Companies Act 2(KhS, preseni their retx>rt with the financial ststements of ihe chariiy for the ended 31 December 2022. The tru5te£s have adopied the provisions of Accounting and Rewrting by Chariiies.. StateEnent of Recommended Praciice applicable to chaiities preparing their accounts ID accordance with the RetK)rting Standatd applicable in the UK and Republic of kel8J]d IFRS 102) (effective l January 2019). STRUCTURI GOTrIRNANCE AND mANAGET Governing documellt The chariiy is controlled by its governing documents. a Metnora]Mlum of Association and Article5 of AsCIatIOn. aE constiiuies a limited eolnpany. limited by guaraniee, as defined by the Companies Act 2(Kkn. REFERENCE AND AD1¥11Tr41STRATIVE DETAIIS Registered Cornp&Dy llumber 02570979 (England and Wales) Registered Charity nwnber IIK>2017 Registtred orrKe 67 The Mouni Yolk Yorkshite Y024 IAX Trustees C J Lawson {resigned 2015120221 P G Hutchinson R A Pearson R Marshall C Foxton R D Bingham P Mason Iresigned 291412022) D A Pe[llKk {ie5igned 201512022) L Storey {appoinied 251512022} J R P Hunt {ap]xkind 711112¢Y221 J D Carr {appointed 7111120221 Company Secretary R Mshall Independent Exarniner David Holloway FCA DChA Ribchesters Chartered Accountants FinLhale House BeInn[ Business Park Durham DHI ITW Approved by order of the t¥)ard of tnLStee5 on l March 2023 aThJ sigft QD its half by: C Foxton- Trustee Page I

INDEPENDEYT EL4illIER's REPORT TO THE TRUSTEES OF NORTH F.ASTERN LOCONIOTIVE PRESERVA TION GROUP lThlepeJent examiner's repbrt to the ¢rustee5 of Nortb l¢00tive Preservation Group {'the Company'l retK>rt to the charity trustee5 on my examination of the accounts of the Cojnpany for the ended 31 December 2022. Responsibilities and basis of report As the charity's truste£s of the Company (and also its directors for the puqK>5es of company lawl you are resE¥)nsible lor (he preparaiion of the accounts in accordance with the requiremenis of the Cornpanies Aci 2(XMS ('tbe 2(K)6 Acl'}. Having satisfied myself that the accounts of the Company are noi required 10 audiied under Part 16 of the 21X)6 Act a1 are eligible for independent examinaiion. I retK)rt in le5t of my examination of your chariiy's accounts as carried out ll[er section 145 of the Charities Aci 2011 {'the 2011 Aci.). In carrying out my examinaiion I have followed the DirectioE]s given by the Chatity CornJnission under section 145(51 (b) of the 2011 Act. dependent examiner's ststen*nt I have cotnpleted my exam110 I cOnfn matters have CO io my attention in conne£tion with the eAa]nination giving me cause io lIeve.. accounting Te£ords were not kepl in resrrtt of the Company as required by section 386 of the 2(X>6 Act,. or the accounts do not accord w'ith those records: or the accounts do noi cOPIY with the accounting require1nen of seciion 396 of the 2(M)6 Aci other than any requirement ihai the accounts give a true and lair view which is Th)1 a tnattei considered as part of an independeni examitiation; or the accounts have not been prepared in accordance with the rnethLNls and principles of the Statement of Recommended Practice for accouniing iewrttng by ChleS (applicablc io chariiies preparing their accounts in accordance with the FinarKial Rertill8 Standard applicable in the UK and Republic of treland (FRS 102)}. I have no coftcerns and have come actO&s no other rnaueTS in conllection the examination to which aneniion should be drawn in this rewn in order io enable a prow understhndtng of the accounts be reached. David Hollvway FCA DChA Ribchesters Chartered Accounianis Ftnchale HOse Belmottt Busitrss Park Durham DHI ITW l March 2023 Page 2

NORTH EASTERPI LOCOIIOTIN'E PRESERVATION GROUP STATEIIENT OF FIY.AYCIAL,ICtIllTIES FOR TIIE I'EAR ENDFD31 DF.CF.1BER 2022 2022 Tothl fitnds 2021 Total funds Unresthcied fullds Restricted funds Note5 INCOlE AND EaDOWhlEI%TS FROM Donalion5 and legacie5 111,050 26,691 137.741 84,424 Other irdding activities Investhieni income 74,377 5.097 74,377 5,097 80,551 Total 217 169391 EXPENDITURE ON Raising funds 11.591 8,302 Cbaritable ctiwities Promotion. restoralion and pre5tr¥ation 194,715 225 118 135 803 Total 236 709 144 105 Net gain(losses) on inve5tment5 21,9561 21.956 29.588 NET INCOMEI{EXPENDrfuRE) (37.7381 (3.712) (41.4501 54.874 RECONCILIATIOIY OF FUNDS Tot41 funds brought fonvard 773.475 22.156 795.631 740,757 TOTAL FUNDS CARRIED FORWARD 735,737 18,444 754 181 795,631 The notc5 form wtof these financial ststemenis Page 3

NORTH EAsfERP4 LOCOMOTIVE PRESERVATION GROUP BAL.4JCE SHEET 31 DECEMBER 2022 2022 Total funds 2021 Total funds Unrestrictcd fund5 Re5trirteil funds Note5 FIXED ASSETS Tangible etS 14.1 14,100 20.186 CURRENT ASSETS Debtors Inve5tsnents C&sh at bank 10 47.845 163,981 51i,695 47,845 163.981 534 139 185,937 575 495 18.444 727,521 18,444 745,965 777,548 CREDITORS Amounts falling due within one year 12 (5.884) {5.8841 (2.103) NET CURREPa ASSETS 721637 740,081 TOTAI. ASSETS LESS CURRENT LIABILITIES 7i5.737 18.444 754.181 795,631 NET ASSETS 735 737 18.444 754.181 795.631 FLTNDS Unrestricted fvt)¢ts Resiricted funds 13 735.737 18.444 773,475 TOTAL FUNDS 754,181 795,631 The charitable company is eniiiled w exemption from audii under Section 477 of the Companies Act 2006 for the year ended 31 December 2022. The members have not required the company to obtain an audit of its financial statements for the year ended 3 1 December 2022 in accordance with Section 476 of the Companies Aa 2(K>6. The trnstee$ acknowledg¢ their rewnsibilitses for la) ensuring that the charitable company keeps accounting record5 that Compty with Se¢tions 386 and 387 of the Companies Act 2006 and preparing fillancial statements which give a true and fair view of the State of affair5 of the charitable cotnpany as at the end of each financial year and of its surplus or deficit for each financial J'ear in accord8ce with the requirements of Sections 394 and 395 and which other¥4'ise comply with the requirements of the Companies Acl 2006 relating io f5nanCi stateJn¢nts, $0 far as applicable to th¢ ¢haritsble ¢ompany. Ib) The notes forni part of these financial stsiements Page 4 continued...

NORTH EAER LOCOIIOTIVE PRESERVATIOP* GROLP BALAYCE SHEET- folltittued JI DECE%IBER 2022 These financial statements have been prepared in a¢¢ordan¢¢ with th¢ pn)visions applieable to Charitable companies sllbjeci io the small companie5 regiEne. The financia] stat¢Thents w¢re approved by the Board of Trustees and auth0ri5ed for issue on l Mar¢h 2023 aThJ were Signed on its beha]f by.. C Foxton - Trustee R Mar5hall- Trustee The note5 form part of these finaDciaJ $ements Page 5

PIORTH EASTE LOCONIOTII'E PRESERI'ATION GROUP NOTF.S TO THE FINANCIAL STATEMEfTS FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES Basis of preparing the financial ststements The financial Statements of the clwiiable Company. which is a public benefjt entity. under FRS 102, have been prepared in accordance with the Chariiies SORP IFRS 102}'Accountittg and Reporting by Charities.. Statement of Recommended Prdctice applicable to ehatities preparing their accounts ill a¢¢ordan¢¢ with the Financial Reporting Standard applicable in the UK and Republic of [relat (FRS 1021 (effective l January 2019),, Financial Reporting Standard 102 The Financial Rew)tting Stsndard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The r]nan¢ial statements have been prepared under the hi5torica] c051 convention. Income All income 15 recognised in the Statement of Financial Activities once the charity has entitlement io the thnds, li is probable that the income will be received and the amount Can be measured reliably. Fknre fees are reColS£d in the Period which the hire 15 provided. acie5 For legacies. entitlement is tsken as the eatlier of the dale on which either: the charity is aware that probe has been granted the estsie has ten fioalised and notific70 has been made to the exe¢uiorfs) io the Trust a distriblltion will be made, or when a disttibution is re¢eived frotn ihe t5¢. Where legacies have been notified to the charity. or the Chity 15 aware of the 8fdaJting ofprobate. and the criteria for income recognition have not been met. then the legacy is t[eed as a coniingeni asset and disclosed where material. Should the charity be notified of a legaty subsequenl io the a¢couniing rtfe¥entt date but befoTt ihe date of approval of the accounts and evidence exists Mhich suggests tha¢ ihe executors of the estaie agreed the disiriblltion prior io the end of th¢ rep)rting period and rettipt of the l¢g¥y is deemed to be pn)bable then thai receipt will rttognised as income in th x¢ounting period. Grants Grants of a revcnue nature are credited to ineome in the to which they relate. Expenditure Liabilities are recognised as expenditure as scx)n as there is a legal or consth]¢tive obligation committinB th¢ chariry io thai expenditure, it is probable th a transfer of ewnomi¢ benefits will be TequiTed in settlemellt alld Ihe amount of ihe obligation Can be rneasured reliabl).. Expenditure is account for on all accrua15 basis and has been Classifi under htading5 that aggregate 811 c05t related to the category. Where cosis cannot be directly attributed to parli¢ular headings they have been allocated to activities on a b&sis consistent with the use of resources. Tangible fixed Assets Depre¢iation is pwvided * the following annual rates in order to IlTite Off each asset over its estimated useful life. Le&sehold property Improvements io propery Plan¢ &. equipmeni Heritage assets Vehirl¢s strright line over 10 yea straighi line over 10 yeaTS straight line tsver 10 years not provided straight line over 3 years Heritage &ssets have indefinite useful economi¢ lives and art therefore Dot depreciated. Tax&tion The ¢hartiy Is ¢xempt from ¢orporion lax otl Lts ¢IrIble activitles. Fund #c¢ounting Unre5tTlCted funds can be used in accordance w'ith the charitable objectives at ihe discretion of ihe trusiees. Restricted filnds can only be Used for p2rticular restri¢ted purposes within the objetts of the chari¢y. Resiriclions arise when specified by th¢ donor or when funds are t3J5¢d for parti¢ulat restTi¢td purpos¢s. Page 6 ¢oniinued...

NORTH EASTERN LOCOIIOTIN'E PRESERVATION GROLP NOTES TO TIIE FIVAliCI.4L STATEMENTS- continued FOR THE I'EAR EPDED3I DECENIBER 2022 ACCOUNTING POLICIES- tontittued Fund accounting Fwther explanation of the nawre and pul[5e of each fid is included in the notes to the financhai stateTnents. DONATIONS AND LEGACIES 2021 2022 Grant5 Royalties Legacies Patron donations 17,728 48.609 25,719 29,OIH) Sundry donations 134 235 OTHER TIL4DING AcrtvrriES 2022 2021 tx)comotive hire fees Sale of gry)ds 73.566 79,600 951 74,i77 80.551 INVEsfMENT INCOME 2022 2021 Bank interesi receivable 5,097 4.416 RAISING FLIYDS R#i$ltsg dollg1ion$ 4nd legcies 2022 2021 Stock for resale Member events Supw>rt costs 328 3,575 7.688 427 7.875 11.591 8,302 Pag¢ 7 ¢ontinued...

NORTH EAsfERN LOCOMOTIVE PRESERN'ATION GROLP NOTES TO THE FIArIC[AL sTATEIE5- tolltioued FOR THE I'EAR Ef¥DED31 DECEMBER21122 NET IP4COMFJ(EXPENDITURE) Net tn¢omellexpendilure) is sthted after charginglltteditiDg)= 2022 2021 Depreciation- owned &s5ets 6.086 7.579 TRUStEES' REMUliERATION AfD BEPEFrrs There were no Dvsiees. Mton or other benefits for the year ended 31 De¢¢mber 2022 Ir for the year ended 31 De¢ernr 2021. Trnstees, exptnvs There were th) tyustees. expenses paid for the year ended 31 tkcember 2022 Tb)r foi the year ended 31 tk¢eJnb¢r 2021. The charity made a]lowan¢es ioth]ling £3,344 during the year for expenses claimed by the tsustees whilst doing volunteer work for the spe¢ifi¢ charithble areas (2021=£1.470). COMPAILITIVES FOR THE STATEMEPry OF FINANCIAL AcfiiTTIES Unrestricted fi]nds Restricted funds Total funds INCOME AND EP+WWTrIEiYfs FROI¥I Donarions and legacies 40.729 43,695 84,424 Other trading activities Investhient ill¢OTne 80.551 4.416 80,551 4,416 Totsl 125.696 43,695 169.391 EXPEf44DITURE ON Raisin8 funds 8.302 8,302 ChAriiabl¢ •¢iiviiies Promoiion: resioTaiion and preservation 102.51) 3i.280 135.803 Total 110,825 144,105 Net 8ains on investments 29.588 NET INCOME 44.459 10.415 54,874 RECONCILIATION OF FUNDS Total funds brought fornrd 729.016 11.741 740,757 TOTAL FUNDS CARRIED FORWARD 773,475 22,156 795,63 1 Pa8e 8 continued...

NORTH EAsfEIiN LoCOIIOTIl PRESERTr ATION GROL.P TriOTES TO THE FIN.4YCI.41. 5rATF.lENTs- continued FOR THE I'E,IR ENDED31 DECEJIBER 2022 TANGIBLE FIXED ASSETS Improvernent5 Leasehold property Plant & equipment property COST At l January 2022 and 31 tkcember 2022 28,986 21.468 DEPRECIATION At l January 2022 Charge for year 30,5 3.399 28,986 20,723 745 At 31 Decctnber 2022 33.963 28,986 21.468 NET BOOK I'ALUE At 31 Decefflber 2022 At 31 December 2021 3.399 745 Heritage assets Vehicle5 Totsls cost Ai l January 2022 and 31 Dettmber 2022 14.1(K> 6.995 105 512 DEPRECIATION At l January 2022 Char8e for year 5,053 85,326 6.086 At 31 December 2022 6.995 91.412 NET BOOK VALUE At 31 Ikcember 2022 14.1 l4,100 At 31 December 2021 20.186 io. DEwfoRS: AMoLTIs FALLIPG DLE WITHIP of*E I'EAR 2022 2021 Gift aid VAT A¢¢Tued income and prepayments 24.100 11.900 11.845 10.477 5,639 47,845 16.116 Page 9 continued...

fORTH EASfERli LOCO.MOTIVE PRESERN'ATION GROLP NOTES TO THE FIN.4CIAL STATENIE.YTS- CODtinued FOR THE I'EAR EPIDED 31 DECEMBER2022 CURREP4T ASSET INVESTMEPITS 2Q22 2021 Investment management fimd 163 981 185.937 12. CREDITORS: AloU{[s FALLING DUE WTHIN ONE YEAR 2022 2021 VAT A¢¢rued expeThses 903 5,884 2.103 13. MOVEMENT IN FLIPDS Net MOemenT in funds Trdnsfers be¢¢ funds Ar 31.12.22 At 1.1.22 Unrestricted fund5 Genera] fijnd L(Komotive Overhaul Fund Locomotive Maintenance Fund 46.653 266.483 460,339 (33.8701 85.928 14,400 {15,2001 800 27,183 337.211 371.343 773.475 (37.738} 735.737 Restri¢ted funds J72 Re5toraiion Fund 22.156 (3.7121 18.M4 TOTAL FUNDS 795.631 41.4501 754.181 Net movement in funds. Includ in the above are &s follows: Incoming resources Gains and losses Movement in funds ¢xpended Unresiricted funds General fund Locomotive Overhaul Fund Locomotive Maintenance Fund 26.774 85.928 (38,688} 121,9561 (33,870) 85,928 167618} 190.524 {206.306) 121,956} (37,7381 Restricted funds J72 Resioraiion Fund 26,691 {iO.403) (3.712} TOTAL FUNDS 217215 236.709} 21,9561 41,450) Pagc 10 conlinued...

NORTH EAStERN LOCOIIOTII'E PRESERVATION GROI'P NOTES TO THE FtNANClAL STATEME5- ¢oniiDued FOR THE I'EAR ENDED 31 DECENIBER 2022 13. MOVEMENT IN FUNDS-¢ontillued CotnP8r8tives for movement ID funds Trdn5fers bettveen fvnds movement in fvn¢ts At 31.12.21 Unrestrirted Genera] fund Locotnotive Overhaul Fund IA)comotive Maintenance Fut 54,119 444,381 230.516 8.534 29,IlX> 6.825 {16,(KkO) {206,9981 222.998 46.653 266,483 460,339 729.016 44,459 773.475 Restricted fund5 J27 & Q6 Safery V8lv¢ Fund J72 Restoration Fwid 1.135 10.606 (1.1351 1.550 11.741 TOTAL FUNDS 740 757 795631 Comparative net movement in fimds, included in the above are as lollows.. IncomiTr8 resource5 Re50urce5 expend Gains and losses Movement in funds Ullrestrirted fund5 Generd fund Lo¢omoiive Overhaul Fund LIKomotivt Nfaintenance Fund 14J28 29,100 {35.i82) 29,588 8,534 29,100 125,696 (110,825} 29.588 44.459 Restrieted funds J27 & Q6 Safety Valve Fund J72 Restoration Fund {l.lJ5} 32.145) 43.695 43.695 33 2801 10.415 TOTAL FUNDS 169.391 144 1051 29.588 54,874 Pagcll ntinued...

NORTH EASTEIiN LOCOMOTIVE PRESERVATIO GROIP NOTES TO THE FINANCIAL StATE.%IENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2022 13. MOVEMEINT IN FUI%DS- tontinutd A current year 12 months and prior year 12 months combined t)sIll0n is as follows: Nei movemeni in Transfers betsveen funds At 31.12.22 Ai 1.1.21 Unre5tri£ted fund5 General fund Locomotive Overhaul Fund Locomotive MaintenaTrce Fund 54.119 444.381 230516 (25.336) 115,028 82.9711 11.600) (222,198) 223.798 27,183 337.211 371343 729.016 6.721 735.737 Restricted funds J27 & Q6 Safety Valve Fund J72 Restoraiion Fund 1,135 10.606 7.838 18.444 TOTAL FUNDS 740.757 13.424 754.181 A ¢UTrent year 12 months and prior year l2 rnonths combined Thet movement in funds. included in the above are &8 follows= Incoming resourc¢5 Resources expcndrd Gatns and ltssses Movement in funds Unrestrleted funds General fund Locomottve Overhaul Fund Locomotive fvlaintenance FurMI 41.102 115.028 160.0 174.070} 7.632 (25,336) l 15,028 82,971) 243.061} 316.220 (317.131) 7.632 6,721 Restricted fund5 J27 & Q6 Saf¢ty Va]ve Fund J72 Restoration Fund {1,135} 62,548) (1.135) 7,838 70 70.386 63,683 6.703 TOTAL FUNDS 386,606 380,814 7,632 13,424 The Irusiees have designated fvnds for the purSe of f]nancing cjclical overhau15 of the locomotivcs which the charity own. These costs will be substantial and the trnstees therefore feel it prudent to ring fence reserve5 to enable those assets to be protected for fvture generations to enjoj Page 12 continued...

NORTH EASTERN LOCOIIOTIIT PRESERVATtoN GROI'P NOTES TO THE FIY.4YCI.4L STATEMENTS- continued FOR THE I"E.4R ENDED 31 DECEIBER 2022 14. RELATED PARTY DISCLOSURES An amount of £1,34912021= £Nil) w&s paid to a Tn]stee in restttt of work done for the Charity which wa5 not in respe¢1 of their Tole as a Ttusiee. 15. ULTIMATE COYTROLLIF*G PARTY The charitable comparty is c¥Jntrolled by il's tnJsLees. Page 13

rORTH EASTERTr LOCO10T1.E PRESERifATION GROUP DETAILED sfATE.MEP4T OF FIN.&NCIAL AcfIi'iTIES FOR THE YEAR ENDED31 DECEMBER 2022 2022 2021 INCOME AND ENDOWMENTS Don8t10115 #nd legaties Subscriptions and donations GrlS Legacies Members events 67,898 17,728 48,609 3.506 84.324 100 137,741 84,424 Other trading activities Locomotive hire fees Sale of g(5 73.566 811 79.600 951 74.377 80,551 Investment income Bank interest receivable 5.097 Total incoming resources 217.215 169.391 EXPENDITURE Raising donations ADd legacie5 Stock for resale Member events 328 3.575 427 3,903 427 Chirit#ble Activities Insurance Locomoithve resto10 costs Workshop consumables Travel & subsistence Mainline costs Workshop maintenance Subscriptiot15 and donatlOnS Training and medicals Depreeiaiion ollth0[d property Depreciation of plant and equiprn¢nt Depre¢iation of Vehicles 18,217 179.610 2.735 9.048 17,200 82.313 5.890 1,967 4,795 593 3.758 3,396 1,851 3,447 425 3,399 745 1,942 222.749 134.095 Support C05t5 Marjagement Admini5traiion costs 8.857 8.383 GovernÉnce costs Independeni examiners fee 1,200 1,200 This pagc does not forrn part of the slatulory financial statewn¢nts Page 14

NORTH EASTEKY LOCOIIOTII'E PRESERVATIOiY GROLP DETAILED Sr.ITEJE¥ OF FI_NX%CI.4L ACTI1.lEs FOR THE I'EAR ENDED31 DECEIIBER2022 2022 2021 Total resources expended 236.709 144,105 et (expendItureyieorne before and Ios8es (19.4941 25.286 Realised recognistd gains And losses Gains on current asset investments 21.956 Net (expenditureyincome 41,4501 54.874 Thi5 pa8e doe5 not form part of the finan¢iai statements Page 15

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDING 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustee Selection Methods

Organisation

OBJECTIVES AND ACTIVITIES

Summary of the Purposes of the Charity:

The Charitable Objectives are:

Activities

ACHIEVEMENTS AND PERFORMANCE

Summary of the Main Achievements of the Charity in 2022: Another Unusual Year

Maintenance and Overhaul

Operation

Volunteer Input

Building Maintenance

Membership

Social Meetings

Communications

Reporting

Archive

FINANCIAL REVIEW

Year-End Financial Position:

Statement Regarding Policy for Holding Reserves:

Investment Policy:

Uncertainties about the Charity Continuing as a Going Concern

Principal Sources of Fundraising

Risk Management

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

PUBLIC BENEFIT STATEMENT

There are Two Elements to Public Benefit

Awareness of Public Benefit Guidance

PLANS FOR FUTURE PERIODS

INFORMATION ON FUNDRAISING PRACTICES

Small Company Provisions: