**Registered number: 04341280 Charity number: 1092723**
**SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 JUNE 2023**
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Chairman's statement**|2|
|**Trustees' report**|3 - 10|
|**Independent auditor's report on the financial statements**|11 - 13|
|**Statement of financial activities**|14|
|**Balance sheet**|15 - 16|
|**Statement of cash flows**|17|
|**Notes to the financial statements**|18 - 39|
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2023**
|**Trustees**|K R Norton, Chair (resigned 13 December 2022)|
|---|---|
||R Treverton-Jones, Chair|
||A B Owens (OBE), Trustee (resigned 27 April 2023)|
||P C Fathers, Vice Chair|
||L M Shoaf (CBE), Trustee (resigned 12 June 2024)|
||T A Hargest, Trustee (resigned 13 February 2023)|
||M Ball, Trustee (resigned 31 March 2023)|
||D E Malyon, Trustee (appointed 22 September 2021, resigned 10 May 2024)|
||D S Kumar, Trustee (appointed 27 April 2023)|
||M A Howard, Secretary (appointed 27 April 2023)|
||P A Hobson, Trustee (appointed 6 March 2024)|
||J Meredith, Trustee (appointed 27 April 2023)|
||C W Walton, Trustee (appointed 27 April 2023)|
|**Company registered**
**number**
04341280
**Charity registered**
**number**
1092723
**Registered office**
Number One
Comberton Place
Kidderminster
Worcestershire
DY10 1QR
**Bankers**
HSBC Bank Plc
31 Church Street
Kidderminster
Worcestershire
DY10 1QR||
Page 1
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 30 JUNE 2023**
The chairman presents his statement for the year.
The past 20 months have seen significant changes at the Trust. Shelagh Paterson, the Executive Director left in October 2022 and Paul Walker the Finance Manager left very suddenly in June 2023. Following this, the three remaining staff all took extended periods of sick leave and all have subsequently left the Trust.
The Trust is now an all volunteer organisation, with some of the Trustees and volunteers working in the office on Wednesdays. Professional services are purchased from external specialists as required. This has led to a significant reduction in running costs.
R Treverton-Jones Chairman
Page 2
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2023**
The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 July 2022 to 30 June 2023. 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 Charity 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.
## **Objectives and activities**
## **a. Policies and objectives**
The objectives of the Severn Valley Railway Charitable Trust (SVRCT) are:
1. To advance education for the benefit of the public by financing the acquisition, restoration, preservation and operation of heritage locomotives, coaches, wagons, buildings, track and other associated infrastructure.
2. Establishing buildings to house and preserve the Severn Valley Railway Charitable Trust rolling stock collection.
3. Providing educational and interpretive displays for the travelling public.
4. Providing education and skills training used in the restoration, repair and operation of historic railways to ensure their long-term survival.
In setting the Charity's policy and planning its activities, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.
The Charity has a strong network of volunteers with experience in a range of areas. The Trustees are very appreciative of the support provided by the volunteers as they are essential to allowing the Trust to perform its Charitable activities.
## **b. Strategies for achieving objectives**
Trustees meet quarterly to monitor and assess the affairs of the Charity to ensure the objectives are met.
## **c. Activities undertaken to achieve objectives**
Fund raising and financial affairs of the Charity are monitored and controlled by the Finance & General Purposes Committee which meets regularly as required.
Grant making is controlled by the Grants Committee which manages grant applications to ensure compatibility with the objects
Page 3
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Objectives and activities (continued)**
## **d. Social investment policies**
The social investment of the Charity is met through the objectives, specifically through providing “education and skills training used in the restoration, repair and operation of historic railways to ensure their long-term survival.”
## **e. Grant-making policies**
Grant making policy is set out by the Grants Policy of the Charity. This is freely available via the Charitable Trust website.
Page 4
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Achievements and performance**
## **a. Main achievements of the Charity**
During the period 1 July 2022 - 30 June 2023 the following Grants were made:
|Bridgnorth Yard Phase 1|SVRH|£150,000|
|---|---|---|
|Heritage Apprentice Scheme|SVRH|£35,000|
|Engine House 2022 operational costs:
which houses Hinton Manor|SVRH|£100,000|
||||
|Carriage LNER 43612|SVRH|£70,000|
||||
|Epoxy Floor – Bridgnorth MPD|SVRH|£14,618|
|RoadRailer Vehicle|SVRH|£40,000|
|82045|SVRH|£10,000|
|Engine House 2023 operational costs
(houses Hinton Manor)|SVRH|£200,000|
|Hagley Hall interpretation films|SVRH|£9,624|
|Bridgnorth Yard project films|SVRH|£3,000|
|ESMP Running Maintenance Team
and support for HOPS roll-out.|SVRH|£86,875|
||DMU Group||
|DMU Bogie Overhaul top up funding|(West|£2,000|
||Midlands)||
||||
|Maintaining Heritage|SVRH|£163,000|
||||
||||
||**TOTAL**|**£884,117**|
||||
## **b. Key performance indicators**
The setting of KPIs (Key Performance Indicators) is limited by the nature of charitable fund-raising. Approximately 50% of the income to the Charity is provided through bequests over which the Charity has no control. The remaining income is dependent upon fund-raising campaigns for specific projects. These vary from year-to-year determining the income of the Charity.
Page 5
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Achievements and performance (continued)**
## **c. Review of activities**
Once again, the Charity had a busy year supporting the Severn Valley Railway during a difficult period as the railway began its recovery from the effects of the pandemic.
## **d. Factors relevant to achieve objectives**
Grants applications are managed by the Grants Committee. Their recommendations are put to the Board of Trustees who consider the applications before grants are made. The process is therefore monitored against the objectives of the Charity to ensure compliance.
## **e. Fundraising Policy**
The Severn Valley Railway Charitable Trust Limited raises income from a wide range of funding streams to include, from individuals: single, regular, legacy and gifts in memory. From corporate sponsorship and gift in kind, and project funding from grant-making bodies to include, lottery, statutory, Trusts and foundations.
- The Severn Valley Railway Charitable Trust is a voluntary member of the Information Commissioner's Office, a member of the Fundraising Regulator and the Institute of Fundraising
- The Charity is not aware of any failure by the Charity, or by any person acting on its behalf, to comply with fundraising standards or scheme.
- Fundraising standards are monitored on an ongoing basis by the Director of Development.
- Any complaints received during the year were addressed.
- A safeguarding policy is in place.
- In addition, all fundraising messages are not intrusive and supporters are contacted on an infrequent basis for a mix of messages which include feedback on the impact of their donation and light requests for funding additional projects. Collection pots are not shaken and are static around the Railway. We do not practice telephone fundraising or face to face fundraising. GDPR regulations are adhered to.
Page 6
**SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Achievements and performance (continued)**
## **f. Investment policy and performance**
The Heritage Lottery Fund Catalyst: Endowment Fund and all funds restricted or designated for long-term use are held in a managed fund by Brewin Dolphin.
The Trustees’ aim to achieve a balance between total return primarily through capital growth with a medium risk investment policy over the long term i.e. over a period 10 years or more. They seek to achieve long term growth of capital and income maintaining the value of both in real terms over time. A total return approach should be taken as it is likely that income will be accumulated for some years to establish a substantial Endowment Fund to safeguard the future of the SVR. At that time there may be an increasing income requirement to help to protect the Railway’s rolling stock, bridges, viaducts, buildings, other infrastructure and educational offerings and in so doing safeguard the future of the Railway.
The Trustees, in consultation with the Investment Manager, have agreed the following Investment Strategy: The investment of the funds should follow a total return (excluding inflation) approach; aiming to generate income and capital growth in order to achieve the SVR Endowment Fund objective of growing the income and capital in real terms over time.
Brewin Dolphin have used the WMA Balanced Total Return Index to determine the value of the fund in real terms. It is measured by Brewin Dolphin and reported to the Trustees who review the performance on a regular basis.
Investment income of £37,827 (2022: £27,271) has been generated during the year.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity 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.
## **b. Reserves policy**
The Reserves policy of the Charity is to maintain a level of unrestricted funds, not committed or invested in tangible assets, which will enable the Charity to ensure continuity of activity and have the ability to adjust, in a measured way, to any significant changes in resources. The Reserves policy recognises that reserves are necessary to maintain the day to day operations of the Charity for a period of up to 6 months. This would currently equate to approximately £150,000.
The appropriate measure of free reserves is calculated as unrestricted funds (£321,281), less designated funds (£137,307), less fixed assets attributable to unrestricted funds (£52,391). This equates to free reserves of £131,583. It is recognised that the free reserves are £18,417 below the £150,000 required for day to day operations but plans are in place to build up the free reserves back up by raising unrestricted income.
Page 7
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **c. Risk management**
The Trustees have a duty to identify and review risks to which the Trust is exposed and to ensure appropriate measures are considered for areas of considered risk. The Trust adheres to its Risk Policy and Framework, which is reviewed annually.
A Risk Register is in place, which is reviewed monthly. Identified risks are evaluated on the possible severity, assessing both impact and likelihood. Rather than giving equal weight to likelihood and impact the Trust uses a heat map with greater focus on the impact, and therefore uses the scoring of (impact x likelihood) + impact.
## **d. Principal risks and uncertainties**
The Trustees endeavour to continually raise funds and to further support the Severn Valley Railway. The principal risks associated with the organisational activities are categorised as a loss of income mitigated by implementing strong and targeted marketing and fundraising strategies. Financial fraud and error will be mitigated with robust processes and procedures which incorporate segregation of duties and practises. Lack of fundraising ability is mitigated with a dedicated fundraising team with the correct skills base to deliver a targeted fundraising strategy.
## **e. Financial risk management objectives and policies**
The financial situation of the Charity is carefully monitored by the trustees to ensure continuity. Grants are awarded only when the financial stability of the Charity is confirmed through the Reserves Policy.
## **f. Principal funding**
Funding of the Charity is dependent upon several factors. Approximately 50% of income to the Charity is provided through bequests over which the Charity has no control. The remaining income is dependent upon fund raising campaigns for specific projects. These vary from year-to-year affecting the income to the Charity.
## **Structure, governance and management**
## **a. Constitution**
Severn Valley Railway Charitable Trust Limited, which changed its name from SVR Rolling Stock Trust Company on 29 June 2012, was incorporated and registered as a company limited by guarantee, company registration number 04341280, on 17 December 2001, and was registered with the Charity Commission on 1 July 2002, registration number 1092723. It is governed by its Memorandum and Articles of Association, which were last amended on 8 April 2019.
The Severn Valley Railway Charitable Trust was established to raise funds to ensure the long-term survival of the Severn Valley Railway (SVR).
The day-to-day income the SVR receives from passenger fares, shops, cafes and pubs can only cover the cost of running trains, along with standard maintenance and restoration. These activities do not generate enough income to improve and develop the Railway. The Charitable Trust provides essential funds to enable the Railway to develop and widen its offerings to its visitors.
The Charitable Trust offers tax-efficient ways of giving, and helps ensure the future of this amazing piece of living history, so that it can continue to delight, thrill and inform generations to come.
Page 8
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Structure, governance and management (continued)**
## **b. Methods of appointment or election of Trustees**
There shall be a maximum of nine Trustees unless otherwise determined by ordinary resolution of the members of the Charity. Of the nine Trustees, two shall be ex officio the chairman of each of Severn Valley Railway (Holdings) plc and Severn Valley Railway Company Limited or if any such chairman does not wish to act as Trustee, such other person nominated by such chairman to act as Trustee. Such a Trustee (whether a chairman or his nominee) shall be referred to an "ex officio Trustee". Any person nominated by a chairman to act as a Trustee may from time to time be removed and replaced by their appointor.
The Charity may by ordinary resolution appoint a person who is willing to act to be a director provided that person is not at the time such resolution is passed a director of Severn Valley Railway (Holdings) plc or Severn Valley Railway Limited (but for the avoidance of doubt this proviso shall not apply to ex official directors mentioned above).
Trustees are elected for a three-year period at the AGM by the members of the Trust.
All the Charity Trustees receive an induction into their legal and administrative responsibilities, with an ongoing training programme as and when needed for issues arising during their term of office.
The Trustees are aware of the 7 principles of the Charity Governance Code and continue to improve the Trust’s governance addressing the codes guidelines.
## **c. Organisational structure and decision-making policies**
During the year, several key staff left the Charity. This caused the Trustees to take a greater role in the day-today affairs of the Charity, which has reduced salary costs and provided greater funds for the awarding of grants. Decision making and policy decisions are made by the Trustees.
## **Plans for future periods**
The Charitable Trust has experienced several changes in staff and trustees. Some staff have left the Charity during the year including the Head of Charity, Shelagh Patterson. To reduce overheads the Charity is becoming increasingly reliant upon volunteers, many of whom are Trustees. This has reduced salary costs, improving the ROI (return on Investment) considerably, allowing more funds to become available towards helping the SVR.
The Charity has managed the SVR Survival Appeal during the course of the year.
The policy of the Trustees is now to encourage greater use of contract services for finance and project management, rather than rely on paid staff. This will help reduce costs and provide greater flexibility with the workforce. Volunteers will be engaged when they are available and have the appropriate skills in order to minimise salaries.
At the balance sheet date, the Charity had unrestricted, undesignated reserves of £183,974 (2022: £136,960), designated reserves of £137,307 (2022: £137,307), restricted reserves of £994,220 (2022: £760,301) and endowment funds of £1,374,444 (2022: £1,251,625).
Page 9
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity 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 year. 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 Charity 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 Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
## **Auditor**
The auditor, Crowe U.K. LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
**M A Howard** Secretary Date: 31 July 2024
Page 10
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **Opinion**
We have audited the financial statements of Severn Valley Railway Charitable Trust Limited (the 'charitable company') for the year ended 30 June 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 30 June 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Other matter**
For the year ended 30 June 2022 the company was audit exempt, and consequently the financial statements for that period, which comprise the corresponding information presented in these financial statements, is unaudited.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 11
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 12
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (CONTINUED)**
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified the greatest risk of material impact on the financial statements from irregularities to be within income recognition and the override of control by management, and the Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with Charity Commission and reading minutes of meetings for those charged with governance.
Owing to the inherent risk of an audit, there is an unavoidable risk that we may not have detected some material misstatemetns in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**Kerry Brown Crowe U.K. LLP** Senior Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG
31 July 2024
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 13
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023**
|**Note**
**Income and**
**endowments from:**
Donations and legacies
4
Investments
5
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
6,7
Charitable activities
8
**Total expenditure**
**Net**
**income/(expenditure)**
**before net**
**gains/(losses) on**
**investments**
Net gains/(losses) on
investments
**Net movement in**
**funds**
**Reconciliation of**
**funds:**
Total funds brought
forward
Net movement in funds
**Total funds carried**
**forward**|**Unrestricted**
**funds**
**2023**
**£**
**607,018**
**5,025**
**612,043**
**123,899**
**451,428**
**575,327**
**36,716**
**10,298**
**47,014**
**274,267**
**47,014**
**321,281**|**Restricted**
**funds**
**2023**
**£**
**916,509**
**3,447**
**919,956**
**14,370**
**682,075**
**696,445**
**223,511**
**10,408**
**233,919**
**760,301**
**233,919**
**994,220**|**Endowment**
**funds**
**2023**
**£**
**13,649**
**30,789**
**44,438**
**9,403**
**-**
**9,403**
**35,035**
**87,784**
**122,819**
**1,251,625**
**122,819**
**1,374,444**|**Total**
**funds**
**2023**
**£**
**1,537,176**
**39,261**
**1,576,437**
**147,672**
**1,133,503**
**1,281,175**
**295,262**
**108,490**
**403,752**
**2,286,193**
**403,752**
**2,689,945**|_Total_
_funds_
_2022_
_£_
_828,893_
_27,421_
_856,314_
_156,167_
_1,224,345_
_1,380,512_
_(524,198)_
_(204,771)_
_(728,969)_
_3,015,162_
_(728,969)_
_2,286,193_|
|---|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 18 to 39 form part of these financial statements.
Page 14
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04341280**
## **BALANCE SHEET AS AT 30 JUNE 2023**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Endowment funds
20
Restricted funds
20
Unrestricted funds
20
**Total funds**|**11,973**
**98,314**
**663,290**
**773,577**
**(32,892)**|**2023**
**£**
**52,391**
**1,896,869**
**1,949,260**
**740,685**
**2,689,945**
**2,689,945**
**2,689,945**
**1,374,444**
**994,220**
**321,281**
**2,689,945**|_11,973_
_27,206_
_554,796_
_593,975_
_(43,646)_|_2022_
_£_
_68,158_
_1,667,706_|
|---|---|---|---|---|
|||||_1,735,864_
_550,329_|
|||||_2,286,193_|
|||||_2,286,193_|
||||||
|||||_2,286,193_|
|||||_1,251,625_
_760,301_
_274,267_|
||||||
|||||_2,286,193_|
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 15
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
**(A company limited by guarantee) REGISTERED NUMBER: 04341280**
**BALANCE SHEET (CONTINUED) AS AT 30 JUNE 2023**
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:
**M A Howard** Secretary Date: 31 July 2024
The notes on pages 18 to 39 form part of these financial statements.
Page 16
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
**Net cash (used in)/provided by investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2023**
**£**
**189,907**
**39,261**
**725,754**
**(876,690)**
**(111,675)**
**78,232**
**613,024**
**691,256**|_2022_
_£_
_(543,012)_
_27,421_
_208,088_
_(231,530)_
**3,979**
**(539,033)**
_1,152,057_
_613,024_|
|---|---|---|
The notes on pages 18 to 39 form part of these financial statements
Page 17
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **1. General information**
The Severn Valley Railway Charitable Trust is a company limited by guarantee in England, whose registered office is Number One, Comberton Place, Kidderminster, Worcestershire, DY10 1QR. The companies registered number is 04341280. The members of the company are the Trustees named on page 1. In the event of the Severn Valley Railway Charitable Trust Limited being wound up, the liability in respect of the guarantee is limited to £1 per member of the Severn Valley Railway Charitable Trust Limited.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Severn Valley Railway Chartitable Trust Limited 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 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
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.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 18
**SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **2. Accounting policies (continued)**
## **2.3 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. Expenditure is classified 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 to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with 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’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.4 Tangible fixed assets and depreciation**
Tangible fixed assets costing £264,366 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|Rolling Stock|-|10% Straight Line|
|---|---|---|
|Artefacts|-|10% Straight Line|
|Office equipment|-|33% Straight Line|
## **2.5 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investments held as fixed assets are shown at cost less provision for impairment.
Page 19
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **2. Accounting policies (continued)**
## **2.6 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.7 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.8 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.
## **2.9 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 Charity 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 in the Statement of financial activities as a finance cost.
## **2.10 Financial instruments**
The Charity 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 20
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **2. Accounting policies (continued)**
## **2.11 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 Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity 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.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical areas of judgment:
Valuation of the rolling stock which is based on past experience and expert knowledge.
## **4. Income from donations and legacies**
|**Unrestricted**
**funds**
**2023**
**£**
**Donations**
Donations
149,742
Gift Aid Reclaimable
15,313
**Subtotal detailed disclosure**
165,055|**Restricted**
**funds**
**2023**
**£**
517,283
69,339
586,622|**Endowment**
**funds**
**2023**
**£**
11,654
1,995
13,649|**Total**
**funds**
**2023**
**£**
**678,679**
**86,647**|
|---|---|---|---|
||||**765,326**|
Page 21
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **4. Income from donations and legacies (continued)**
|**Unrestricted**
**funds**
**2023**
**£**
Legacies
440,295
Grants
-
Other income
1,668
**Subtotal**
441,963
607,018
_Unrestricted_
_funds_
_2022_
_£_
**Donations**
Donations
_153,953_
Gift Aid Reclaimable
_20,776_
**Subtotal detailed disclosure**
_174,729_
Legacies
_42,415_
Grants
_-_
Other income
_8,112_
**Subtotal**
_50,527_
_225,256_|**Restricted**
**funds**
**2023**
**£**
168,950
160,937
-
329,887
916,509
_Restricted_
_funds_
_2022_
_£_
_208,599_
_33,761_
_242,360_
_136,000_
_201,969_
_-_
_337,969_
_580,329_|**Endowment**
**funds**
**2023**
**£**
-
-
-
-
13,649
_Endowment_
_funds_
_2022_
_£_
_2,624_
_684_
_3,308_
_20,000_
_-_
_-_
_20,000_
_23,308_|**Total**
**funds**
**2023**
**£**
**609,245**
**160,937**
**1,668**|
|---|---|---|---|
||||**771,850**|
|||||
||||**1,537,176**|
||||_Total_
_funds_
_2022_
_£_
_365,176_
_55,221_|
||||_420,397_|
||||_198,415_
_201,969_
_8,112_|
||||_408,496_|
|||||
||||_828,893_|
Page 22
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **5. Investment income**
|**Unrestricted**
**funds**
**2023**
**£**
Dividend income
3,591
Interest receivable
1,434
5,025
_Unrestricted_
_funds_
_2022_
_£_
Dividend income
_2,925_
Interest receivable
_150_
_Total 2022_
_3,075_|**Restricted**
**funds**
**2023**
**£**
3,447
-
3,447
_Restricted_
_funds_
_2022_
_£_
_99_
_-_
_99_|**Endowment**
**funds**
**2023**
**£**
30,789
-
30,789
_Endowment_
_funds_
_2022_
_£_
_24,247_
_-_
_24,247_|**Total**
**funds**
**2023**
**£**
**37,827**
**1,434**|
|---|---|---|---|
||||**39,261**|
||||_Total_
_funds_
_2022_
_£_
_27,271_
_150_|
||||_27,421_|
## **6. Expenditure on raising funds Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2023**
**£**
Fundraising costs
8,093
Support costs
52,167
Depreciation
928
Wages and salaries
48,140
National Insurance
5,143
Pension costs
8,325
122,796|**Restricted**
**funds**
**2023**
**£**
13,255
-
-
-
-
-
13,255|**Total**
**funds**
**2023**
**£**
**21,348**
**52,167**
**928**
**48,140**
**5,143**
**8,325**|
|---|---|---|
|||**136,051**|
Page 23
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **6. Expenditure on raising funds (continued)**
## **Costs of raising voluntary income (continued)**
|Fundraising costs
Support costs
Depreciation
Wages and salaries|_Unrestricted_
_funds_
_2022_
_£_
_11,237_
_36,354_
_217_
_95,000_
_142,808_|_Restricted_
_funds_
_2022_
_£_
_4,274_
_-_
_-_
_-_
_4,274_|_Total_
_funds_
_2022_
_£_
_15,511_
_36,354_
_217_
_95,000_|
|---|---|---|---|
||||_147,082_|
## **7. Investment management costs**
|**Unrestricted**
**funds**
**2023**
**£**
Investment managers costs
1,103
_Unrestricted_
_funds_
_2022_
_£_
Investment managers costs
_974_|**Restricted**
**funds**
**2023**
**£**
1,115
_Restricted_
_funds_
_2022_
_£_
_33_|**Endowment**
**funds**
**2023**
**£**
9,403
_Endowment_
_funds_
_2022_
_£_
_8,078_|**Total**
**funds**
**2023**
**£**
**11,621**|
|---|---|---|---|
||||_Total_
_funds_
_2022_
_£_
_9,085_|
Page 24
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2023**
**£**
Wages and Salaries
109,099
Governance costs
18,345
Depreciation
15,758
Railway Restoration
308,226
451,428
_Unrestricted_
_funds_
_2022_
_£_
Wages and Salaries
_147,920_
Governance costs
_1,770_
Depreciation
_22,758_
Railway Restoration
_320,363_
Engineering academy and education
_-_
_492,811_|**Restricted**
**funds**
**2023**
**£**
-
-
-
682,075
682,075
_Restricted_
_funds_
_2022_
_£_
_-_
_-_
_-_
_730,934_
_600_
_731,534_|**Total**
**2023**
**£**
**109,099**
**18,345**
**15,758**
**990,301**|
|---|---|---|
|||**1,133,503**|
|||_Total_
_2022_
_£_
_147,920_
_1,770_
_22,758_
_1,051,297_
_600_|
|||_1,224,345_|
Page 25
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **9. Analysis of expenditure by activities**
|**Activities**
**undertaken**
**directly**
**2023**
**£**
Wages and Salaries
9,092
Governance costs
791
Depreciation
15,758
Railway Restoration
990,301
1,015,942
_Activities_
_undertaken_
_directly_
_2022_
_£_
Wages and Salaries
_40,758_
Governance costs
_-_
Depreciation
_22,758_
Railway Restoration
_1,051,297_
Engineeing Academy and Restoration
_600_
_1,115,413_
**10.**
**Analysis of grants**
**Included within Railway Restoration are the following grants**
Severn Valley Railway (Holdings)
DMU Group (West Midlands)|**Support**
**costs**
**2023**
**£**
100,007
17,554
-
-
117,561
_Support_
_costs_
_2022_
_£_
_107,162_
_1,770_
_-_
_-_
_-_
_108,932_
**2023**
**£**
**882,117**
**2,000**
**884,117**|**Total**
**funds**
**2023**
**£**
**109,099**
**18,345**
**15,758**
**990,301**|
|---|---|---|
|||**1,133,503**|
|||_Total_
_funds_
_2022_
_£_
_147,920_
_1,770_
_22,758_
_1,051,297_
_600_|
|||_1,224,345_|
|||_2022_
_£_
_1,044,672_
_-_|
|||_1,044,672_|
Page 26
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **11. Auditor's remuneration**
||**2023**|_2022_|
|---|---|---|
||**£**|_£_|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**11,000**|_-_|
|Fees payable to the Charity's auditor in respect of:|||
|The Charity's independent examination|**-**|_1,740_|
|Preparation of the annual accounts|**5,750**|_-_|
## **12. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2023**
**£**
**147,618**
**13,751**
**9,338**
**170,707**|_2022_
_£_
_210,246_
_13,105_
_19,569_|
|---|---|---|
||||
|||_242,920_|
The average number of persons employed by the Charity during the year was as follows:
|**2023**|_2022_|
|---|---|
|**5**|_8_|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2023**|_2022_|
|---|---|---|---|
|||**No.**|_No._|
|In the band £60,001|- £70,000|**-**|_1_|
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2022 - £NIL)_ .
During the year ended 30 June 2023, no Trustee expenses have been incurred _(2022 - £NIL)_ .
Page 27
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **14. Tangible fixed assets**
|**Cost or valuation**
At 1 July 2022
Additions
Disposals
At 30 June 2023
**Depreciation**
At 1 July 2022
Charge for the year
On disposals
At 30 June 2023
**Net book value**
At 30 June 2023
_At 30 June 2022_|**Rolling**
**Stock**
**£**
**259,450**
**-**
**-**
**259,450**
**192,005**
**15,667**
**-**
**207,672**
**51,778**
_67,445_|**Artefacts**
**£**
**3,445**
**-**
**-**
**3,445**
**3,358**
**87**
**-**
**3,445**
**-**
_87_|**Office**
**equipment**
**£**
**4,592**
**915**
**(4,036)**
**1,471**
**3,966**
**928**
**(4,036)**
**858**
**613**
_626_|**Total**
**£**
**267,487**
**915**
**(4,036)**
**264,366**
**199,329**
**16,682**
**(4,036)**
**211,975**
**52,391**
_68,158_|
|---|---|---|---|---|
Page 28
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **15. Fixed asset investments**
|**Cost or valuation**
At 1 July 2022
Additions
Disposals
Revaluations
Transfers between classes
At 30 June 2023
**Net book value**
At 30 June 2023
_At 30 June 2022_
Investments at market value comprise:|**Listed**
**investments**
**£**
**1,643,270**
**1,008,990**
**(737,375)**
**108,490**
**(150,941)**
**1,872,434**
**1,872,434**
_1,643,270_|**Other fixed**
**asset**
**investments**
**£**
**24,435**
**-**
**-**
**-**
**-**
**24,435**
**24,435**
_24,435_|**Total**
**£**
**1,667,705**
**1,008,990**
**(737,375)**
**108,490**
**(150,941)**
**1,896,869**
**1,896,869**
_1,667,705_|
|---|---|---|---|
UK Listed investments: £1,872,434 (2022: £1,643,271) Market value of shares held in SVR (Holdings) Plc: £24,435 (2022: £24,435)
All fixed asset investments are held in the UK.
The endowment fund has been invested on a total return basis. Currently, there are no unapplied total returns as all income generated is to be re invested in the fund. During the year, donations of £97,677 (2022: £29,683) have been invested. This amount has been transferred into the Broker account for Brewin Dolphin to invest in line with the investment policy. Investment income of £34,618 (2022: £27,271) has been generated during the year which remains within the endowment fund.
During the year NIL (2022: £NIL) from unrestricted funds and NIL (2022: £NIL) from restricted funds have been invested with Brewin Dolphin alongside the total return endowment funds. The total income and capital gains generated during the year have been apportioned between funds based on the proportion of restricted, unrestricted and endowment funds invested with Brewin Dolphin at the point of each new cash injection.
Page 29
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **16. Stocks**
|Parts
**17.**
**Debtors**
**Due within one year**
Other debtors
Prepayments and accrued income|**2023**
**£**
**11,973**
**2023**
**£**
**96,549**
**1,765**
**98,314**|_2022_
_£_
_11,973_|
|---|---|---|
|||_2022_
_£_
_25,587_
_1,619_|
||||
|||_27,206_|
## **18. Creditors: Amounts falling due within one year**
|Other taxation and social security
Other creditors
Accruals and deferred income
**19.**
**Financial instruments**
**Financial assets**
Financial assets measured at fair value through income and expenditure|**2023**
**£**
**2,642**
**7,465**
**22,785**
**32,892**
**2023**
**£**
**1,896,869**|_2022_
_£_
_4,718_
_1,845_
_37,083_|
|---|---|---|
||||
|||_43,646_|
|||_2022_
_£_
_1,667,706_|
Financial assets measured at fair value through income and expenditure comprise of listed investments and shares in SVR (Holdings) Plc.
Page 30
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **20. Statement of funds**
**Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Futures fund
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Endowment funds**
Heritage Lottery Fund Catalyst:
Endowment fund
**Restricted funds**
Roof and Crane
HLF Catalyst Restricted Fund
Hinton Manor 7819
Hagley Hall 4930
Diesel Facility
Engineering Academy
Bridgnorth Station Restoration
Fund
Bridgnorth Turntable Fund
Bridgnorth Yard Fund
Falling Sands Viaduct
GWR Buffet 9581
Emergency Appeal
SVRCT Roof & Housing
Road Railer
Survival Fund
Miscellanous restricted funds|**Balance at 1**
**July 2022**
**£**
**137,307**
**136,960**
**274,267**
**1,251,625**
**12,775**
**404,964**
**20,357**
**41,838**
**31,436**
**418**
**2,879**
**18,209**
**64,248**
**37,210**
**13,281**
**628**
**100,000**
**-**
**-**
**12,058**|**Income**
**£**
**-**
**612,043**
**612,043**
**44,438**
**14,081**
**103,124**
**433**
**5,456**
**2,438**
**51,533**
**2,873**
**-**
**196,998**
**69,221**
**7,650**
**6,445**
**70,000**
**20,000**
**362,947**
**6,757**|**Expenditure**
**£**
**-**
**(575,327)**
**(575,327)**
**(9,403)**
**(18,401)**
**(1,115)**
**-**
**(10,324)**
**-**
**(35,000)**
**-**
**-**
**(162,502)**
**(104,748)**
**-**
**-**
**(170,000)**
**(20,000)**
**(174,355)**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**10,298**
**10,298**
**87,784**
**-**
**10,408**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Balance at**
**30 June**
**2023**
**£**
**137,307**|
|---|---|---|---|---|---|
||||||**183,974**|
||||||**321,281**|
||||||**1,374,444**|
||||||**8,455**
**517,381**
**20,790**
**36,970**
**33,874**
**16,951**
**5,752**
**18,209**
**98,744**
**1,683**
**20,931**
**7,073**
**-**
**-**
**188,592**
**18,815**|
Page 31
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **20. Statement of funds (continued) Statement of funds - current year (continued)**
|**Total of funds**|**Balance at 1**
**July 2022**
**£**
**760,301**
**2,286,193**|**Income**
**£**
**919,956**
**1,576,437**|**Expenditure**
**£**
**(696,445)**
**(1,281,175)**|**Gains/**
**(Losses)**
**£**
**10,408**
**108,490**|**Balance at**
**30 June**
**2023**
**£**|
|---|---|---|---|---|---|
||||||**994,220**|
||||||**2,689,945**|
Page 32
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **20. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Futures fund
**General funds**
General fund - all funds
**Total Unrestricted funds**
**Endowment funds**
Heritage Lottery Fund Catalyst:
Endowments fund
**Restricted funds**
Roof and Crane
HLF Catalyst Restricted Fund
Hinton Manor 7819
Mark 1 TSO 4509
LMS & BR Coach Department
LNER Coach 52255 & Dept.
Hagley Hall 4930
Diesel Facility
Engineering Academy
Toad A Brake Van 17410
Bridgnorth Station restoration
Fund
Bridgnorth Turntable fund
Bridgnorth Yard Fund
Disable Dining & Travel
Facilities Fund
Eardington Holt
Falling Sands Viaduct|_Balance at_
_1 July 2021_
_£_
_154,820_
_524,683_
_679,503_
_1,417,516_
_275,224_
_382,456_
_19,989_
_2,791_
_19,188_
_2,095_
_38,530_
_28,720_
_41,943_
_3,075_
_16,105_
_18,209_
_-_
_264_
_-_
_48,868_|_Income_
_£_
_5,425_
_222,905_
_228,330_
_24,247_
_220,393_
_23,287_
_368_
_-_
_-_
_1,255_
_16,208_
_4,396_
_85,849_
_-_
_5,409_
_-_
_65,615_
_125_
_138_
_36,269_|_Expenditure_
_£_
_(974)_
_(610,628)_
_(611,602)_
_(8,078)_
_(482,842)_
_(33)_
_-_
_-_
_(15,961)_
_(2,074)_
_(12,900)_
_(1,680)_
_(127,374)_
_-_
_(18,635)_
_-_
_(1,367)_
_-_
_-_
_(47,927)_|_Gains/_
_(Losses)_
_£_
_(21,964)_
_-_
_(21,964)_
_(182,060)_
_-_
_(746)_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|_Balance at_
_30 June_
_2022_
_£_
_137,307_|
|---|---|---|---|---|---|
||||||_136,960_|
||||||_274,267_|
||||||_1,251,625_|
||||||_12,775_
_404,964_
_20,357_
_2,791_
_3,227_
_1,276_
_41,838_
_31,436_
_418_
_3,075_
_2,879_
_18,209_
_64,248_
_389_
_138_
_37,210_|
Page 33
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **20. Statement of funds (continued)**
## **Statement of funds - prior year (continued)**
|Education Fund
GWR Buffet 9571
GWR Restoration Fund
Emergency Appeal
Bewdley Signal & Wheelchair
SWCT Roof & Housing
**Total of funds**|_Balance at_
_1 July 2021_
_£_
_600_
_2,518_
_807_
_10,236_
_6,520_
_-_
_918,138_
_3,015,157_|_Income_
_£_
_-_
_10,763_
_50_
_29,730_
_3,880_
_100,000_
_603,735_
_856,312_|_Expenditure_
_£_
_(600)_
_-_
_(795)_
_(39,338)_
_(9,300)_
_-_
_(760,826)_
_(1,380,506)_|_Gains/_
_(Losses)_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_(746)_
_(204,770)_|_Balance at_
_30 June_
_2022_
_£_
_-_
_13,281_
_62_
_628_
_1,100_
_100,000_|
|---|---|---|---|---|---|
||||||_760,301_|
||||||_2,286,193_|
## **21. Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Endowment funds
Restricted funds|**Balance at 1**
**July 2022**
**£**
**137,307**
**136,960**
**1,251,625**
**760,301**
**2,286,193**|**Income**
**£**
**-**
**612,043**
**44,438**
**919,956**
**1,576,437**|**Expenditure**
**£**
**-**
**(575,327)**
**(9,403)**
**(696,445)**
**(1,281,175)**|**Gains/**
**(Losses)**
**£**
**-**
**10,298**
**87,784**
**10,408**
**108,490**|**Balance at**
**30 June**
**2023**
**£**
**137,307**
**183,974**
**1,374,444**
**994,220**|
|---|---|---|---|---|---|
||||||**2,689,945**|
Page 34
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **21. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds
Endowment funds
Restricted funds|_Balance at_
_1 July 2021_
_£_
_154,820_
_524,683_
_1,417,516_
_918,138_
_3,015,157_|_Income_
_£_
_5,425_
_222,905_
_24,247_
_603,735_
_856,312_|_Expenditure_
_£_
_(974)_
_(610,628)_
_(8,078)_
_(760,826)_
_(1,380,506)_|_Gains/_
_(Losses)_
_£_
_(21,964)_
_-_
_(182,060)_
_(746)_
_(204,770)_|_Balance at_
_30 June_
_2022_
_£_
_137,307_
_136,960_
_1,251,625_
_760,301_|
|---|---|---|---|---|---|
||||||_2,286,193_|
Page 35
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **21. Summary of funds (continued)**
|Futures Fund|This is a designated fund for the purpose of providing alternative source of funding for the
SVR Charitable Trust in the years to come. This means the trust does not have to rely on new
fundraisingfor everysingle project.|
|---|---|
|HLF Catalyst Endow ment Fund|This is an endow ment fund for the purpose of creating future income for the Trust for the
continuance of its activities. Monies raised w ere match funded by Heritage Lottery Fund
(HLF) up to a maximum of £500,000 w hich has been reached.|
|Roof and Crane Fund|This restricted fund is to fund a much-needed replacement to the engine shed at Bridgnorth.
The second objective is the purchase and installation of a crane, w hich w ill facilitate much
more efficient and safe w orks on the heritage rollingstock.|
|HLF Catalyst Restricted Fund|This is a restricted fund for the purposes of creating future income ("Futures Fund") for the
Trust for the continuance of its activities since the end of the matching funding arrangement
w ith HLF.
Dividends received on the investments held by Brew in Dolphin are recognised here, w ith the
funds being restricted for the purpose of preserving Severn Valley Railw ay Rolling Stock.|
|Hinton Manor 7819 Fund|This is a restricted fund for the purpose of returning the locomotive to service.|
|Hagley Hall Fund|This is a restricted fund for the purpose of restoring the locomotive 4930 Hagley Hall to
service.|
|Diesel Facility Fund|This is a restricted fund to support Diesel activities of the SVR.|
|Engineering Academy Fund|This is a restricted fund for the purpose of providing heritage skills to the SVR.|
|Bridgnorth Station Restoration Fund|This is a restricted fund for the purpose of restoring the station.|
|Bridgnorth Turntable Fund|This is a restricted fund for the purpose of restoring the turntable at Bridgnorth|
|Bridgnorth Locomotive Yard Fund|This is a restricted fund for the purpose of repairing the yard.|
|Falling Sands Viaduct Fund|This is a restricted fund for the purpose of the restoration of the viaduct and educational
offering.|
|GWR9581 Wheelchair Access Buffet
Carriage Fund|This is a restricted fund to convert carriage 9581, into w heelchair-user-access buffet
carriage.|
|Emergency Appeal Fund|This is a restricted fund in place to raise funds for immediate application to areas of the SVR’s
activities w hich met the charitable objects. The funds w ere to compensate for lost income
due to COVID-19.|
|SVRCT Roof & Housing|This is a restricted fund to support and maintain provision of buildings to house and preserve
SVRCT ow ned rollingstock.|
|Road Railer Fund|This is a restricted fund for the purpose of purchasing a Road Railer vehicle to support the
maintenance of the railw ay's infrastructure.|
|Survival Fund|This is a restricted fund to restore the railw ay's position follow ing the Covid Pandemic.|
|Bew dley Signal & Wheelchair|These are restricted funds for the purposes of replacing the main post of the larger Bew dley
South Bracket Signal and replacing the w heelchair access for visitors at Bew dley Station.|
|Disabled Dining & Travel Facilities Fund|This is a restricted fund for the purpose of providing dining facilities for w heelchair
passengers.|
|Educational Fund|This is a restricted fund to educate the public.|
|LMS & BR Coach Department Fund|This is a restricted fund for the purpose of restoring LMS & BR built department vehicles to
original condition.|
|LNER Coach Department Fund|This is a restricted fund for the purpose of restoring LNER built vehicles to original condition|
|LNER Coach 52255|This is a restricted fund for the purpose of improving LNER coach 52255.|
|Mark 1 TSO 4509|This is a restricted fund for the purpose of completion of restoration.|
|Toad A Brake Van 17410 Fund|This is a restricted fund for the purpose of restoring the vehicle to service.|
Page 36
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **22. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2023**
**£**
Tangible fixed assets
52,391
Fixed asset investments
173,598
Current assets
128,184
Creditors due within one year
(32,892)
**Total**
321,281|**Restricted**
**funds**
**2023**
**£**
-
365,255
628,965
-
994,220|**Endowment**
**funds**
**2023**
**£**
-
1,358,016
16,428
-
1,374,444|**Total**
**funds**
**2023**
**£**
**52,391**
**1,896,869**
**773,577**
**(32,892)**
**2,689,945**|
|---|---|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2022_
_£_
_68,158_
_161,117_
_65,164_
_(20,172)_
_274,267_|_Restricted_
_funds_
_2022_
_£_
_-_
_254,964_
_528,811_
_(23,474)_
_760,301_|_Endowment_
_funds_
_2022_
_£_
_-_
_1,251,625_
_-_
_-_
_1,251,625_|_Total_
_funds_
_2022_
_£_
_68,158_
_1,667,706_
_593,975_
_(43,646)_
_2,286,193_|
|---|---|---|---|---|
Page 37
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **23. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the year (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Decrease in creditors
**Net cash provided by/(used in) operating activities**
**24.**
**Analysis of cash and cash equivalents**
Cash in hand
Cash held by broker
**Total cash and cash equivalents**
**25.**
**Analysis of changes in net debt**
Cash at bank and in hand|of Financial
**At 1 July**
**2022**
**£**
**554,796**
**554,796**|**2023**
**£**
**403,752**
**15,758**
**(108,490)**
**(39,261)**
**(71,098)**
**(10,754)**
**189,907**
**2023**
**£**
**663,290**
**27,966**
**691,256**
**Cash flows**
**£**
**108,494**
**108,494**|_2022_
_£_
_(728,969)_
_22,978_
_204,770_
_(27,421)_
_31,434_
_(45,809)_
_(543,017)_
_2022_
_£_
_554,796_
_58,228_
_613,024_
**At 30 June**
**2023**
**£**
**663,290**
**663,290**|
|---|---|---|---|
## **26. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to these funds.
Page 38
## **SEVERN VALLEY RAILWAY CHARITABLE TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023**
## **27. Related party transactions**
During the year the Charity donated £965,120 (2022: £1,044,672) to Severn Valley Railway (Holdings) Plc. In addition to this, invoiced recharges of £136,050 (2022: £169,423) were also paid to Severn Valley Railway (Holdings) Plc.
During the year, Severn Valley Railway (Holdings) Plc collected donations totalling £191,534 on behalf od the Charity.
Included with creditors is an amount of £11,998 (2022: £32,788) owed to Severn Valley Railway (Holdings) Plc which relates to recharges. Included within debtors is an amount of £16,932 (2022: £nil) owed from Severn Valley Railway (Holdings) Plc for donations collected on behald of the Charity.
Donations totalling £6,685 were made by 8 Trustees of the charity.
There are no other related party transactions.
Page 39