Charfty numbfrr: 1088452 ROTHER VALLEY RAILWAY HERITAGE TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
ROTHER VALLEY RAILWAY HERITAGE TRUST CONTENTS Page Rèfer•nce and Admlnlstratlve Detalls of the Charlty, Its Trustees and Advlsers TrustO•8' Report Independènt AudltoV$ Report Consolldated 8tatom•nt of Flnancial Actlvltl•s Con•olldat•d Balanco Sheet 10 Charlty 3alanc• Shgfjt Notès to the Flnanclal Statements 12-25
ROTHER VALLEY RAILWAY HERITAGE TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustews Mr Gardner Crawley BSclEngl FICE Ichaimianl Mr David Felton FCA Mr Michael Hart 08E Mr Graham Peters Bsc DL Mr Richard Broyd OBE Mr David Keay CEng. FIMechE. FIET Mr David Slack FRICS, FIAgrM, MRAC. BEM Charity rnglst•r•d numbor 1088452 Prfn¢lpal offl Robertsbridge Junction StstSon. Station Road, Robertsbridge. East Sussex, TN32 5DG Independent audltor Crowe U.K. LLP. Riverside House, 40- 46 High Street, Maidstone, Kent. ME14 1JH Bankers CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hlll, Wesl Malllng. Kgnt, ME19 4JQ Page 1
ROTHER VALLEY RAILWAY HERITAGE TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their annual report tOg8lher with the audited financial statements of the group and the charity Rolher Valley Railway Heritage Trust {Ihè charity and the group) for the year ended 31 Decomber 2020. The Trustees confirm that the Annual report and financial slalemenls of the char6ty and the group comply wth the cuent ststutory requirements, the requirements of the charity and the group's goveming document and the provislons of tho Statement of Recommended Practice ISORP} "Accounting and Reporting by Charities" issued in 2015. ObJg¢tSv•8 and Actlvltles . POLICIES AND OBJECTIVES The objects of the charity are to preserve for the benefit of the public of Kent and East Sussex and of the natson the hislorfcal, archile¢lural and (nstrUCtIOnal heritage that may exist in and around Kent and East Sussex in buildings linduding any building as defined in section 336 of the Town and Country PlannSng Act 19901 or structures of particular beauty or h1s1oC81, 8rchtte¢tural or constru¢lional inler8St. Rother Valley Railway Limited a majority owned subsidiary of the charity continues lo act on the reconstruction of the Kent & East SLtssex Railway from Bodiam to Robertsbridge in East Sussex to preserve the heritage of the historic railway. The charfty makes grants lo achieve these objectives. In setting the$8 objgctives and planning for aclivilias, the Trustees have given due consideration to general guidance publishgd by the Charity Commission relating lo public benefit. induding the guidance 'Public benefit: running a charlty IPB21'. Achlevom•nts and porforman a. REVIEW OF ACTIVITIES In preparing a revlew of the adwties for the year, the TTUStees have rofgrred to tha guidance contsinod in the Charity Commission's general guidance on public benefit when reviewng the Ch8riVs aims and objectivgs and in plannlng fijture activities. During th8 year. the charity made grants of £543.0(K) in accordance with its objectives. These grants enabled the conlinualion of the restoration of the historic Irackbed befvJe8n Junction Road and Robertsbrfdge ststion. In addition further grants were made for the rebuilding of a vintage 1917 Manning Wardle Steam locomotive. Chanvgllon, and an initial grant was made towards the costs of dismanuing and recovering the lumlable at Hither Green MPD, donated lo the Trust for eventual reconstruction and reuse al Robertsbridge Junction Stslion. b. GOING CONCERN After making approprfale enquiries, the trustees have a reasonable expectation that the charity has adequalg resources to continue in operational existence for thg foreseèable ftjlure. For this reason they continue lo adopt the going concem basis in preparing the firiaTrcial ststements. Further details regarding the adoption of the going con¢em basis can be found in the Accounting Policies. PUBLIC BENEFIT The Trustees consider that the charitys objectives ale for Iha public benefit and that its activities, achievemgnts and perfomiance are consislont with ils objeGtives. To achieve Its objectives the charity.'_ makes donatsons for the acquisition, preservation and r8stor8tion of locomotives. rolling stock and other ¢tem$ Page 2
ROTHER VALLEY RAILWAY HERITAGE TRUST TRUSTEES. REPORT Icontlnugd) FOR THE YEAR ENDED 31 DECEMBER 2020 of historical, operational, educational and general intere$t,' maintsins, improves and develops the railway and the land, works and buildlngs relating thereto. encourages and promotes the interest, support and participation of young people in the railway. and maintains a public museum of objects of Interest in the history of the railway. d. FUNDRAISING REGULATION Rolher Valley Railway Heritage Trust complies with sector best practice. No complaints were received wsth garos to fundraising throughout the course of the year and no professional funérais&rs or commercial partners conducted fundraising as charity representatives. The board of trustees monitors and manages its lundraising regulation and comlanGe which are discussed al board meetings. Donations received come from a variety of donors, with th8 majority coming from main Supporters of thg charity- The Trustees rggard its relationship wth donors as highly important and it looks lo retsin the support of ils donors for many years to come. The Trustees are contlnuing lo look for further donors and will be implementlng new poliGi88 t¢ help aid the progression of the restoratlon project. Flnanclal revlow . RESERVES POLICY AND FUTURE DEVELOPMENTS Th6 Trustaes regulady rgview the reseTV•$ position of the charity and will only carry out projects rf the necessary reseNes are avallable. The totsl expenditure anticipated for the complete reconstruction of the railway is in excess of £6 million. To dale the charity has received approximately £4rn of funding and is continuing lo seek future funding lo enable Ihg complellon of the railway. The charitvs unrestricted reserves as at 31 Dfjcgmber 2020 wor8 £1,039,75312019 - £852,223). The Trusteè$ believe these to be the free reserves as invgstmenl in tangible fixed assets for the railway restoration are the objectives of the charfty. Since the balance she8t date, the COVID-19 pandemic has emerged and tts impact has been fell around thè wodd. As a result of tho UK lockdown throughout the Spring of 2020, work on the railway was interrupted and volunteers were unable to access the sile. Whilst this may have delayed some of the projects, the Trustees are confident that the work will continue as the situation improves. The COVID-19 pandemic also meant that the Public Inquiry into the TWAO app1legOn for the r8¢onsthJction of the Junction Road lo Robertsbridge section of the line which had b8en schaduled for May 2020 was postponed. The Inquiry eventually sat for 19 dayB behveen the 6 July and 3 September 2021. The Inspector will in due ours8 report lo the Secretary of Stale for TransFX)rt. The Trustees expect lo receive a decision from the latter by mid-2022. Structure* govemance and managèment a. CONSTITUTION The eharity is an unincorporated association registered wth th8 Charity Commission and constituted under a Tiust Doed dated 17 January 2001. Its objects and powers are set out therein. b. MEfHOD OF APPOINTMENT OR ELECTION OF TRUSTEES The management of th¢ charity and the group 1$ the responsibility of the Trustees who are elected and cwpted Page 3
ROTHER VALLEY RAILWAY HERITAGE TRUST TRUSTEES, REPORT (contlnuedl FOR THE YEAR ENDED 31 DECEMBER 2020 under the terms of the Tru* deeii. CHARITY GOVERNANCE CODE The Trust8e8 have taken noto of the new Charity Govemance Code. The Trustees have attendgd seminars in the year and are now Implenling policies to eomply with the Code. d. RISK MANAGEMENT The Trustees have given consideration to the major r(sks to which the Trust is exposed, and have considered the systems designed to millgale exposure to these rl$ks, in partleular regular Trustee's meetings with a careful review Of the Trust's funding and available resourcas to ensure sufficient monies are held to meet and manag8 tho Trust'8 costs and current and ongoing commitments. TRUSTEES. RESPONSIBILITIES STATEMENT The Trusteos are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards IUnit8d Kingdom Generally Accepted kcounling Practice). The law applicable to charities in England & Wales requires the Trusttses lo prepare financial ststements for each financial year which give a true and fair vlew of the state of affairs of the charity and the group and of the incoming resources and application of Yesources of the group for that period. In preparing those financial ststemenls. the Trustees are required lo.. select Suitsble accounting policies and then apply them consi$tenUy' observe the methods and principl&s in the Charities SORP., mak& judgments and accounting estSmales that are reasonable and prudent.. prepare the finanGial statements on the going con¢em basis unless it is Inappropriate to prosume that the group will continue In operation. The Trustees are responsible for keeping proper accounting records that are sufficlent lo show and explain the charity and the group's transactions and disclose with reasonable accuracy at any time the finanual position of the group and enable them lo ensure that the financial ststements comply wth the Gharilies Act 2011. thg Charity (Accounts and Reports} Regulations 2008 and Ihg provisions of the trust deed. They are also responsibl8 for safeguarding the assets of the charity and the gTOUP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was appro Trustseg, on 28. 10. ) i and signed on their behalf by.. Mr Davld F•lton F Pago 4
ROTHER VALLEY RAILWAY HERITAGE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROTHER VALLEY RAILWAY HERITAGE TRUST OPINION We have audited the financial statements of Rolher Valley Railway Heritage Trust Ilhe 'parenl charity) and Its subsidiaries Ilhe 'group'l for the year ended 31 December 2020 set out in the Consolidated Slalement of Flnancial Aclivits'es, Consolidat9d Balance Sheet and the company Balance Sheet. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, inciuding Finaneial Reporting Standard 102 'The Financial Reporting Standard applicable in th$ UK and Republic of Ireland, (United Kingdom Generally Aecepled Accounting Practicel- The financiAI statements have been prepared in accordance wth Accounting and Reporting by Charities preparing their accounts in accordance wth the Financial Reporting Standards applicable in the UK and Republic ol Ireland IFRS 102) in preterence lo the Accounting and Fieporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referrgd lo In the extant regulations bul has been withdrawn. This has been done in order for the accounts to provido a true and falr view in accordance with the Generally Acceptfjd Accounting Practice effectr've for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements- giv8 a true and lair eW of the state of the group's and of the parent charitys affairs as at 31 Decembor 2020 and of the group's incoming resour¢e$ and appIltiOn ot rgsources for the y9ar then ended: have been properly prepared in accordance with Unilod Kingdom Generally Accepted Accounting Practice,. and have be8n prepared in ?ordance wllh the requirements of the Char¢tie$ A 2011. BASIS FOR OPINION We conductèd our audit in accordance with Intemalional Standards on Audillng IUKI IISAS IUKII and applicable law. Our responsibilities under those $land8rds are further described in the Auditorfs responsibili11os for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financtal statements in the United Kingdom. including the Flnancial Reporting Council's Ethical Standard, and we have fulfilled our other ethlcal respon8ibililies in accordance with these requirements. We believe that the audit evidence we have obtsined is SLrfficient and appropriatg to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial ststemenls, we have conduded that the Trustees, use of the going eoncem basis of 8cwunting in the preparation of the financial statements 1$ approprfata. Ba$¢d on the work we have perfomied, we have not idgntrfiod any material uncertainties relating to 9vents or conditions that, indiv5dually or colledvely, may cast signlficant doubl on the Group's or the parent charttable companvs ability lo continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issua. Our retsponslbilltles and the re$pon5ibiliti8s of Ihe Trustees wlth respect to golng nCern are described in the relevant secllons of Ihls report. Page 5
ROTHER VALLEY RLwAy HERITAGE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROTHER VALLEY RAILWAY HERITAGE TRUST OTHER INFORMATION The other information comprises the infcsmiation included in the Annual Report olhgr than the financSal statements and our Auditorfs Report thereon. The Trustees are responsible for the other inforniation contained wilhln the Annual Report. Our opinion on the financial ststem8nts does not cover the other infomab'on and, except to the extent otherwise expliciuy stated in our report. we do not express any fomi of assurance conclusion Ihereon. Our responslbility is to ad the other information and. in doing so. consider whether the other infomialion is materially inconsistent with the financial statements or our knowledge obtainod in the course of the audit. or otheN4ise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this glves rise lo a material misstatement in the finanaal slalemenls themselves. If, based on the work we have performed, we condude that there is a malerfal misstatement of this other infomiation, wg are required to rgport that fact. W8 have nothing to report in this fegard. OPINION ON OTHER MArrERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion. bA$ed on the work undertaken in the course of the audit: the Infomation glven in the Trustees, Report for the financial yaar for which the financial slalèments are prepared is consistent with the financlal slalemenls. Ihe Trustees, Report has been prepared in acrdanCe with applicable legal requirements. MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We hava nothing to report in respect of the followlng matters where th8 Charities IAccounts and Reports) Regulations 2008 requires us lo r8POrt to you if. in our opinion.. the informatton given in the Trustees, Report is Inconsistent in any malerfal r8spe¢t with the finsnclal statements., or the parent charity has not kept sufficient accountlno records. or the par8nl charity finandal statements are not in agreement wlth the auntIng records and relums,. or we have not received all the information and explanations we rgquire for our audiL RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustoes, Responsibilities Statement. the Trustees (who are also th8 diroctors of the charityare responsible for the preparation of the financi81slal8m8nls and for being satisfied that they give true and fair view, 8nd for such internal control as tha Trustees determine is necessary lo enable the preparation of financi81 statements that are free from material misslalemenl. whether due lo fraud or error. In preparfng the financial statements, the Trustèes are responsible for assessing the group's and the parent charitys ability to continue as a going con¢ern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the group or the parent charity or to cease operation8. or have no realistic alternative but lo do so. Page 6
ROTHER VALLEY RAILWAY HERITAGE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROTHER VALLEY RAILWAY HERITAGE TRUST AUDITOR'S RE8PONSI8ILITIES FOR THE AUDIT OF THE FINATr4CIAL STATEMENTS Our objectives are to obtain reasonable assuran about whether the financial statements as a whole ar8 free from material misslalemenl, whether due lo Iraud or error, and lo issue an Audilorfs Report that includes our opinion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK} will always delect a material rnisslatement when il exists. Misslatemenls can arise from fraud or error and are considered material rf, individually or in the aggregate. Ihgy could reasonably be expected to influence the economlc decisions of users tsken on the basis of these flnan¢ial slatsmenls. Irregularities, including fraud. are Instances of nonrfompliance with laws and regulatsons. We design procedures in line with our responsibilities, outlined above. lo detect material misslatemenls in respect of irregularities, induding fraud. The extant lo which our procedures are capablg of detecting irregularities. including fraud is detalled below.. We obtained an understanding of the legal and regulatory framgworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the detemiination of material amounts and disclosures in the financial statgments. The laws and regulations we considered in this context were the SORP 2015. We id6ntifigd the greatest risk of material Impact on the financial slalements from irregularities, induding fraud. lo be the override of controls by managemgnt. Our audit pro¢edures to respond lo these risk$ included.. enquiry of management about the Group's policies, procedures and related controls gardIng compllance with18ws and regulations and rf there are any known instances of non-compliance,. examining 8UPPOrting document8 for all material balances, transactions and disclosures.. enquiry of management and review and inspection of relevant correspondence., evaluation of the selection and appllcation of accounting policiès related lo subjective measurements and complex Iransaclions., an81ytic81 pr¢xedures lo identify any unusual or unexpected relatlonships., lesling the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements.. and review of accounllng estimates for biasgs. Ovng lo the inherent limitations of an audit. there is an unavoidablo risk that we may not have detected some material misslalemenls in the financial stalemenls, even though we have property planned and performgd our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected lo dèlect non-compliance with all laws and regulation5. These inherent limitaonS are parttcularfy slgnfficanl in the case of misslalemenl resulting from fraud as this may involve Sophisticated schemes designed to avoid del8Ctton, including deliberate failure to record transactions, cdlusion or the provision of Intèntional misrepresèntstions. A further d•sGription of our responsSbilitles for thg audit of the financial stalemgnls is lo¢aled on the Financial Reporting Council's wgbsile at.. www.frc.org.ukJauditorsresponsibilities. This description forms part of our Auditorfs Report. USE OF OUR REPORT This report Is made solely lo the chariws tNste8s, as a body, in accordance with Part 4 of the Chariti88 IAccounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stste lo the charitys trustees those matters we a required to slate to them in an Audilorfs Report and for no other purpose. To the fullest exlenl permitted by law. we do not accopt or assume rèsponsibility to anyone other than thè charity and its trust888, as a body, lor our audit work. for this report, or for the opinions w8 have fornied. Page 7
ROTHER VALLEY IiAILWAY HERITAGE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROTHER VALLEY RAILWAY HERITAGE TRUST Crow• U.K. LLP lan Weèkes Riverside House 40- 46 High Street Maidstone Kent ME14 1JH Date: 28 October 2021 Crowe U.K. LLP Is aligiblg lo act as an auditor in lerms of section 1212 of the Companles Act 2006. Page 8
ROTHER VALLEY RAILWAY HERITAGE TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestrlctèd Restrlcttd fund$ funds 2020 2020 Total funds 2020 Tot81 funds 2019 Not• INCOME FROM: Donations and legacies Other Iradlng a¢livities Investmen18 590,432 7.351 249 156.623 747,055 7.351 249 23,650 7,459 918 TOTAL INCOME 598,032 1S6.623 754,655 32,027 EXPENDITURE ON: Charitable activities 57,288 116,889 174,177 109.284 TOTAL EXPENDITURE 57,288 116.889 174.177 109,284 NET MOVEMENT IN FUNDS 540,744 39,734 580,478 (T7,257) RECONCIUAnoN OF FUNDS: Total fvnds broughl forward Net income attributable to Parent Charity Total funds after nel income Nel income 8ttributable lo Non<ontrolling intergsl 3,730,912 28.470 3,759,382 3,836,639 3,730.912 28.470 3.759.382 3.759,348 34 TOTAL FUNDS CARRIED FORWARD 4,271,656 68,204 4.339,860 3,759,382 The notes on pages 12 to 25 form part of these financial statements. Pagg 9
ROTHER VALLEY RAILWAY HERITAGE TRUST CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Nots FIXED ASSETS Tangible assets Investments 12 13 3.718.451 2,01)0 3.330, 176 2,000 3,720,451 3,332. 178 CURRENT ASSETS Debtors Cash al bank and in hand 14 34,198 639,520 22,282 426, 741 673.718 449,023 CREDITORS.. amounts falling due wlthln one year 15 154.3091 f21,817J NET CURRENT ASSETS 619,409 427,206 NET ASSETS 4.339,860 3, 759,382 CHARITY FUNDS Restricted funds un$triCted funds 18 18 68.204 4.271,518 28,470 3, 730, 771 TOTAL FUNDS NON<ONTROLLING INTERESTS 4,339,722 138 3. r59.241 141 17 4.339,860 3, 759.382 The financial ststèments were approved by th& Trustees and aulhorfseil for issue on 2 8. ID. 21 and signed on their behalf, Mr Davld Folton FCA The notes on pages 12 10 form part of these flnancial slatgmenl8. Page 10
ROTHER VALLEY RALWAY HERITAGE TRUST CHARITY BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Note FIXED ASSETS Tangible assets Investment$ 72 13 441,774 37.749 441,774 37, T49 479,523 479,523 CURRENT ASSETS Debtors Cash at bank 14 35 406.415 633,753 633,753 406,450 CREDITORS: amounts falling due wilhln one year 15 15.319) (5.280) NET CURRENT ASSETS 628,434 401, 170 NET ASSETS 1,107,957 880.693 CHARITY FUNDS Restricted funds Unrestricted funds 18 18 68,204 1,039,753 28,470 852.223 TOTAL FUNDS 1.107,957 880,693 The notes on pages 12 10 25 fofm part of these financial statsments. The financlal statements were approved by the Trustees and authorfsed for Issue on 2S. lo. 1)21 and signed on their behalf, by.. Mr Davld F•lton FCA The nots$ on pages 12 to 25 part of these financial statements. Page 11
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES 1.1 Bas18 of preparatlon of flnanclal ststements The finanual $ts18ments havè been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charities: Ststement of Recommended Practice applicable lo charities preparing their accounts in accordance with thè Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102 Section 1A small enlities)18ffective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Chari118s Act 2011. Rolhar Va118y Rallway Herilagg Trust constilules a public benefit entity as defined by FRS 102. Assets 8nd liabilities are initially recognised al historical cost or transacuon value unless otherwise stated in the relevant accounting policy. The Statement of Financial AtIeS (SOFA) and Balance Sheet consolidat8 the financial ststements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. No separat& SOFA has been presented for the charity alone as pemiitted by Charities SORP IFRS 1021. Tha net income and expenditure account for th6 year dealt with in the accounts of the charfty was a surplus of £227,18312019- £349,638 Deficit). After making appropmate enquirles. the trLtst8es have a reasot)able expectation that the charity has adequate resources lo continue in operational existence for the foreseeable futurg. For this reason they continue lo adopt the going concem basls in preparing the financial stslements. 1.2 Bas5¥ of ¢onsolidaUon The financial statements consolidate the accounts of Rother Valley Railway Heritage Trust and all of its subsldlary undertaking. The resutts of the subsidiary are consolidated on a line by line basls. The rgsults of subsidiaries acqulred during the year are induded from th6 effective date of acquisition. 1.3 Fund a¢Gountlng General fijnds are unrestricted funds which are 8vailabl8 for use at the discretion of the Trust$es in furtherance of the general objectivgs of the charity and which have not been deslgnated for other purposes. Restrielèd fvnds are ftJnd8 which are to be used In accordance wlh specific rgstrictions imposod by donors or which have been raised by the charfty for partIlar purposes. The costs ol raising and aéminislering such funds are charged against the specific fund. The aim and use of each restrtcted fund is sel out in the notes lo the financial ststements. Investment Income, gains and losse8 are all¢)cated to the appropriate fund. Page 12
RQTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES (contlnued) 1.4 InGomo Al Income is recognised once the charity has enliuement lo the Income. it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is tsken as the eadier of the date on which eilh8r the charity is awa that probate has been granted, the eslale has been finalised and notification has been made by the execulorlsl lo Ihe Trust that a distribution wlll be made, or when a distribution is received from the eslale. Receipt of a legacy, in whole or in part. is only considered probable when the amount can be measured reliably and the charity has been notified of the executorf8 intention to make a dislribulion. Where leg8cies have been notified lo th8 charity, or th6 Charity is aware of the granting of probate. and the criteria for income recognltion have not been met. then the legacy is troaled as a ntIngent asset and disdosed K material. Income tax recoverable in rèlation to donations received under Gift Aid or deeds of Govenant 15 recognised at the time of the donation. Income tax recoverable in rg181ion lo investment income is recognised at the me the investm&nt income is receivable. 1.5 Exp•ndllure Expenditiire is re¢ogni$ed once there is a legal or con8lruclive obligation to transfer economic benefit to a third paty. 11 Is probable that a transfer of economic benefits wll be required in settlement and the amount of th8 obligation can be m88sured Teliabty- Expendilura is classrfied by activity. The costs of each activity are made up of the total of direct costs and shared costs, Including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated direclly lo that activity. Shareil costs which contribute lo more than one activity and support costs which are not attributable to a Singlo activity are apportioned between those ivilies on a basis consistent wlh the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset'5 use. Support costs are those costs incurrèd directly In Support of expendifvre on the objects of the charity. Gfanl8 payable are charged in the year when the offer is made except in those casgs where the offer is conditional. such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject lo conditions which have not been met at the year end are noted as a commitment, but not a¢crued as exp8nditur8. Al expenditure is Inclusive of irrecoverable VAT. Charitable activiU8s and Governance cos18 are costs incurred on the charitys educational operation$. induding support costs and costs relating to the govemance of the charity apportioned to charitable activities. Page 13
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES Icontlnuedl 1.6 Tanglbk fixed assets and depr•ciation l assets costing more than £50 are capitalised. A review for impairment of a fixed 88sel is carried out if events or changes in circumstancés indicate that th8 carrwng value of any fixed asset may not be recoverable. Shortfalls between thè carrying value of fixod assals and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Acb'vllles. Tangible fixed assets are carried at cost, net of d6prgcialoft and any provision for impairment. Depreciation is provided at rates calculated lo write off tho cost of fixed assets, less their estimated rgsSdual value, over their expected useful lives on the following bases= Pemianenl way Buildings and structures Land Fixtures & fittings Equipment Rolling sloGk 20/0 slraighl Ilne 10% slraighl line No d8prgcialion 200h slraighl line 25Oh straight ling 5Vh1100A Straight lino 1.7 Investments Investments are staled al market value at the balance sheet dat¢. The Statement of flnanclal activltses indudes the net gains and losses arising on revaluations and disposals throughout the year. lil Subsidiary undertakings Investments in subsidiaries are valued at cost less provlslon for impalrmenl. 1.8 Interest r•¢elvablo Interest on funds held on dgposll is Induded when receivable and the amount can be measured reliably by the charity.. this is normally tjpon nolificalion of the interest pald or payable by the Bank. 1.9 Debtors Trade and other debtors are recognised at the SeeMent amount after any trade discount offèred. Prepayments are valued al the amount prepaid nel of any trade discounts due. 1.10 Cash at Bank and in hand Cash al bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. Page 14
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES leontlnuedl 1.11 Liabilltlos and provl$lon$ Liabilities are Cognised when ther9 is an obligation at the Balance Sheet date as a result of a past event, il is probable that a transfer ol economic benefit wll be requlrtsd in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities ara recognised al the amount that the cha¥ity anticipates it will pay to setde the debt or the amount it has receiveé as advanced p8yments for the goods or services It must provide. Prowsions are measured at tho best estimate of the amounts requlred to settle the obligation. Where the effect of the lime value of money is material. the provision is based on tha present value of those amounts, discounted al the pre-tsx discount rata that reflgcts the risks spocific lo tho liability. The unwinding of the discount is recognised within intsrest payable and similar ch8rg8S. 1.12 Crltlcal accountlng •$tlmatss and ar•a$ ol ludgm•nt Estimates and judgments are continually evalual8d and are based on hlstorical experience and other factors, including expectations of fuluie events that are believed lo be reasonable under the clrcumstsnces. Critical a¢UntIng 8slimales and assumpllons.. Tangible fixed assets.. the directors annually assess both the r05idual value of these assets and the expècted useful life of such assets based on experience. GENERAL INFORMATION Thg principal activity of the charlty during the year wa8 to pres6Ne for the bengfil of tha public of Kent and East Sussex and of tha nation the historical, architectural and constructional heritage that may exist in and around Kent and East Sussex in buildings or structures of parb'cular beauty or historical, architectural or constructional interest. The charity 1$ an unincorporated charity which is registered in England and Wales (10884521. The address of the registered office is= Robertsbridge Junction Statlon Slalion Road Robert8bridge East Sussex TN32 5DG Page 15
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 INCOME FROM DONATIONS AND LEGACIES Unrestrlctod Restrlctod funds funds 2020 2020 Total funds 2020 Total ftind$ 2019 Donations Other similar incoming resoLtrcos 590.432 156,623 747,055 T.776 16,474 Total donations and legacies 590,432 156.623 747,055 23.650 Tot812019 23.650 23,650 FUNDRAISING INCOME Unrestrlcted funds 2020 Restrlcted funds 2020 Total funds 2020 rotal funds 2Q19 S(xap sales Rent received 108 7,351 7,351 7.351 7,351 7.351 7,459 Tofal 2019 7,459 7,459 INVESTMENT INCOME Unrestrlcted funds 2020 R•stri¢ted funds 2020 Total funds 2020 Total fvnds 2019 Interest receNed 249 918 Total 2079 918 918 Page 16
ROTHER VALLEY RAILWAY IIERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 DIRECT COSTS Prlnclpal actlvlty Total 2020 Tot81 2019 Tools and general consumables Rolling stock restoration Repair5 and maintenance Diesel Abortive public inquiry $1S Deprecialior* 1,02S 264 1.795 15 58.845 88,144 1,025 1,292 994 267 10 1,795 15 58,845 88.144 81, 768 150,088 150.088 84,331 Total 2019 84,330 84.330 SUPPORT COSTS Prfnclpal actlvlty Total 2020 Total 2019 Rent paid Insurance Eleclriryty and heating Water Telephone Waste Collectton Subscriptions Legal and professional Bank charyes Forestry and conversation Cleaning Sundry expenses Health and safety expenses 5,001 4,892 2.102 32 680 S.001 4.892 2.102 32 680 800 5,001 4, 742 1,560 210 497 755 200 883 197 3.075 582 189 2.308 12 1.709 372 582 189 2,308 12 1,709 372 2,347 200 18,679 18,679 19,674 Total 2019 19.674 19,674 Page 17
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 GOVERNANCE COSTS Unrestrict8d funds 2020 R•strict•d funds 2020 Total funds 2020 rot81 funds 2019 Govemance Auditors, remunerallon 5,410 5.410 5.280 ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE Deprtclatlon Other costs 2020 2020 Total 2020 Total 2019 Direct costs- principal acbvity Support costs - principal activty 88,144 61,944 18,679 150,088 18,679 84,330 19.674 Charitable actlvitlO8 88,144 80,623 168,767 104,004 EXpondIre on governance 5.410 5,410 5.280 Totsl 2020 88.144 86.033 174,177 109.284 Totsl 2019 81,767 27,5t7 709,284 10. NET INCOMEI{EXPENDITUREI This 18 slated after char9ing'. 2020 2019 Dgprecialion of tangible fixed assets.. - owned by the charEtable group Audilols remuneration - audit 88,144 5,410 87.767 5.280 11. AUDITORS. REMUNERATION The Audilols remuneration amounts to an Audit fee of £5,41012019- £5,280). Page 18
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 12. TANGIBLE FIXED ASSETS Buildings P•manent and way structuras Fixturos, Ilttlng$ and Land equiprnent Rolling Stock Group Cost Al l January 2020 Additions Total 3,089.015 341.226 127,4S4 441.774 17,021 99,478 182.336 3.857,600 35.715 476.419 At 310ecember 2020 3.430,241 127.454 441,774 116,499 218.Q51 4.334019 Dgpr•clation Al 1 January 2020 Charge for the year 403,183 68,614 39.942 11.113 14.337 1.182 69,962 7,235 527,424 88,144 Al 31 December 2020 471,797 51,055 15,519 77.197 615,568 Net book value At 31 Decembgr 2020 2,958,444 76.399 441,774 100.980 140.854 3.718.451 At 31 December 2019 2,685,832 87,512 441, 774 2.684 112,374 3,330, 176 Land Charity Cost Al 1 January 2020 and 31 December 2020 441,774 Doprociatlon At 1 January 2020 and 31 December 2020 N•t book valu• AI 31 December 2020 441.774 At 31 December 2019 441,774 Page 19
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 13. FIXED ASSET INVESTMENTS Unlist•d Inve$tmonts Group At 1 January 2020 and 31 December 2020 2,000 Unlisted investments represent Rother Valley Railway Limilgd's 8 ordinary shares {nominal value of £250 each) of The 4253 Locomobve Co Limited. ThSs represfjnts less than 1% of the shar6 capital. Share8 In group undert•king$ Charlty At 1 January 2020 and 31 December 2020 37,749 Shares in group undertakings represent Rother Valley Heritage Trust's holding in Rolher Valley RaiaY Limited. 1& DEBTORS Grou Charl 2020 2019 2020 2019 Other debtors Pr$payments and accrued Income 29.436 4,762 18.336 3.946 35 34,198 22,282 35 Page 20
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 15. CREDITORS: Amounts falllng duo wlthln one year Grou Charl 2020 2019 2020 2019 Other cdItorS Accruals and deferred inGom8 4.076 50,233 16,537 5.280 5,319 5,280 54.309 27,817 5,319 5,280 16. FINANCIAL INSTRUMENTS 2020 2019 Financlal assets measured at amortised cost 672,693 445,075 FinaTrclal118bilities measured at amortised cost 150.238) (18,493) Financial assets measured al amortised cost CoMpse cash al bank and other debtors Financial liabilities measure¢ al amortised cost comprise other creditors and accruals. 17. NON-CONTROLLING INTEREST8 Equlty Al 1 January 2020 Proportion of profiVlloss} after tsxat¢on for the year 141 131 At 31 December 2020 138 Page 21
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. STATEMENT OF FUNDS STATEMENT OF FUNDS. CURRENT YEAR Balance at 31 DgGember 2020 8al•nco at 1 January 2020 Income Exp•nditure Unrnstrlct•d funds General Funds - all funds Mlnority interest Other General funds 3,730,771 141 631.486 157.3101 4,304,947 141 {33,432) 133,454} 22 3,730,912 598.032 157.2881 4.271,656 Restrlcted fund Hawkhurst Signal Box Fund 8P Tank Restoration Fund Charwelton Restoration Gazebo fvnd Turntable fund 623 352 27,245 250 {623) 352 50,030 92 17,730 50,000 127.2151 11581 188,8931 106.623 28,470 156,623 1116,889) 68.204 Total of funds 3,759.382 754.655 {174,1771 4,339,860 Restricted funds are funds which have been given for a parttcular purpose or projert. These funds have been 'ring fenced, for use in support of tho aims of thg respective fvnd. The Charwelton Restoration Fund is monies for the rebuilding of a vintage 1917 Manning Wardl8 steam Locomotive and grants were mado durfng the year to further this yse. Other fvnds are restllGtod in line wth the purposo indicated in the name of the fund. Page 22
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DecEMBER 2020 18. STATEMENT OF FUNOS {contlnuedl 8TATEMENT OF FUNDS - PRIOR YEAR Balanco at 31 Dgcembor 2019 Balance at l January 2019 rransfgrs in/out Gains/ (Losses) Incom• Expendllur8 General funds General Funds - 811 fund8 inority interest Restricted funds 3, 727.478 350 31,902 (50, 167J 2t,524 {175) 34 (34) 3, 730, T71 14t Rolvenden Cardage Shed Fund Hawkhurst Signal Box Fund 8P Tank Resloralion Fund Charwelton Restoration Gazebo fvnd 21,349 (21,349) 623 623 227 86,362 250 t25 352 27,245 250 (59.117) 108,811 125 (59,117) (27.349) 28,470 Total of fvnds 3,836.639 32,027 (109,284) 3, 759.382 19. A14ALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unra$trl¢tsd R•8trl¢tgd funds funds 2020 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Current ass8ts Creditors du8 Within one year 3,718,453 2,000 605,512 154,3091 3,718,453 2.000 673.716 154.309) 68.204 4,271.656 68,204 4339,860 Page 23
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 19. ANALYSIS OF NET ASSETS 8ETWEEN FUNDS Icontlnu•dl ANALY81S OF NET ASSETS BETWEEN FUNDS . PRIOR YEAR Unrestricted funds 2019 Reslrictod funds 2019 Total funds 2019 Tangible fixad assets Fixed asset investm8nts c1jent assets Creditors due within one year 3,330. 178 2,000 420,557 121,817) 3,330. f78 2.000 449,021 (21,817) 28,470 3,730.912 28.470 3, 759,382 20. CAPITAL COMMITMENTS At 31 December 2020 the group and charity had capital commitments as follows: Grou Charl 2020 2019 2020 2019 Contracted for bul not provided in these financial statements 73,887 51,178 73,887 51.178 21. OPERATING LEASE COMMITMENTS Al 31 December 2020 the total of the group's fvture mlnlmum lease paymgnts under nonwcancellable operating leases was.. 2020 Group Amounts payable: Wlthin 1 year 2019 5,000 Page 24
ROTHER VALLEY RAILWAY HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 22. RELATED PARTY TRANSACTIONS During the y88r Rother Valley Rallw8y Heritage Trust gave grants lo Rolher Valley Railway Limited totalling £543,000 12019- £360,000) in relation lo various conslwcllon projects on reconstruction of the Rother Valley Railway. As at 31 December 2020 £nil {2019 - £nill was owed to Rolher Valley Railway Limited. During tho year rent of £112019 - £11 was paid by Rother Valley Railway Limited to Roiher Valley Railway Heritage TrusL During the year nSUltancY services of £17,819 (2018 - £9.9911 were received from David Gillett Consulting Limited, a company of which D Gillett is a director and is also a dir8clor of Rolher Valley Rallway Limited. As at 31 December 2020 £nil {2019- £nill was owed by Rother Valley Railway Limlted. The charity does not have any employe88. The key management personnel are considerod lo be th8 trustees who receive no remuneration. 23. PRINCIPAL SUBSIDIARIES R¢ther Valley Rallway Llmlted Subsidi8ry name Company registration number Basis of control Equity shareholding OA Rother Valley Railway Limllèd 2613S53 99% Total assets as al 31 December 2020 Total liabilllies as at 31 December 2019 Totsl gquity as al 31 Decembgr 2020 £ 3,318.616 £13,310,946) £ 7,670 Tumover for the year ended 31 December 2020 Expenditure for the year ended 31 Docember 2020 Loss for the year ended 31 Dgcgmber 2020 £ 167,874 £1168.1331 £12591 Page 25