**Registered number: 03226401 Charity number: 1088897**
## **THE WEARDALE RAILWAY TRUST**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 8|
|**Independent examiner's report**|9|
|**Statement of financial activities**|10|
|**Balance sheet**|11 - 12|
|**Notes to the financial statements**|13 - 26|
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY 2021**
## **Trustees**
K Richardson, Chair A Slack J H Askwith (appointed 14 March 2020) P Kearsley R Maughan G Mudd S Raine J Clarke P Wilson (resigned 14 March 2020) Dr M Wood, Vice Chair M Woodhams S Adams Dr R Dingle
## **Company registered number**
03226401
## **Charity registered number**
1088897
## **Registered office**
Stanhope Station Stanhope Bishop Auckland Co Durham DL13 2YS
## **Company secretary**
J Clarke
## **Treasurer**
R Dingle
## **Independent Examiners**
Waltons Clark Whitehill Limited Chartered Accountants Maritime House Harbour Walk The Marina Hartlepool TS24 0UX
Page 1
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 JANUARY 2021**
The Trustees present their annual report together with the financial statements of the company for the year 1 February 2020 to 31 January 2021. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Structure, governance and management**
The Weardale Railway Trust is a registered charity (No 1088897) and is also a not for profit limited company constituted by a memorandum and articles of association (company registration No 3226401).
The Trust became a charity on 12 October 2001 and operates purely on a voluntary basis.
The business of the Trust is managed by a Council (Trust M&As clause 45) consisting of a maximum of 12 Directors (Trust M&As clause 37 - amended at the Trusts AGM held on 13 November 2010) including a Chair, a Vice Chair and a Treasurer. The Council Directors are nominated and elected by the members at the Trust's AGM. The Trust's M&As require 33.3% of the Directors to resign at each AGM to allow for rotation of the members of the Trust Council (Trust M&As clause 56 - amended at the Trust's AGM held on 18 November 2006).
The Trust Council met 5 times during the year to enact the Trust's business.
There is one directorship on the board of Weardale Railway Limited. The Trust Council nominated Tony Slack as its representative.
Page 2
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Objectives and activities**
## **Activities undertaken to achieve objectives**
All members of the Trust Council give their time voluntarily and receive no benefit from the charity. Expenses reclaimed from the Trust during the year are detailed in note 8 to the financial statements.
The Trust has three main objectives:
1. To restore the rail link between Bishop Auckland and Wearhead in County Durham.
2. To restore and preserve land, buildings and other artefacts connected with the railway through Weardale.
3. To study, compile record and restore, preserve items of interest and provide instruction on such activities; to provide exhibitions for visitors and to operate, sponsor and support displays for the stimulation of information, education and interest in railways.
As stated in Trustees Annual Report 2009 – 2010 the Trust volunteers, along with Weardale Railways CIC personnel, completed the link between Stanhope and Bishop Auckland completing one the Trust's main objectives (Objective 1).
The activities undertaken by Trust volunteers consisted of some limited continued restoration and maintenance of the railway infrastructure, maintenance and repair work on the Trust’s steam engine Number 40, 2 car 108 DMU when the government guidance on the pandemic allowed.
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Page 3
## **THE WEARDALE RAILWAY TRUST**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Membership**
We have seen a slight decline in membership over the past 12 months. There have been 27 new members join the Trust in the year to 31 January 2021
The breakdown of membership categories remains largely the same as the previous year; the main change is a slight decline in Concessionary membership offset by a slight increase in Full membership.
Complimentary Membership is 6%, Life Membership is 15%, Full Subscription membership is 21.5%, 42% are Concessionary Members, 15% are Joint and <0.5% are Junior.
The Trust has retained a core of enthusiastic members committed to publicising and supporting the Weardale Railway and there is some evidence that, although the largest category is Concessionary, the Trust is attracting new and younger members.
Page 4
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Chairman's Report**
Just prior to the trust Annual General Meeting on 14th March 2020, two events occurred which were to have a significant impact on our volunteering activities in 2020. At that meeting we introduced Jonathan Ruffer and his team from the Auckland Project, who had stepped in and rescued Weardale Railway from administration, having finalised the deal just the previous day. The other event that occurred within just a few days of our meeting was the hitherto unprecedented lock-down that was introduced, both nationally and internationally, to combat the surging COVID-19 pandemic. No one at that time realised what a devastating impact this was to have on all our lives.
The Auckland Project set up a new business for the operation of the railway. This was originally registered as “Swinmadco Limited” then was later changed to “Weardale Railway Limited” (WRL). When the railway had been brought out of administration several years earlier by a different company, Weardale Railway Trust loaned £40K to allow the deal to go ahead, along with other loans made by Wear Valley District Council (which was later subsumed into Durham County Council). The loan made by the Trust was in the form of an interest free agreement, with an open-ended repayment period, and the understanding was that there was a possibility that this money may never be repaid. It did, however, give the Trust a 12.5% share in WRCIC and 3 directorships on the board. Unfortunately, due to WRCIC going into administration, we have had to accept the loss of the loan and the automatic right to directorships. We have, however, been invited to nominate one representative director on the board of WRL. Originally Steve Raine took up this position and his extensive knowledge of the railway, it’s background and the rules and regulations have been invaluable in assisting WRL to manage the takeover. Operations on the line had to be stopped awaiting the transfer of the operating licence exemption from the ORR and the obtaining of a new Transport and Works Act Order. This, combined with the effects of the pandemic, resulted in cessation of all trust activities for much of 2020.
The COVID-19 pandemic had the most serious effect on our work at the railway. It is a fact of life that most of our volunteers are of senior years and therefore the most vulnerable to the effects of the pandemic. Following government advice, many had to isolate by staying home for health and age-related reasons. Any volunteering efforts that could be made were sporadic and severely restricted. This had a knock-on effect on our fund raising. We were unable to operate the Trust shop at Stanhope station and there was no income from the Trust’s subsidiary company WRHSL. In fact, following government guidelines. After the year end the Trust Council had to agree to subsidise WRHSL by way of a loan to allow it to remain solvent, with the expectation that, once train services can recommence, the loan can be repaid from passenger revenue. We have had assurances from WRL that the Trust operated heritage service can restart as soon as circumstances allow, so it is hoped that this is a temporary situation. Fortunately, the loss of revenue from our heritage service has been ameliorated by a series of government support grants and we should thank our treasurer, Bob Dingle, for the work he has done to successfully apply for this support. The result is that, despite these serious challenges, the Trust accounts show a very healthy balance.
Finally, I believe we should acknowledge the work that has been done by those volunteers who made the effort when circumstances have allowed.
Page 5
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Traction report**
## **Class 108 DMU**
Despite the COVID-19 pandemic our small group of engineering volunteers managed to make some headway in the restoration of the Trust’s class 108 DMU. During the short time the unit was used at the end of the 2019 operating season, we noted several faults that would need attention before we could be confident that we have a reliable vehicle for the future. In a way it was fortunate that the combination of the takeover of the railway by WRL and the associated delays, and the effects of the COVID-19 pandemic, meant that we were unable to operate a heritage service. This allowed us an extended period in which to tackle some of these issues, albeit under severe restrictions that the pandemic introduced.
## Consequently, during 2020 we have:
- resolved a faulty direction change issue on one axle by replacing a damaged piston liner
- had a faulty starter motor from one of the four engines repaired
- removed one of the gearboxes, sent it away for overhaul, and reinstalled it
- commenced stripping the flaking paint from the roof of both cars
- started repainting seat frames
- begun stripping and varnishing internal window surrounds
- purchased and replaced the remaining worn brake blocks
There remains much to be completed. Stripping the original coating from the roof is a major undertaking which has been intermittently halted due to other painting work going on in the building. As mentioned, the pandemic also had a severe effect on our activities, as did everyone’s other commitments outside the railway.
However, we have strived to carry out this work to a high standard so that we can be certain that the 108 will continue be a major asset to the Trust.
## **0-6-0 Sentinel Shunter**
It had long been a wish that our Trust owned Rolls-Royce 0-6-0 Sentinel shunter should have a repaint, once funds would allow. With our volunteer’s time being concentrated on restoring the 108 DMU, and with our funds being in a healthy state, the board decided to contract out the restoration of the Sentinel bodywork. Consequently, we negotiated very favourable terms with WRL to do the work and their employees have stripped, repaired, and repainted the shunter to a very high standard. Our future plan for this vehicle includes a full engine service and attention to a long-standing overheat problem. Again, by ensuring that the work is done to a high standard we continue to retain maximum value in this asset.
Page 6
## **THE WEARDALE RAILWAY TRUST (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Financial review**
The Trust's total income for this financial period was £66,253 and the total expenditure was £37,117. In 2019/20 the total income was £36,046 and total expenditure was £16,583. The income was higher in 2020/21 as a result of a donation of £50,000 towards a new platform. The impact of COVID-19 meant that the shop was closed and the subsidiary was unable to trade for much of the year, meaning the gift aid income was reduced. This was offset by a local authority Covid grant of £10,000. The higher expenditure in the current year includes a bad debt write off in respect of the loan to WRCIC as mentioned above.
The Trust had a voluntary income of £67,727 from subscriptions, donations, grants and appeals.
Fundraising income from the shop and Trust lottery amounted to £1,028.
The Trust made payments in furtherance of its objectives of £36,967.
It is the Trustees' intention to maintain 3-6 months of operating costs in reserve in order to cover any unforseen expenditure on its charitable objectives. This equates to between £3,000 and £6,000 and as at 31 January 2021 total reserves were £43,967 of which the free reserves (after deducting fixed assets and long term debtors and creditors) were £80,012 and cash in the bank was £109,349.
## **Going Concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Page 7
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021**
## **Statement of Trustees Responsibilities**
The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
_**K Richardson**_ (Chair of Trustees) Date:
Page 8
## **THE WEARDALE RAILWAY TRUST (A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 JANUARY 2021**
## **Independent examiner's report to the Trustees of The Weardale Railway Trust ('the company')**
I report to the charity Trustees on my examination of the financial statements of the company for the year ended 31 January 2021.
## **Responsibilities and basis of report**
As the Trustees of the company (and 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 financial statements 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 the company's accounts 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**
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:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the financial statements do not accord with those records; or
3. the financial statements 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 financial statements 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.
This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report.
Signed:
Dated:
## **Heather O'Driscoll FCA**
## **Waltons Clark Whitehill Limited**
Chartered accountants
Page 9
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JANUARY 2021**
|**Note**
**INCOME FROM:**
Donations and legacies
3
Other trading activities
4
Investments
5
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
6
Charitable activities
7
**TOTAL EXPENDITURE**
**NET (EXPENDITURE)/INCOME**
Transfers between funds
15
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward as
previously stated
Prior year adjustment
Total funds brought forward as restated
Net movement in funds
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2021**
**£**
**17,560**
**1,028**
**(2,502)**
**16,086**
**150**
**36,967**
**37,117**
**(21,031)**
**30,366**
**9,335**
**212,751**
**-**
**212,751**
**9,335**
**222,086**|**Restricted**
**funds**
**2021**
**£**
**50,167**
**-**
**-**
**50,167**
**-**
**-**
**-**
**50,167**
**(30,366)**
**19,801**
**2,080**
**-**
**2,080**
**19,801**
**21,881**|**Total**
**funds**
**2021**
**£**
**67,727**
**1,028**
**(2,502)**
**66,253**
**150**
**36,967**
**37,117**
**29,136**
**-**
**29,136**
**214,831**
**-**
**214,831**
**29,136**
**243,967**|_Total_
_funds_
_2020_
_£_
_8,474_
_13,101_
_14,471_|
|---|---|---|---|---|
|||||_36,046_|
|||||_1,400_
_15,183_|
|||||_16,583_|
|||||_19,463_
_-_|
|||||_19,463_|
|||||_189,368_
_6,000_|
|||||_195,368_
_19,463_|
|||||_214,831_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 13 to 26 form part of these financial statements.
Page 10
## **THE WEARDALE RAILWAY TRUST (A company limited by guarantee) REGISTERED NUMBER: 03226401**
## **BALANCE SHEET AS AT 31 JANUARY 2021**
|**Note**
**FIXED ASSETS**
Tangible assets
9
Investments
10
**CURRENT ASSETS**
Stocks
Debtors: amounts falling due after more
than one year
11
Debtors: amounts falling due within one
year
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
Creditors: amounts falling due after more
than one year
13
**NET ASSETS**
**CHARITY FUNDS**
Restricted funds
15
Unrestricted funds
15
**TOTAL FUNDS**|**800**
**-**
**2,606**
**109,349**
**112,755**
**(10,863)**|**2021**
**£**
**161,819**
**1**
**161,820**
**101,892**
**263,712**
**(19,745)**
**243,967**
**21,881**
**222,086**
**243,967**|_800_
_15,540_
_14,971_
_82,676_
_113,987_
_(5,782)_|_As restated_
_2020_
_£_
_136,088_
_1_
_136,089_
_108,205_
_244,294_
_(29,463)_
_214,831_
_2,080_
_212,751_
_214,831_|
|---|---|---|---|---|
Page 11
**THE WEARDALE RAILWAY TRUST (A company limited by guarantee) REGISTERED NUMBER: 03226401**
# **BALANCE SHEET (CONTINUED) AS AT 31 JANUARY 2021**
The company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **K Richardson**
(Chair of Trustees) Date:
The notes on pages 13 to 26 form part of these financial statements.
Page 12
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **1. GENERAL INFORMATION**
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
The registered address is:
Stanhope Station Stanhope Bishop Auckland Durham DL13 2YS
## **2. ACCOUNTING POLICIES**
## **2.1 Basis of preparation of financial statements**
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 (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Weardale Railway Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Going concern**
The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Trust to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the company’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Page 13
**THE WEARDALE RAILWAY TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.3 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Gifts donated for resale are included as income when they are sold. The Trustees acknowledge that they are assets of the company as soon as received but the minimal value of these assets makes it uneconomic to value them prior to sale. No amounts are included in the financial statements for services donated by volunteers.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities are costs incurred on the company's charitable operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
## **2.5 Tangible fixed assets and depreciation**
All assets costing more than £300 are capitalised.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
|Rolling Stock|- 10% Reducing balance|
|---|---|
|Equipment|- 10% Reducing balance|
|Platform|- 15-50 Years straight line|
|Motive Power units|- 20-100 Years straight line|
## **2.6 Investments**
Investments are stated at cost at the balance sheet date.
Page 14
**THE WEARDALE RAILWAY TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.7 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount.
Where the effect of the time value of money is material the asset is based on the present value of those amounts, discounted at the pre tax discount rate the reflects the risks specific to the asset. The unwinding of the discount is recognised within interest receivable.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and 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.
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **2.12 Financial instruments**
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 15
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.13 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 16
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **3. INCOME FROM DONATIONS AND GRANTS**
|**Unrestricted**
**funds**
**2021**
**£**
**Donations**
Donations
**1,646**
Subscriptions
**4,679**
Tax recoverable on gift aided donations and
subscriptions
**1,235**
No 40 appeal
**-**
Grants
**10,000**
**17,560**
_Total 2020_
_7,886_|**Restricted**
**funds**
**2021**
**£**
**50,000**
**-**
**-**
**167**
**-**
**50,167**
_588_|**Total**
**funds**
**2021**
**£**
**51,646**
**4,679**
**1,235**
**167**
**10,000**
**67,727**
_8,474_|_Total_
_funds_
_2020_
_£_
_1,194_
_5,284_
_1,436_
_60_
_500_|
|---|---|---|---|
||||_8,474_|
|||||
## **4. FUNDRAISING INCOME**
|**Unrestricted**
**funds**
**2021**
**£**
Lottery
**893**
Other fundraising income
**-**
Hire of 108
**-**
Shop sales
**135**
**1,028**
_Total 2020_
_13,101_|**Total**
**funds**
**2021**
**£**
**893**
**-**
**-**
**135**
**1,028**
_13,101_|_Total_
_funds_
_2020_
_£_
_1,294_
_116_
_2,167_
_9,524_|
|---|---|---|
|||_13,101_|
||||
Page 17
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **5. INVESTMENT INCOME**
|**Unrestricted**
**funds**
**2021**
**£**
Gift aid donation from subsidiary
**(2,547)**
Interest on fair value movement of loan
**-**
Bank interest receivable
**45**
**(2,502)**
_Total 2020_
_14,471_|**Total**
**funds**
**2021**
**£**
**(2,547)**
**-**
**45**
**(2,502)**
_14,471_|_Total_
_funds_
_2020_
_£_
_13,560_
_866_
_45_|
|---|---|---|
|||_14,471_|
||||
## **6. RAISING FUNDS**
|**Unrestricted**
**funds**
**2021**
**£**
Fundraising expenditure
**150**
Cost of shop stock
**-**
**150**
_Total 2020_
_1,400_|**Total**
**funds**
**2021**
**£**
**150**
**-**
**150**
_1,400_|_Total_
_funds_
_2020_
_£_
_360_
_1,040_|
|---|---|---|
|||_1,400_|
||||
Page 18
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **7. CHARITABLE ACTIVITIES**
|**Unrestricted**
**funds**
**2021**
**£**
General admin
**2,350**
Repair of locomotives
**9,899**
Magazine costs
**1,090**
Other expenses
**1,358**
Depreciation
**4,635**
Independent examination
**520**
Accountancy fees
**1,500**
Interest paid on fair value movement
**75**
Bad debts written off
**15,540**
**36,967**
_Total 2020_
_14,609_|**Restricted**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
_574_|**Total**
**funds**
**2021**
**£**
**2,350**
**9,899**
**1,090**
**1,358**
**4,635**
**520**
**1,500**
**75**
**15,540**
**36,967**
_15,183_|_Total_
_funds_
_2020_
_£_
_2,310_
_2,069_
_1,280_
_2,638_
_4,693_
_500_
_1,450_
_243_
_-_|
|---|---|---|---|
||||_15,183_|
|||||
## **8. TRUSTEES' REMUNERATION AND EXPENSES**
During the year, no Trustees received any remuneration or other benefits _(2020 - £NIL)_ .
5 Trustees received reimbursement of expenses, already paid out personally by them on Trust business, amounting to £2,813 in the current year _(2020 - 4 Trustees -£1,707)_ .
Page 19
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **9. TANGIBLE FIXED ASSETS**
|**Cost**
At 1 February 2020 (as
previously stated)
Prior Year Adjustment
At 1 February 2020 (as
restated)
Additions
At 31 January 2021
**Depreciation**
At 1 February 2020
Charge for the year
At 31 January 2021
**Net book value**
At 31 January 2021
_At 31 January 2020 (as_
_restated)_|**Rolling**
**stock**
**£**
**12,000**
**-**
**12,000**
**-**
**12,000**
**8,959**
**304**
**9,263**
**2,737**
_3,041_|**Equipment**
**£**
**10,760**
**-**
**10,760**
**-**
**10,760**
**8,679**
**208**
**8,887**
**1,873**
_2,081_|**Platform**
**£**
**26,562**
**-**
**26,562**
**30,366**
**56,928**
**3,634**
**1,091**
**4,725**
**52,203**
_22,928_|**Motive**
**Power units**
**£**
**115,038**
**6,000**
**121,038**
**-**
**121,038**
**13,000**
**3,032**
**16,032**
**105,006**
_108,038_|**Total**
**£**
**164,360**
**6,000**|
|---|---|---|---|---|---|
||||||**170,360**
**30,366**|
||||||**200,726**|
||||||**34,272**
**4,635**|
||||||**38,907**|
||||||**161,819**|
||||||_136,088_|
Page 20
**THE WEARDALE RAILWAY TRUST (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **10. FIXED ASSET INVESTMENTS**
|**Cost**
At 1 February 2020
At 31 January 2021
**Net book value**
At 31 January 2021
_At 31 January 2020_|**Shares in**
**group**
**undertaking**
**£**
**1**|
|---|---|
||**1**|
||**1**|
||_1_|
## **Subsidiary undertaking**
The following was a subsidiary undertaking of the company:
|**Name**||||**Holding**|
|---|---|---|---|---|
|Weardale Railway Heritage Services Limited||||**100%**|
|The financial results of the subsidiary for the|year were:||||
|**Name**|**Income**|**Expenditure**|**Profit/**|**Aggregate**|
||**£**|**£**|**(Loss)/**|**of share**|
||||**Surplus/**|**capital and**|
||||**(Deficit) for**|**reserves**|
||||**the year**|**£**|
||||**£**||
|Weardale Railway Heritage Services|**159**|**(193)**|**(34)**|**1**|
|Limited|||||
The financial results of the subsidiary for the year were:
Weardale Railway Heritage Services Limited donates all profits to the Trust and made a donation of £11,014 for the year ended 31 January 2020.
Page 21
## **THE WEARDALE RAILWAY TRUST**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **11. DEBTORS**
|**Due after more than one year**
Other debtors
**Due within one year**
Amounts owed by group undertakings
Other debtors
Tax recoverable|**2021**
**£**
**-**
**2021**
**£**
**-**
**1,378**
**1,228**
**2,606**|_2020_
_£_
_15,540_|
|---|---|---|
|||_2020_
_£_
_13,561_
_-_
_1,410_|
||||
|||_14,971_|
## **12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Other loans
Other taxation and social security
Accruals and deferred income|**2021**
**£**
**8,843**
**-**
**2,020**
**10,863**|_2020_
_£_
_3,265_
_568_
_1,949_|
|---|---|---|
||||
|||_5,782_|
## **13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Other loans|**19,745**|_29,463_|
## **14. Prior year adjustments**
The Trust has recognised the donation of two Sentinel locomotives that were donated by Lafarge when their works in Weardale closed. Although the shunters were donated many years ago proof of ownership has only recently been established. This confirmed that the Trust has owned these since initial donation. As a result a prior year adjustment has been made to recognise the value of the two locomotives at £3,000 each. As a result the brought forward value on both fixed assets and the capital fund has increased by £6,000 in 2020.
Page 22
## **THE WEARDALE RAILWAY TRUST (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **15. STATEMENT OF FUNDS**
**Statement of funds - current year**
|**Balance at 1**
**February**
**2020**
**£**
**Unrestricted funds**
Capital Fund
**136,088**
General Fund
**76,663**
**212,751**
**Restricted funds**
No 40 Maintenance Fund
**-**
Weardale Area Action
Partnership
**960**
Durham County Council
(NLDC)
**749**
Friends of Heritage Line
**275**
Wearhead Extension
**96**
Kingfisher Platform
**-**
**2,080**
**Total of funds**
**214,831**|**Income**
**£**
**Expenditure**
**£**
**-**
**(4,635)**
**16,086**
**(32,482)**
**16,086**
**(37,117)**
**167**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**50,000**
**-**
**50,167**
**-**
**66,253**
**(37,117)**|**Transfers**
**in/out**
**£**
**30,366**
**-**
**30,366**
**-**
**-**
**-**
**-**
**-**
**(30,366)**
**(30,366)**
**-**|**Balance at**
**31 January**
**2021**
**£**
**161,819**
**60,267**|
|---|---|---|---|
||||**222,086**|
||||**167**
**960**
**749**
**275**
**96**
**19,634**|
||||**21,881**|
||||**243,967**|
Page 23
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **15. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
Capital Fund
General Fund
**Restricted funds**
No 40 Maintenance Fund
Weardale Area Action Partnership
Durham County Council (NLDC)
Friends of Heritage Line
Wearhead Extension
Durham County Council (Stanhope
improvements)
**Total of funds**|_As restated_
_Balance at_
_1 February_
_2019_
_£_
_139,883_
_53,420_
_193,303_
_-_
_960_
_749_
_275_
_82_
_-_
_2,066_
_195,369_|_Income_
_£_
_-_
_35,457_
_35,457_
_74_
_-_
_-_
_-_
_14_
_500_
_588_
_36,045_|_Expenditure_
_£_
_(3,795)_
_(12,214)_
_(16,009)_
_(74)_
_-_
_-_
_-_
_-_
_(500)_
_(574)_
_(16,583)_|_Balance at_
_31 January_
_2020_
_£_
_136,088_
_76,663_|
|---|---|---|---|---|
|||||_212,751_|
|||||_-_
_960_
_749_
_275_
_96_
_-_|
|||||_2,080_|
|||||_214,831_|
Page 24
**THE WEARDALE RAILWAY TRUST (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **15. Statement of funds (continued)**
## **Unrestricted funds**
The capital fund represents funds held as fixed assets.
## **Restricted funds**
The No 40 maintenance fund is used for the maintenance of the "No 40" steam engine.
The grant from Weardale Area Action Partnership is for chainsaw training, advertising and painting rolling stock.
The grants from Durham County Council under their Neighbourhood Learning in Deprived Communities (NLDC) scheme were towards the costs of training volunteers. This will be spent on first aid training of volunteers and materials for the personal track safety course.
The Friends of the Heritage Line is money held on behalf of the Friends of the Heritage Line.
The income for the Wearhead Extension is towards extending the line out to Wearhead. This fund will be carried forward until such time as sufficient funds are raised.
A donation was received towards the building of a new platform at Kingfisher Caravan Park. Work on the platform began during the year and £30,366 has been capitalised and transferred to the capital fund. The building work was ongoing at the year end.
Page 25
**(A company limited by guarantee)**
## **THE WEARDALE RAILWAY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **Analysis of net assets between funds - current period**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
**161,819**
Fixed asset investments
**1**
Current assets
**82,031**
Creditors due within one year
**(2,020)**
Creditors due in more than one year
**(19,745)**
**Total**
**222,086**
**Analysis of net assets between funds - prior period**
_Unrestricted_
_funds_
_2020_
_£_
Tangible fixed assets
_136,088_
Fixed asset investments
_1_
Debtors due after more than one year
_15,540_
Current assets
_83,310_
Creditors due within one year
_(2,518)_
Creditors due in more than one year
_(19,670)_
**Total**
_212,751_|**Restricted**
**funds**
**2021**
**£**
**-**
**-**
**30,724**
**(8,843)**
**-**
**21,881**
_Restricted_
_funds_
_2020_
_£_
_-_
_-_
_-_
_15,137_
_(3,265)_
_(9,793)_
_2,079_|**Total**
**funds**
**2021**
**£**
**161,819**
**1**
**112,755**
**(10,863)**
**(19,745)**
**243,967**
_Total_
_funds_
_2020_
_£_
_136,088_
_1_
_15,540_
_98,447_
_(5,783)_
_(29,463)_
_214,830_|
|---|---|---|
## **17. Related party transactions**
Included within other loans is a loan of £19,745 _(2020: £19,670)_ from G Mudd, a Trustee. This loan was to assist with the repairs to "No 40" and is repayable in instalments starting once the repair work has been completed.
A £15,540 loan due from Weardale Railway Community Interest Company (a company in which the Trust held a 12.5% share) was written off during the year following the company going into administration.
Page 26