Company registration Iiumber.. 02986417 Charity registration number.. 1042227 The Derby & Sandiacre Canal Trust Limited (A company limiied by guarantee) Annual Report alld Financial Statements for the Year Ended 31 March 2022 Cojnmunity Accounting Plus Units l & 2 North West 41 Talbot Street Nottin¥hatn NGI 5GL The Derby & Sandiacre Canal Trust Limited Contents Reference and Administrative Details Trustees, Report 2to6 Independent Examiner's Report Statement of Financial Activities 8t09 Balance Sheet Ioto I I Notes to the Financial Statements 12 to21 The Derby & Sandiacre Canal Trust Limited Referenee and Administrative Details Trustees Chris W J Madge. Chaim]an Michael Wingfield Derek Troughion Val Clare Paul N Horton-Turner Kevin Miller Christopher ReesFitzPatrick W David Savidge Mike Snaith Ma¥gie Throup MP 1042227 Charitv Registration Number Company Registration Number 02986417 Rtgisttred Office 62 Broadway, Duffield Belper Derbyshire DE564BU Independent Examiner Johii O'Brien, employee of Community Accoiinting Plus Units l & 2 North West 41 Talbot Street Nottiiighani NGI 5GL Page I The Derby & Sandiacre Canal Trust Limited Trustees, Report The trustees. who are directors for the purposes of company law, present the aiinual report together with the financial 5tatement5 of the charitable coinpany for the year ended 31 March 2022. Trustees and officers The trustees and officers serving during the year and sin¢e the year end were as follom's.. Trustees.. Chris W J Madge. Chaimian Michael Wingfield Derek Troughton Val Clare Paul N Horton-Turner tQevin Miller Christopher ReesFitzPatrick W David Savidge Mike Snaith Maggie Throup MP Advisorv Committee members Cllr P Watson. nominatcd h). South D¢rbyshire District Council Cllr C Poulter. iiominated by Derby City Council Cllr G Hickton, iiominated by Derbyshire County Couiicil Cllr T Scott, nomiiiated by Erewa5h BorougFh Couiicil Johii Baylis BEM. Iiominated by Inland Watenvay5 Association, deceased 7 July 2022 Cllr A Graves, iiominated by Derby City Coiiiicil, stepped dowi iii May 2021 Cllr P Ingalls, nominated by Derby City Council, appointed in May 2022. Structure* governance and management 'll/ure ofgoveriiin&y documenl The charity is a company limited by guarantee and registered charity. It is operated under the rnles of its memorandum and articles of association dated ill 111994 whicl) was Inost recently ainei)ded 01) 101412019. It has no share capital and the liability of each subscriber in the event ol'winding-up is limited to £1. Recruilmenl appoinlmenl ofiruslees In accordance with Article 16 of Ihe new Constitution, a third of all Directors retire at the Anniial General Meeting and being eligible, offer themselves for re-election. New Directors are invited to join the Tnjstees based on their knowledge and experience of the canal project and their appointinents are siibject to approval at the Annual General Meeting. In addition to the Directors, Advisory Committee Members are appoit]ted by the Four Local Authorities ot] all annual renewable basis being dra￿￿ froin Councillors aiidlor Sejiior mejnbers of staff, or by the membership of Restoration Partners. Page 2 The Derby & Sandiacre Canal Trust Limited Trustees, Report Major risks andmanagemenl ufihose risk5 Risk munagemenl Major risk5 to the Trust have been reviewed and 5ySteins and procedure5 with coinprehensive insurance piit into place to manage those risks. includingF rebFular revieTh' at Board meetings. Major chan&Tes are communicated to the Board at monthly meetings and to the Advisory Committee quarterly. A key risk is thai one section of the canal line owned by the Trust is in water and the Trust is aware of its land drainage respoiisibilities to prevent flooding of neighbours. The risk is managed by periodic inspection and clearanee of drainage channels and is the subject of works expected to be completed in 202) to eliminate the risk. Volunteers are at risk from the Covid 19 vinjs. The Trust has consulted widely and implemented best practice procedures to minimise risks on working party activities. This has of necessity affected the frequency, composition and size of parties over the last year. In view of the increasing complexity in operations and prospective diversity of income generated from a trip boat and rental of the restored cottage development the Trust has engaged expertise to advise on its structure and tax management. The recommendations to create a trading subsidiary have been completed. Finaneial rtvie The Statement of Financial Activities for the year is set out within the financial statements. A summary of the financial resiilis and the work of Ihe Charity is set out below.. Income to the Trust for 20?1-22 was £335.735. During the year the Trust also accepted loans from supporters to t]d the development costs of the Draycott Canal Cottages. Puliry rÉservt The Trust general reserves currently stand at £193,614, but much of this is represented by fixed assets. The Trust aims 10 mainiain a general reserve of cash of around £30,000. The reserves are set to ensure that we can meet possible liabilities when ihey fall due, maintain our equipment and also provide a funding buffer 10 allow the Trust to lake advantage of small unflireseen opportunities such as land purchase as the}. occur. Going concer After making appropriate enquiries, the trustees have a reasonable expectation thai the Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concem basis in preparing the financial statements. Page 3 The Derby & Sandiacre Canal Trust Limited Trustees, Report Objectives and aetivities Objects ond Thc objective of the Tnist is to restore the fornier Derby Canal waterway from the Erewash Canal at Sandiacre to the Trent and Mersey Canal at Swarkestone via central Derby, as close as possible to the original roiite. thereby. reconnecting Derby to the national canal iietwork. lil complcting this objective the Trust and its partners will seek to maximise the positive impact on the coinmunity's qualit), of life, primarily by encoura&TingF active use of the waterway by individuals and clubs and creating and maintainingF a water based environineiit that will siipport aiid eiicouragFe wildlife and the wider environment. This will a150 generate sustaii)able econoinic developinent, job creation through tourisTn and 5POrts. and educational. heritauFe and leisure benefits for the City of Derby, the Borough of Erewa5h, South Derbyshire District and the East Midlands region gFenerally. The Trust seeks to be the catalyst, iiot only for the canal restoration, but a150 the enhancement of the neighbouiing land corridor. in partnership with local authorities. landowners, community and volunteer groups, developers ai)d all neighbours and residents. Aehievements and Performance Over the last year Ihe Trust has recovered from the disruption caused by Covid 19, with working parties back to full strength, although the afterniath of this and other macroeconomic impacis have affected the costs of operation quite considerably. We Compleied the resiorationldevelopment of the Callal Cottages at Draycott in April 2022. All three cottages were let to local families on short term tenallcies at market rates and 8 tenant agreed 10 operate the cafe at that time. The café opened on 7th May ?022 and has already attracted a good reputation and coiitinues to grow its reputation and customer base. We are convinced that this will generate funds for restoration into the ￿ture. During the last year we have formally acqiiired the freehold, which together with development cost5 is shown as a land asset in the Trust's balance sheet. This asset has been fiiiided by loans from siipporters lincludiiig some trnstees) at a fixed interest rate of 3 1 until June 20?6. The Tn]st is already considering options for June 2026 to iefinaiice 5UPPOrter loans at that time. The restoratioii of the Goldeii Mile in DTrycott has iiot pro¥res5ed a5 planned diirin¥ the last year. NetH.ork Rail have accepted that tliey should pay for the destruction of part of the work5 ordered by them to niiti¥ate Stotin Christophe iii 2020, but we have yet to agree the amount. In addition, the delay in work5 and resultiiig inflation of costs seen throughout the iiidu5ts)' ha5 ¥enerated a 5i¥iiificaiit shortfall in fundiiig to complete the project. The Trusi is now looking at ways ts) crystalise ihe shortfall and raise the I'ui)ds necessary ts) complete the projeci over the coming twelve moiiths. The Trusi Iinally lauiiched its Riverboat service on the River Derweni in Derby city centre iii August 2022. The service cannot yet thke disabled passengers. as it operates from a temporary starting point under Causey Bridge. However. the City c.ouncil have allocated funds io estsblish a new pontooii close by w,hich will provide full accessibility. The current belief is that the pontoon will be ready for operaiion in spring 2023. The Trust would like to Ihank all volunteers who have been involved in establishing the service and Liffered Iheir time to operate Page 4 The Derby & Sandiacre Canal Trust Limited Trustees, Report The Trust is awaiting a final report froTn Atkiiis on a feasibility. study for the DeTby Arni, a lock in the LongbridgFe weir iii Derby citv and a small canal basiii opposite the Coiiiicil House. Funding for thi5 was provided by Derby City Council. FurtheTmore, the city's plans for p05t pandemic development have progressed very positively. The city now sees the river as central to future developments and are supportive of our vision. Plans are being progressed within the Our City., Our River flood defence progTrainme to accominodate boat traffic ai)d the associated commercial developments It brings. We have progressed at Sai)diacre with plans for the key sewer diversion. We have repossegsed a seetion of land froin a neighbour to allow the sewer to move and have undertaken detailed surveys of wildlife and soil Conditions. Whilgt we may have missed the opportui)ity to coinplete works ii) 2022 we have a coi)structive relationship with Sevem Trent Water and neighbours and have every confidence that significant progress is now imminent. We are also in discussilin with developers of the Garden Village developmeni at Lowes Lane, Sinfin Moor. We have underraken substantial working party effort to make safe and uncover the canal line beiween the A50 and Infinity Park Way. This provides evidence of the value of Ihe canal to the 5,000 house development in providing much needed drainage options as well as leisure enhancements. We are hopeful Ihai over the next few years we can get a kilometre of canal built down to the Trent and Mersey. The Trust is actively working with other local canal bodies and with the Inland Watenways Association nationally where it is represented on several national policy and resioraiion fora. The Trust would like to thank the growing arniy of volunteers who have attended working partie5, and in particular those people who have worked from home dealin£ with administration, fundraisins organising meetings, negotiating with suppliers, planners. council officer5, etc. etc. Without these people the Trust simply could not function effectively. Statement of Trustees, Responsibilities The tllJ5tee5 (who are also the directo￿ of The Derby & Sandiacre Canal TTUSt Limited for the putposes of coinpany law) are responsible for preparing the trusttes, report and the financial Statements in accordance with the United Kiiigdom Accountin¥ Standard5 (Utjited KingTdoin Geiierally Accepted Accounting Practice) and applicable law and regFulations. The report and accounts have been prepared in accordai)ce witli the provi5ion5 in the Companies Act 2006 relatitjg to small companies. Company law requires the trustees to prepare financial statements for each financial }'ear. Under company law the trustses must not approve the financial siatements unless they are satisfied that they give a true and fair view of the state of affairs of ihe chariiable company and of its incoming resources and application of resources. including its income and expenditure, for that period. In preparing these financial siatements. the trustees are reqiiired to.. select suitable accounting policies and apply them con5lStently,' observe the methods and principles in the Chariiies SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK A¢Lountin¥ St