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 cu￿ent 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 h1s1o￿C81, 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$t,' maintsins, improves and develops the railway and the land, works and buildlngs relating thereto. encourages and promotes the interest, support and participation of young people in the railway. and maintains a public museum of objects of Interest in the history of the railway. d. FUNDRAISING REGULATION Rolher Valley Railway Heritage Trust complies with sector best practice. No complaints were received wsth garos to fundraising throughout the course of the year and no professional funérais&rs or commercial partners conducted fundraising as charity representatives. The board of trustees monitors and manages its lundraising regulation and com￿lanGe which are discussed al board meetings. Donations received come from a variety of donors, with th8 majority coming from main Supporters of thg charity- The Trustees rggard its relationship wth donors as highly important and it looks lo retsin the support of ils donors for many years to come. The Trustees are contlnuing lo look for further donors and will be implementlng new poliGi88 t¢ help aid the progression of the restoratlon project. Flnanclal revlow . RESERVES POLICY AND FUTURE DEVELOPMENTS Th6 Trustaes regulady rgview the reseTV•$ 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 app1leg￿On 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 appIl￿tiOn 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 R￿LwAy 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 ac￿rdanCe 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 a￿untIng 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. Ov￿ng 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 limita￿onS 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