## **The Chesterfield Canal Trust Limited** ## **Annual Report and Financial Statements** ## **Year Ended 30 September 2020** |**Company Registration number**|
**03403203**| |---|---| |**Charity Registration number**|**1071376**| |**Vat Registration Number**|**345 0352 26**| ## **The Chesterfield Canal Trust Limited** ## **Annual Report and Financial Statements** ## **Year Ended 30 September 2020** |**Contents**|**Page**| |---|---| |Company Information|1| |Report of the Directors|2 - 9| |Independent Examiner’s Report|10| |Statement of Financial Activities|11| |Balance sheet|12| |Notes to the Financial Statements|13 - 24| **THE CHESTERFIELD CANAL TRUST LIMITED COMPANY INFORMATION** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **Reference and Administrative Information** Charity Name: The Chesterfield Canal Trust Ltd Charity Registration Number: 1071376 Company Registration Number: 3403203 Vat Registration Number: 345 0352 26 Registered Office: Hollingwood Hub 22 Works Road Hollingwood Chesterfield S43 2PF ## **Directors and Charity Trustees** Dr P G Hardy Chair Mr M P Edwards Vice Chair (Appointed as Vice Chair 11[th] May 2020) Mr R D Auton Secretary (Appointed as Trustee and Secretary 29[th] June 2020) Ms L C Watson Treasurer (Appointed as Treasurer 11[th] December 2019) Mrs K Auton Mrs R Girling Mr A James Mr D Kiddy Mr M I Potter Mr I P Rowbotham Mrs S J Stephens Mr S Wilson (Appointed 28[th] April 2020) Mr G Challands (Resigned 23[rd] March 2020) Mrs J E James (Resigned 29[th] June 2020) Mr R Stonebridge (Resigned 12[th] October 2020) ## **Independent Examiner** Nicola Adams ACA DChA BHP LLP, Chartered Accountants 57-59 Saltergate Chesterfield S40 1UL ## **Principal Bankers** Unity Trust plc Nine Brindley Place Birmingham B1 2H Page 1 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ The Directors present their report and financial statements for the year ended 30 September 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019. ## **CORONAVIRUS AND THE CHESTERFIELD CANAL TRUST** Like every other organisation the Trust has been affected by the ramifications of the Coronavirus pandemic. - Our trip boats ceased taking passengers in March and only resumed on a limited basis in August. - Our shop and information centre also stopped trading in March but resumed, with caution, in July. - Our work party ceased activity in March but resumed work safely in June. - We cancelled our Festival, planned for the end of June. - We cancelled our Walking Festival planned for mid-September. - Our Promotional Trailer was unable to attend the planned shows and events. - Our Development manager was able to work from home. - Regular, shorter, and more frequent meetings of the Trustees and sub-committees continued through the year using video conferencing facilities. - Our AGM, initially planned for March, was postponed until October. However, changing guidelines meant that the October meeting was also cancelled. The Annual Report and a video presentation are available on the Trust website and have been viewed over 200 times. This action was in accordance with the Governments ‘Coronavirus (COVID-19) guidance for the charity sector’ - A Discretionary Grant from Chesterfield Borough Council of £7,500 mitigated some of the lost income. Page 2 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** - **Governing Document** The organisation is a charitable company limited by guarantee, incorporated on 14[th] July 1997, and registered as a charity on 7[th] September 1998. The company was established under a Memorandum of Association which established the objectives and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount per member not exceeding £1. ## • **Directors and Trustees** The Directors of the Company are also charity Trustees for the purpose of charity law and are elected after the Annual General Meeting (AGM). Constitutionally one third of the Trustees stand down each year and shall be eligible for re-election at the next Annual General Meeting. The Trustees to retire shall be the longest in office since the last election. New Trustees may be nominated by the members and if there are more nominations than positions then an election by members present is held at the AGM. In 2020, Mrs. K Auton, Mrs. R Girling, Mr. D Kiddy and Mrs. S Stephens were due to retire by rotation and, being eligible, offered themselves for re-election. Mr. M I Potter was co-opted during the previous financial year, Ms. L Watson, Mr. S Wilson, and Mr. R D Auton were co-opted during the year and all offered themselves for election. However, because of the Coronavirus pandemic the Trusts AGM was not held this year and the re-election of the above Trustees has been postponed until 2021. Please see ‘Coronavirus and the Chesterfield Canal Trust’ on page 2. - **Directors Induction and Training** The Directors try to ensure that Directors appointed have the necessary skills to further the Trust’s objectives. The Directors are regularly informed of training and development opportunities which arise that could be of benefit to the Trust. The Directors are aware of the policies and procedures that cover the day to day work of the Trust. ## • **Organisational Structure** The Trust Board is responsible for the ultimate management and direction of the Trust. The Trust Board concentrates on strategic decision making. The Trust has 5 sub-committees led by a Chair who is also a Director. The sub-committees report to the Trust Board. The sub-committees are: Restoration, Boats, Publicity and Promotion, Hollingwood Hub & Retail and Membership Engagement. The sub-committees have some autonomy allowing decisions without reference to the Trust Board if decisions are in line with Trust objectives and do not exceed approved budget limits. The sub-committees meet regularly and report back to the main Trustee Meetings which are held every 4-6 weeks. Page 3 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)** - **Organisational Structure(continued)** The Trust has one employee (Development Manager) and around 200 volunteers. The Trust also has strong partnership links with many organisations, most notably with Derbyshire County Council, Chesterfield Borough Council, the Canal and River Trust and the Inland Waterways Association. We value and thank these organisations for their help and co-operation. As the restoration moves into other areas, we look forward to working more closely with North East Derbyshire District Council, Rotherham Metropolitan Borough Council, Bassetlaw District Council and Nottinghamshire County Council to achieve full restoration. These authorities are represented by the Chesterfield Canal Partnership. A review of the composition and remit of this partnership is currently being undertaken. Page 4 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **OBJECTIVES AND ACTIVITIES** **The Trusts objectives and principal activities are** : - To promote the restoration to good navigable order of as much as considered possible of The Chesterfield Canal and to maintain and improve the Waterway for the use and benefit of the public. - To promote the construction of the ‘Rother Link’. - To promote the fullest use of the Waterway for the benefit of the public. - To promote, and educate the public, in the history, use of and associated wildlife of the waterway. ## **Public Benefit** When planning activities for the year, the Directors have considered the Charity Commission guidance on public benefit. - Purchase of properties along the line of the proposed canal. - Along the whole length of the proposed canal restoration there are 2 properties (semi-detached to each other) that could impede the progress of the restoration. These properties were advertised for sale and the Trust has purchased them. This secures the length of the canal from residential housing. The properties have been refurbished and rented out thus providing the Trust with an income until such time that the restoration reaches that area. - Planning permission A large planning application has been made for the restoration of 1.6 miles of the Chesterfield Canal to Chesterfield Borough Council. This large application received a lot of support from local residents, councillors and MP’s. It has also required HS2 to enter into discussions with us around the crossing of the canal by their maintenance line, a discussion which had previously been progressing very slowly. - Staveley Basin and Hartington Harbour The Trust has completed outstanding works around Staveley Basin and has put puddle clay into a 230m length of canal after Staveley lock. This section will shortly be in permanent water. - Works compound During the year, the work party completed a large and secure compound with facilities to store the Trust’s equipment at the bottom of Bellhouse Lane next to the line of the canal. - Narrowboat The Trust purchased, from a local school, the narrowboat Madeline which enables us to carry more passengers, to promote and raise funds for the canal restoration. - Grants During the year we successfully received a grant offer from IWA. We are currently negotiating the terms and conditions of the award. Page 5 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **OBJECTIVES AND ACTIVITIES (continued)** ## **Volunteering** - The Chesterfield Canal Trust is dependent on its many volunteers to whom it is greatly indebted. Their enthusiasm, dedication and hard work make our organisation the envy of so many others. - Volunteer hours. Our 200 volunteers contributed over 24,263 hours towards the restoration of the canal and the Trust’s other activities this year. This is a remarkable achievement when considering the reduced activity caused by the Coronavirus outbreak. |These hours can be grouped as follow:|| |---|---| |Promoting, improving, and protecting the canal|11,187| |Restoring and maintaining the canal|8,836| |Member support and administration|4,240| ## **ACHIEVEMENTS AND PERFORMANCE** ## **Charitable Activities** - Development Manager We continue to employ a manager to plan present and future restoration of the canal. He works with local authorities, statutory agencies and experts and is assisted by several volunteers both at an office level and at expert level. We have at times paid for expert help to assist him. - The annual Waterways Award, organised by the Canal and River Trust, awarded the Trust’s historic narrowboat ‘Python’ a commendation for the work it undertakes in improving vegetation growth along the Chesterfield Canal. - The Trust recognises the hard work of our volunteers and provides, free of charge, First Aid Training to all the volunteers and for those on boats the ability to achieve the Royal Yachting Association or National Community Boat’s Association Helmsman’s Certificate. - The Trust continues to update and publish an annual visitor guide of which 20,000 copies were distributed free of charge during the year. It also publishes other books and leaflets to promote the restoration of the canal and the use of the waterway. - The Trust, through a number of its volunteers, offers talks to small and large groups or organisations about the Chesterfield Canal and the restoration we are doing. Thirteen talks were given this year to over 758 people Page 6 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **ACHIEVEMENTS AND PERFORMANCE (Continued)** ## **Fundraising** - The Trust’s four trip boats remain an extremely popular means of promoting the canal and over the year volunteers spent over 4,500 hours taking 3,762 members of the public, many of whom had never seen the canal before, onto the canal for celebrations, trips, and experiencing Santa on a boat. During the year we had our most successful ‘Santa’ season. The Coronavirus pandemic however did affect the income from these trips from March onwards. - The shop and information centre at Hollingwood, with its associated coffee shop, continues to contribute to the funds of the charity. - Gift, legacies and donations also continue to help us achieve our ambition of restoring the Chesterfield Canal and during this year we received an extremely generous large donation which has enabled us to keep to our plans for the year **.** ## **Membership** - During the year membership of the Trust increased from 1,911 to 2,012 (a 5% increase), thus providing a reliable source of income. **----- Start of picture text -----**
Membership
2500
2000
1500
1000
500
0
Year
Members
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Page 7 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **FINANCIAL REVIEW** - Income for the year has increased by £81,494 on 2019. Total income the year is £399,840 compared with £318,346 in 2019. Many income streams during 2019/2020 have suffered because of the consequence of lost trading activity during the Coronavirus pandemic. The loss of Income, however, has been offset by a net refund of VAT from HMRC of £62,031, Property rental income of £8,100, additional grant receipts of £4,250, additional membership income of £3,948 and increased Gift Aid recovery of £5,019. - Expenditure increased in the year from £158,618 to £172,276. The increased expenditure is mainly due to the activity of the Development Office as it increases spending activity on Canal Restoration (£35,000) offset by reduction in spending on materials; (£8,000), repairs and renewals; (£14,000). This is due to the cessation of work party activity during the national lockdown. The net movement in funds was £227,564 (2019: £160,178). - The Trust had funds carried forward at 30 September 2020 of £793,551 (2019: £565,987) of which £121,229 (2019: £143,730) are restricted funds and £672,322 (2019: £422,257) are unrestricted funds. ## **Reserves Policy** - At the Trust Board meeting in January 2020 the Trustees approved a Reserves Policy which calculated a low reserve value of £71,000 and a high reserve value of £500,000. Current free reserves held are £314,524. (2019 £342,460). The fall in free reserves is partially due to the property purchases made during the year which are offset by the additional receipt of donations. Reserve levels will be monitored to ensure they remain adequate to cover anticipated future requirements. The policy will be reviewed annually to ensure it is fit for purpose. ## **Investment Policy** - The Trust is building its cash reserves in line with the Reserves Policy. In view of this the Trustees have agreed to share cash reserves around financial institutions operating within the Financial Conduct Authority’s remit and to restrict investment levels to the financial limits in operation from time to time. Page 8 **THE CHESTERFIELD CANAL TRUST REPORT OF THE DIRECTORS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **FUTURE PLANS** - Our overall aim is to complete the restoration of The Chesterfield Canal by 2027 - the 250[th] anniversary of its opening. - We will continue to engage or employ expert help, to help our Development Manager succeed in grant applications. - We will continue with the 2-year project to restore the Renishaw section of canal (1km). - Doe Lea Valley – When we receive planning approval and an award from the Staveley Town’s Fund, we will be making detailed plans to start restoring this section of the canal (3km). - We will continue to develop plans to reopen the Historic Norwood Tunnel and this year will apply for funding for a number of small projects around the Tunnel and Kiveton Waters. - We will develop plans and apply for funding to extend the popular Hollingwood Hub coffee shop, information centre and shop. We hope to provide much needed office space as well as improving space for community use. ## **MAJOR RISKS** - **Coronavirus** At the time of writing this report it is uncertain how the pandemic will affect the Trust both in terms of income generation and the ability to work safely on the restoration. The budget set by the Trustees for the year has taken into account the uncertainties of this situation. - **HS2** Although progress has been made in discussions with HS2 staff, there remains uncertainty about the position of the route of the train line and its effects on the restoration of the canal. - **Brexit** It is unknown how this will affect the position of major funders and their ability to fund restoration and Heritage Schemes. - **Other Risks** ## **Risk** ## **Mitigation** Perceived negligence by the Trust or volunteers. Public liability insurance. Training of volunteers. Accidents to visitors, volunteers, and the public. Risk assessment for all major activities. Health and safety policy for all volunteers. Monthly review of any incidents/accidents. Failure of income streams. Careful financial management and maintenance of a reserve fund. ## **APPROVAL** Approved by the Board on Dec 18, 2020 and signed on their behalf by: Dr P G Hardy Chair Page 9 ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE CHESTERFIELD CANAL TRUST LIMITED** I report to the charity Trustees on my examination of the accounts of the charity for the year ended 30 September 2020 which are set out on pages 11 to 24. ## **Responsibilities and basis of report** As the charity 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 company’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** Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies. 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 that in any material respect: 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. ## Nicola Adams Nicola Adams (Dec 18, 2020 09:56 GMT) ## **Nicola Adams ACA DChA** BHP LLP, Chartered Accountants 57-59 Saltergate Chesterfield S40 1UL Date: Dec 18, 2020 Page 10 ## **THE CHESTERFIELD CANAL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**Income from**
Donations and legacies
Grants
Donations
Legacies
Membership fees
Gift Aid
Other trading activities
Advertising and sponsorship
Concerts / Events / Talks
Fundraising
Sales
Property rental
Investment income
Charitable activities
Trip Boat income
Hollingwood Hub
Walking Festival
Sundry income
**Total**
**Expenditure on:**
Charitable activities
Raising funds
**Total**
**Net income resources before transfers**

Transfers between funds
**Net movement in funds**

Total funds brought forward
at 1 October 2019
**Total funds carried forward**
**at 30 September 2020**|**Unrestricted**
Note
**Funds**
**£**
**8,250**
**166,900**
**48,781**
**20,802**
**11,498**
**250**
**920**
**585**
**11,046**
**8,100**
**2,045**

**21,177**
**7,670**
-
(3)**80,206**

**388,230**
(4)
**131,931**
(5)
**6,234**
**138,165**
**250,065**
(11)
**-**
**250,065**
**422,257**
**672,322**|**Restricted**
**Funds**
**£**
**-**
**10,926**
**-**
**-**
**684**
**-**
-
**-**
**-**
**-**
**-**
**-**
**-**
**-**
-
**11,610**

**33,572**
**539**
**34,111**
**(22,501)**
**-**
**(22,501)**
**143,730**
**121,229**|**Total**
**2020**

**£**
**8,250**
**177,826**
**48,781**
**20,802**
**12,182**
**250**
**920**
**585**
**11,046**
**8,100**
**2,045**
**21,177**
**7,670**
-
**80,206**
**399,840**
**165,503**
**6,773**
**172,276**
**227,564**
**-**
**227,564**
**565,987**
**793,551**|Total
2019

£
4,000
27,147
170,000
16,854
7,163
6,139
-
3,469
20,397
-
2,928
49,151
10,436
662
-
318,346
148,797
9,371
158,168
160,178
-
160,178
405,809
565,987| |---|---|---|---|---| There are no recognised gains and losses in the year other than the surplus for the year identified above as net income. All activities relate to continuing operations. Page 11 ## **THE CHESTERFIELD CANAL TRUST LIMITED** ## **BALANCE SHEET** _**AS AT 30 SEPTEMBER 2020**_ |**Note**
**Fixed assets**
Tangible assets
(6)
**Current assets**
Stock
Debtors
(7)
Cash at bank
Cash in hand
**Creditors: amounts falling due**
**within one year**
(8)
**Net current assets**
**Creditors: amounts falling due**(9)
**after one year**
**Net assets**(12)

**Charity funds**(11)
Unrestricted funds
Restricted funds|**£**

**4,817**
**23,005**
**327,883**
**1,632**
**357,337**
**23,908**

|**2020**
**£**
**500,122**
**333,429**
**40,000**
**793,551**
**672,322**
**121,229**
**793,551**|2019
£
183,760
8,723
7,015
381,785
2,077
399,600
17,373
382,227
565,987
422,257

143,730

565,987| |---|---|---|---| For the year ended 30 September 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. ## Directors’ responsibilities: - The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. - The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. The financial statements were approved by the Board on Dec 18, 2020 and signed on their behalf by ____________________ Lorraine Watson (Dec 18, 2020 09:52 GMT) ____________________ Dr P Hardy Ms L Watson Chair Treasurer **Company registration number: 0340320** Page 12 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1. Accounting policies** ## **(a) Charity Information** The Chesterfield Canal Trust Limited is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Hollingwood Hub, 22 Works Road, Hollingwood, Chesterfield, S43 2PF. ## **(b) Basis of preparation and going concern** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice The charity constitutes a public benefit entity as defined by FRS 102. The Trustees’ have considered the impact of COVID-19 on the charity’s income and operating cost base. They have prepared forecasts of income and expenditure and cash flow for the period to 31 December 2021 which shows that they have sufficient reserves and cash to be able to continue for the foreseeable future. The Trustees’ recognise the uncertainty around future income generation and the inherent risk regarding the sustainability of future plans, however the Trustees’ have concluded that the charity remains a going concern whilst such viable options are available to it. The Trustees’ therefore continue to adopt the going concern basis of preparation for these financial statements. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. ## **(c) Fund accounting** - Unrestricted funds are available for the use at the discretion of the trustees in furtherance of the general objectives of the charity. - Designated funds are unrestricted funds earmarked by the trustees for particular purposes - Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of appeal. Page 13 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1. Accounting policies – continued** ## **(d) Income** All income is included in the Statement of Financial Activities when the charity is entitled to the income, the receipt is probable, and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: - Income received by the way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. - Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts. - Investment income is included when receivable. - Income from charitable trading activity is accounted for when earned. - Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. - Income from life membership subscriptions are included in the year of receipt. ## **(e) Expenditure** Expenditure is recognised on an accrual basis as a liability is incurred. The Trust voluntarily registered for VAT in March 2020 therefore expenditure excludes all VAT which can be fully recovered, any unrecoverable VAT is reported as a part of the expenditure to which it relates: - Costs of raising funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. - Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. - Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent accountant’s fees and any costs linked to the strategic management of the charity. - All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly. Page 14 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1. Accounting policies - continued** ## **(f) Tangible fixed assets and depreciation** Fixed assets purchased with a value of less than £1,000 are written off in full in the year of purchase. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straightline basis over their expected useful economic lives as follows:- Trip Boats 5% Motor Vehicles 20% pre 30 September 2019; 25% thereafter Plant and Equipment 25% / 20% / 16.67% / 14% / 10% Computer Equipment 25% pre 30 September 2019; 33.3% thereafter Office Equipment 25% post 30 September 2019 Furniture 25% post 30 September 2019 Commercial Property 10% Residential Property 2% Residential Property Fixtures & Fittings 20% Where assets are under construction no depreciation is provided until completion. ## **(g) Stock** Stock is included at the lower of cost and net realisable value. ## **(h) Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. ## **(i) Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due. ## **(j) Cash at bank and in hand** Cash at the bank and in hand includes cash short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **(k) Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Page 15 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **1. Accounting policies – continued** ## **(l) Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instrument is initially recognised at transaction value and subsequently measured at their settlement value. ## **(m) Critical accounting estimates and areas of judgment** Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. ## **(n) Employee benefits** When employees have rendered services to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for the service. ## **(o) Pension costs** The charity contributes to a defined contribution pension scheme and the pension charge represents the amount payable to the scheme in respect of the year. ## **(p) Land and Building Revaluation** Land and buildings acquired for the purpose of canal restoration will be professionally revalued every 3 years. Page 16 **THE CHESTERFIELD CANAL TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**2.**
**Prior Year Statement of Financial Activities**
**Unrestricted**
Note
**Funds**
**£**
**Income from**
Donations and legacies
Grants
**4,000**
Donations
**16,417**
Legacies
**170,000**
Membership fees
**16,434**
Gift Aid
**7,105**
Other trading activities
Advertising and sponsorship
**4,839**
Fundraising
**2,574**
Sales
**19,791**
Investment income
**2,928**
Charitable activities
Trip Boat Income
**49,151**
Hollingwood Hub
**10,436**
Walking Festival
-

**Total**
**303,675**
**Expenditure on:**
Charitable activities
**103,764**
Raising funds
**9,371**
**Total**
**113,135**
**Net income resources before transfers**
**190,540**

Transfers between funds
**(399)**
**Net movement in funds**
**190,141**
Total funds brought forward
at 1 October 2018
**232,116**
**Total funds carried forward**
**at 30 September 2019**
**422,257**|**Restricted**
**Funds**
**£**
**-**
**10,730**
**-**
**420**
**58**
**1,300**
**895**
**606**
**-**
**-**
**-**
**662**
**14,671**
**45,033**
**-**
**45,033**
**(30,362)**

**399**
**(29,963)**
**173,693**
**143,730**|**Total**
**2019**

**£**

**4,000**
**27,147**
**170,000**
**16,854**
**7,163**
**6,139**
**3,469**
**20,397**
**2,928**
**49,151**
**10,436**
**662**
**318,346**
**148,797**
**9,371**
**158,168**
**160,178**
-

**160,178**
**405,809**
**565,987**
| |---|---|---| Page 17 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **3. Sundry income** In March 2020, the Trust voluntarily registered for VAT. The registration was backdated to 1 April 2016. During the year a net refund was received from HMRC for the period April 2016 to September 2019 amounting to £62,031. This is shown as a sundry income receipt. For the period October 2019 – 30 September 2020 income and expenditure is shown net of VAT. Other sundry income of £18,175 relates to income from Derbyshire County Council recovered through the Partnership Agreement (£15,506); Feed in Tariff rebate (£1,765) and Training income (£904). Page 18 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**4. Charitable activities**
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
Advertising and publicity
**100**
**-**
Alarm maintenance & monitoring
**730**
**-**
Bank and PayPal charges
**1,429**
**-**
Catering
**161**
**-**
Contracting services
**2,006**
**-**
Depreciation
**16,009**
**11,639**
Electricity, gas & water
**2,629**
**-**
Entertainments
**-**
**-**
Exhibition & displays
**-**
**-**
Fixtures and fittings
**41**
-
Fuel & oil
**520**
**3,470**
Governance
**890**
**-**
Health & safety
**727**
**-**
Insurance
**3,968**
**1,369**
Interest payable
**630**
**-**
Legal & professional fees
**1,142**
**-**
Licences
**1,091**
**-**
Loss on sale of assets**1,021**-
Materials**2,901** **1,052**
Miscellaneous expenses
**1,605 838**
Mooring fees
**3,974**
**-**
Postage
**4,191**
-
Publicity material and signage
**6,828**
**-**
Rent and rates
**4,436**
**445**
Refurbishment costs
-
**1,172**
Repairs and renewals
**1,761**
**1,609**
Santa expenses (trip boats)
**1,509**
**-**
Security services
-
**-**
Surveys / Inspections / Planning Fees**24,398**
**10,591**
Telephone
**537 **
-
Tools and equipment
**168**
**763**
Training
**1,636**
**624**
Travelling expenses
**419**
**-**
Trip boat concession
**-**
**-**
Trip boat booking admin contribution
**2,082**
-
Waste removal
**922**
**-**
Waterways Officer contribution
**4,000**
-
Wages/Salaries
(15)**36,237**
-
Website / Computer / Software
**1,233**
-
______
________
Total charitable activities
**131,931**
**33,572**
|**Total**
**2020**
**£**
**100**
**730**
**1,429**
**161**
**2,006**
**27,648**
**2,629**
**-**
**-**
**41**
**3,990**
**890**
**727**
**5,337**
**630**
**1,142**
**1,091**
**1,021**
**3,953**
**2,443**
**3,974**
**4,191**
**6,828**
**4,881**
**1,172**
**3,370**
**1,509**
**-**
**34,989**
**537**
**931**
**2,260**
**419**
**-**
**2,082**
**922**
**4,000**
**36,237**
**1,233**
________
**165,503**
|Total
2019
£
302
736
1,730
2,751
2,893
22,670
2,314
953
135
1,089
7,078
1,038
410
8,744
**-**
2,237
2,247
-
12,053
4,999
5,083
3,709
14,925
3,499
-
17,029
1,725
(162)
-
1,411
4,774
1,366
287
1,352
2,082
1,295
2,000
13,775
268
______
148,797
| |---|---|---| Page 19 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **5. Raising funds** |**Unrestricted Restricted**
**Funds**
**Funds**
**£**
**£**
Cost of sales
**6,234**
**539**
**6,234**
**539**|**Total**
**2020**
**£**
**6,773**
**6,773**|Total
2019
£
9,371
9,371| |---|---|---| ## **6. Tangible fixed assets** |
**Cost**
At 1 October 2019
Additions
Disposals

At 30 September 2020
**Depreciation**
At 1 October 2019
Charge for the year
Disposals
At 30 September 2020
**Net book value at**
**30 September 2020**
Net book value at
30 September 2019|
**Boats**
**£**
**188,626**
**5,450**
**-**
**194,076**

**55,676**
**9,605**
**-**
**65,281**

**128,795**
132,950|
**Dawn**
**Rose**
**£**
**17,003**
**-**
**-**
**17,003**

**17,003**
**-**
**-**
**17,003**

**-**
-|**Motor**
**Vehicles**
**£**
**10,840**
**7,205**
**(10,840)**
**7,205**
**7,853**
**450**
**(7,853)**
**450**
**6,755**
2,987|**Plant**
**and**
**Equipment**
**£**
**93,718**
**2,711**
**-**
**96,429**
**48,702**
**11,754**
**-**
**60,456**
**35,973**
45,016|**Property**
**£**
**4,811**
**331,631**
**-**
**336,442**
**2,004**
**5,839**
-
**7,843**
**328,599**
2,807|**Total**
**£**
**314,998**
**346,997**
**(10,840)**
**651,155**
**131,238**
**27,648**
**(7,853)**
**151,033**
**500,122**
183,760| |---|---|---|---|---|---|---| ## **Dawn Rose - New Build Wooden Working Boat:** This is included in fixed assets to reflect the capitalisation of the construction costs of the boat Page 20 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**7.**
**Debtors**
Trade debtors
Other debtors and prepayments

**8.**
**Creditors: amounts falling due within one year**
Trade creditors
Loan
Income deferred due to cancellation of events in 2020
Other creditors and accruals
**9.**
**Creditors: amounts falling due after one year**

Loan||**2020**
**£**
**76**
**22,929**
**23,005**
**2020**
**£**
**-**
**10,000**
**2,048**
**11,860**
**23,908**
**2020**
**£**
**40,000**|2019
£
347
6,668
7,015
2019
£
7,452
**-**
**-**
9,921
17,373
2019
£
-| |---|---|---|---| ||||| ||



||| ||||| ||

||| ## **10. Taxation** As a charity, The Chesterfield Canal Trust Limited is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. Page 21 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ |**11.**
**Funds**
Balance
**Current Year**
01.10.19
£
**Unrestricted**
General 422,257
**Restricted**
Hugh Henshall Trip Boat
40,240
Walking Festival
-
Friends of Dawn Rose
976
Python Historic Boat Refurbishment
18,203
John Varley Trip Boat 1stStage Payment 17,374
Work Party Equipment 28,146
Place in History Restoration Fund 2017 33,083
Last Cuckoo Project
3,532
Work Party Materials
789
2027 Appeal 1,387
Barnsley, Dearne & Dove Canal – Entrust -
143,730
**Total funds**
565,987
**Prior year**
Balance
01.10.18
£
**Unrestricted**
General
232,116
**Restricted**
Hugh Henshall Trip Boat
43,070
Walking Festival
-
Friends of Dawn Rose
1,450
Python Historic Boat Refurbishment
19,103
John Varley Trip Boat 1stStage Payment 18,417
Work Party Equipment 34,088
Place in History Restoration Fund 2017 53,231
Last Cuckoo Project
3,637
Work Party Materials
697
2027 Appeal
-
173,693
**Total funds**
405,809|

**Income Expenditure**
**£**
**£**
**388,230 (138,165)**
(**2,930)**
**49 -**
**-** **(538)**
**-** **(1,130)**
**-** **(1,043)**
**-**(**6,537)**
**275 (10,503)**
**-** **-**
**-**(**838)**
**9,205 (10,592)**
**2,081 -**
**11,610 34,111**

**399,840 172,276**



**Income Expenditure**
**£**
**£**
303,675
(113,135)
100
(2,930)
2,815
(2,723)
3,048
(3,921)
230
(1,130)
-
(1,043)
150
(6,092)
6,478
(26,626)
-
(105)
-
-
1,850
(463)
14,671
(45,033)

318,346 (158,168)
|**Transfer**
**between**
**funds**
**£**
**-**
**-**
**(49)**
**-**
**-**
**-**
**-**
**-**
**-**
**49**
**-**
**-**
**-**

**-**
**Transfer**
**between**
**funds**
**£**
(399)
-
(92)
399
-
-
-
-
-
92
-
399

-
|**Balance**
**30.09.20**
**£**
**672,322**
**37,310**
**-**
**438**
**17,073**
**16,331**
**21,609**
**22,855**
**3,532**
**-**
**-**
**2,081**
**121,229**
**793,551**
**Balance**
**30.09.19**
**£**
422,257
40,240
-
976
18,203
17,374
28,146
33,083
3,532
789
1,387
143,730
565,987
| |---|---|---|---| Page 22 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ The purpose of the restricted funds are as follows: |Hugh Henshall Trip Boat|A project to build an accessible trip boat supported by the Big Lottery| |---|---| ||Fund.| |Walking Festival|An annual event started in 2018 but cancelled in 2020 because of| ||Coronavirus.| |Friends of Dawn Rose|Refurbishment of wooden working boat of a type that used to carry| ||cargoes on the Chesterfield Canal.| |Python Historic Boat Refurbishment|Historic boat used to promote the Chesterfield Canal at various| ||local and national events and to assist with volunteer maintenance| ||work on the Chesterfield Canal.| |John Varley Trip Boat|Replacement of old trip boat with a new boat.| |Work Party Equipment|Purchase of equipment for use in restoring Chesterfield Canal.| |Place in History Restoration Fund 2017|Fund to support restoration of the Chesterfield Canal.| |Last Cuckoo Project|Archaeological dig at Bellhouse Basin on the Chesterfield Canal.| |Work Party Material|Fund to help with the purchase of materials for the Trust Volunteer| ||Work Party.| |2027 Appeal|Fund to complete the Canal’s Restoration.| |Barnsley, Dearne & Dove Canal–Entrust|Specified funds received by the Trust on the dissolution of a Canal| ||Trust the spending of which must be approved by Entrust.| A small transfer has been made between Walking Festival and Work Party Materials due to the late receipt of gift aid relief amounting to £49 relating to donations received in 2019. Page 23 **THE CHESTERFIELD CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ ## **12. Analysis of net assets between funds** |**Current year Unrestricted**
**Funds**
**£**
Tangible fixed assets
**407,798**
Current assets
**328,432**
Current liabilities
**(23,908)**
Long term liabilities**(40,000)**
**672,322**
**Prior year**
**Unrestricted**
**Funds**
**£**
Tangible fixed assets
79,797
Current assets
359,833
Current liabilities
(17,373)

422,257|**Restricted**
**Funds**

**£**
**92,324**
**28,905**

**-**
**-**
**121,229**
**Restricted**
**Funds**

**£**
103,963
39,767

-

143,730|**Total**
**£**
**500,122**
**357,337**
**(23,908)**
**(40,000)**
**793,551**
**Total**
**£**
183,760
399,600
(17,373)

565,987| |---|---|---| ## **13. Capital commitments** Capital commitments authorised but not contracted at 30 September 2020 totalled Nil (2019: £nil). ## **14. Transactions with trustees** No trustees received any remuneration or expenses in the year. During the year trustees donated £15,039 to the charity (2019: £928). During the year, the charity made purchases from Renditions Graphics Ltd totalling £5,415. Rendition Graphics Ltd is a company under the control of a trustee and a former trustee, Mr A James (current) & Mrs J E James (former). ## **15. Staff costs** |
Wages and salaries
Social security costs
Employer’s pension costs

|**2020**
**£**

**35,079**
**-**
**1,158**
______
**36,237**|2019
£
13,376
-
399
_____
13,775| |---|---|---| The average number of persons employed by the Trust during the year was 1 (2019: 1) No employee received remuneration amounting to more than £60,000 in either year. Page 24