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2020-12-31-accounts

RHYL STEAM PRESERVATION TRUST

ACCOUNTS FOR YEAR ENDED 31st DECEMBER 2020

Charity Registration No. 1103953

RHYL STEAM PRESERVATION TRUST

CONTENTS YEAR ENDED 31st DECEMBER 2020

Trustees' Report 1 - 5 Independent Examiner's Report 6 Statement of Accounts 7 - 13

RHYL STEAM PRESERVATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

LEGAL AND ADMINISTRATIVE INFORMATION

Charity Registration No. 1103953
Accredited Museum No. 2263
Operational Address Central Station
Marine Lake
Wellington Road
Rhyl
LL18 1AQ
Adminstrative Office 10 Cilnant
Mold
Flintshire
CH7 1GG
Trustees Leslie Hughes Chairman
Simon T Townsend LLB Secretary
Carol Hughes
Cllr Joan Butterfield JP Resigned on 23rd June 2021
Justin D Bell
Lucille Green
Louise Webster
Independent Examiners DSG
Unit 5 Evolution House
Lakeside Business Park
St David's Park Estate
Ewloe
Flintshire CH5 3XP
Bankers Lloyds Bank Plc
22 Mostyn Street
Llandudno
Gwynedd
LL30 2RU

1

RHYL STEAM PRESERVATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020 (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document and Charitable Status

The Trust's governing document is its Trust Deed dated 18th July 2000. Charitable status was granted on 26th May 2004.

Recruitment and Appointment of Trustees

Trustees with appropriate skills are appointed by the existing Trustee body. Trustees reaffirm annually that they wish to continue to hold office. Where no reaffirmation is received this is taken to mean that they wish to resign. The Trustees have resolved that ownership of some locomotives and stock shall revert to the Hughes family in the event that the Trust should ever be wound up.

Trustee Induction and Training

Prospective Trustees are asked to review the Charity Commission's leaflet CC3 concerning the responsibilities of Charity Trustees. The present Trustees have wide experience within business, local government and the professions.

Risk Management

The Trustees have reviewed the major risks faced by the charity. Railway operating risks have been analysed in a risk assessment document and are covered by the Trust's public liability insurance policy for claims of up to £5,000,000.

The Trust's building 'Central Station' opened to the public in May 2007. The financial risks facing the Trust now arise from maintainance and operation costs of its infrastructure. The Trustees continue to monitor these risks and to offset them wherever possible.

Organisational Structure

Most day to day financial activities of the Trust are managed by its Secretary, with frequent input from other Trustees and from members of the support organisation 'Friends of Rhyl Miniature Railway'. The Trustees aim to meet formally three or four times a year, to decide upon the strategic direction of the Trust.

Related Parties

Joan Butterfield JP is an elected Councillor of Denbighshire County Council and Rhyl Town Council. The Trust leases land from Denbighshire County Council. The Trust has received grants from Rhyl Town Council. Councillor Butterfield's links within the local community have been invaluable to the Trust.

A Trustee has made a loan to the Trust, totalling to date £39 (2019: £1,957) . No interest is charged and there are no terms for repayment.

OBJECTIVES AND ACTIVITES

Objects

The Trust's objects are:

To preserve and operate the historic miniature steam trains on the Rhyl Miniature Railway, at Marine Lake in the County of Denbighshire, for the benefit and education of future generations.

Public Benefit

The Trustees are confident that the charitable aims of the Trust satisfy the principles of public benefit as defined in the Charities Act 2011.

2

RHYL STEAM PRESERVATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020 (CONTINUED)

Public Benefit (continued)

The Trustees ensure that nobody is excluded from the benefits of the Trust's activities. This is achieved by low fares for train rides, and free admission to the Trust's other facilities. We also provide access to our building and to train rides consistent with the Equality Act.

ACHIEVEMENTS AND PERFORMANCE

Mission Statement

The Trust's mission statement is:

To advance education of the public about the history of Rhyl Miniature Railway, through the continued operation of heritage steam trains, and in the context of

To achieve this through promoting greater access to our collection, that involves adults, children, families and schools of all cultures, genders and abilities.

Railway Operations 2020

2020 will be remembered for when the railway did not open as well as when it did. Restrictions caused by the coronavirus meant that the operating season was confined to two weekends in July, 28 out of 31 days in August and then weekends in September. During August the railway still carried 11,200 passengers, which was both commendable and unexpected.

Almost all of our passengers this year travelled in enclosed coaches remaining in their own group. Around the station we had a one way system together with hand sanatisers and facilities to register attendance for NHS Test and Trace.

More disruption to the programme followed with the 2020 Santa trains. We found a way to operate the trains whilst maintaining distancing between passenger groups. We took bookings to run every train full for eight days, but we were beaten by worsening figures for the coronavirus, which meant greater restrictions and in turn led to the final six days' trains having to be cancelled.

The railway continues to benefit from the support of volunteers from the 'Friends of Rhyl Miniature Railway'. The Trust's three part time staff were employed as usual between Easter and September. During the summer one of the longstanding volunteers died and for this and other reasons the number of personnel left running the railway was very few.

We ended 2020 with only two of our steam locomotives in operation. The repaired boiler from loco Joan was returned to us on December 31st. Our Cagney loco has spent the year under overhaul, whillst loco Michael now needs repairs to its boiler before it can be steamed again. The new enclosed guard / wheelchair coach has been completed and was used on all the 2020 trains. A lot more time has been spent on replacing rotten sleepers in the railway track.

Museum Matters

Conservation work on the Trust's collection of locomotive drawings was carried out for us during the Autumn at Caernarfon Record Office, and the drawings will shortly be deposited at Denbighshire Archives for safe keeping. Although the work was delayed, the project's main funder the National Manuscripts Conservation Trust were so pleased that they told us that the project will be used amongst the case studies to guide future grant applicants.

3

RHYL STEAM PRESERVATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020 (CONTINUED)

FINANCIAL REVIEW

Review of the Year

Like all heritage railways the Trust incurs a lot of up front annual costs, such as insurance, whether the trains operate or not. As our employees are all paid less than they are worth, we took the view that they should be paid in any case from when the railway had been due to be open, even though the costs would not be covered by the HMRC furlough scheme.

Matter improved when in May we received a grant of £10,000, Resilience funding, funded by Welsh Government through the Museums, Archives and Libraries Division, and the Federation of Museums and Art Galleries of Wales. In June we received a further £10,000 from the Welsh Government, followed in July by a further £9,000 from the WG / Federation Resilience fund. These grants were important money, because they paid our costs during closure, including payroll costs, but they also enabled our two expensive locomotive engineering projects to continue unchanged.

Once we did reopen to the public customer demand proved to be high, which also helped us financially. Shop sales of equipment for 'crabbing' showed still further growth during 2020; the quantities sold had to be seen to be believed.

In December 2020 cancellation of 6 days of Santa trains caused the Trust to have to return bookings to customers totalling £8,750. Had this not happened our closing bank balance and reserves would have been very similar to those at the end of 2019.

Reserves policy

Many of the railway's annual costs (including insurance, inspection and publicity) are incurred before the beginning of each operating season. The policy of the Trust is to build up sufficient reserves to enable at least these costs to be borne each year without the use of borrowing. The Trustees intend to take every future opportunity to increase unrestricted reserves.

Unrestricted reserves of the Trust at 31st December 2020 amounted to £180,993. Bank balances totalled £46,846. Although reserves carried forward at 2020 are less than a year ago the closing committed capital expenditure is also a great deal less, meaning that overall the closing position is satisfactory.

PLANS FOR FUTURE PERIODS

There was a very small team running the railway during 2020, and clearly for a sustainable future the available pool of skilled time needs to be increased.

The Trust's five year plan has identified a need for better volunteer facilities and for storage areas inside 'Central Station' which are bigger and more easily accessible. The Trustees intend to discuss these issues further, but our short term priorities have been maintaining our railway equipment and on resilience during the period of the virus.

Cllr Joan Butterfield resigned as a Trustee on 23rd June 2021. The remaining Trustees passed a resolution expressing thanks for all she had done for the Trust.

COVID-19

The consequences for the Trust of Covid 19 during 2020 are discussed in the report above.

It is expected that the 2021 season will again be subject to uncertainty due to the prevailing regulations caused by Covid 19.

4

RHYL STEAM PRESERVATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020 (CONTINUED)

INDEPENDENT EXAMINER

Messrs DSG were appointed as the Trust's independent examiners during the year and have expressed their willingness to continue in that capacity if so required.

This report has been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applic

Adopted by the Trustees at their meeting dated 31st October 2021.

5

INDEPENDENT EXAMINERS' REPORT TO THE TRUSTEES OF RHYL STEAM PRESERVATION TRUST

YEAR ENDED 31st DECEMBER 2020

I report to the Trustees on my examination of the accounts of the Rhyl Steam Preservation Trust (the Trust) for the year ended 31st December 2020, which are set out on pages 7 to 12.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’) .

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

g g y y Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

DSG Chartered Accountants Unit 5 Evolution House Lakeside Business Park St David's Park Estate Ewloe Flintshire CH5 3XP

Date: 31/10/2021

6

RHYL STEAM PRESERVATION TRUST

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31st DECEMBER 2020

Note
Income from:
Charitable activities
Fares - normal days
Fares - special events
Donations - cash
2
Donations - kind
2
Grants
3
Other trading activities
Shop income
Investments
4
Total Income
1.3
Expenditure on:
Raising funds
Cost of shop purchases
Charitable activities:
Railway operating costs
5
Depreciation
Governance costs
6
Total Expenditure
Net (Expenditure)
/ Income
7
Total funds at 1 January
Total funds at 31 December		 Restricted
Restricted
Restricted Unrestricted
Total
Total
Fund -
Fund -
Fund -
Funds
2020
2019
Building
Locomotive
Gateway
Project
Projects
Project
£
£
£
£
£
£
-
-
-
38,815
38,815
56,057
-
-
-
3,106
3,106
16,714
-
-
-
284
284
769
-
-
-
-
-
-
-
-
-
30,622
30,622
2,122
-
-
-
26,346
26,346
28,850
-
-
-
13
13
22
-
-
-
99,186
99,186
104,534
-
-
-
12,966
12,966
13,794
-
-
-
53,992
53,992
62,538
26,137
1,530
705
12,770
41,142
45,941
-
-
-
1,052
1,052
864
26,137
1,530
705
80,780
109,152
123,137
(26,137)
(1,530)
(705)
18,406
(9,966)
(18,603)
561,260
2,380
2,115
162,589
728,344
746,947
535,123
850
1,410
180,995
718,378
728,344

7

RHYL STEAM PRESERVATION TRUST

BALANCE SHEET YEAR ENDED 31st DECEMBER 2020

Note 2020 2019
£ £ £ £
FIXED ASSETS
Tangible Assets 8
Station building project 1.5 402,470 429,302
Station building improvements 1.5 2,089 3,134
Plant and equipment 1.5 94,048 73,217
Heritage assets 1.5 166,102 166,102
664,709 671,755
CURRENT ASSETS
Stock 1.6 6,300 2,970
Debtors 9 1,560 1,500
Bank 46,848 55,026
54,708 59,496
CURRENT LIABILITIES
Creditors 10 (1,039) (2,907)
NET CURRENT ASSETS 53,669 56,589
TOTAL NET ASSETS 718,378 728,344
THE FUNDS OF THE CHARITY
Unrestricted funds 180,995 162,589
Restricted funds 1.7, 12 537,383 565,755
TOTAL CHARITY FUNDS 718,378 728,344
Approved at a meeting of the Trustees on 31st October 2021
L Hughes Trustee
S Townsend Secretary

8

RHYL STEAM PRESERVATION TRUST

NOTES TO THE ACCOUNTS YEAR ENDED 31st DECEMBER 2020

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

1.1 Basis of accounting

The accounts 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 in the UK and Republic of Ireland (FRS102) issued on 6 July 2014, and the Charities Act 2011 and applicable regulations. The Trust constitutes a public benefit entity as defined by FRS102. Except for Heritage Assets the accounts have been prepared under the historical cost convention with items recognised at cost or transaction value.

1.2 Fund accounting

1.3 Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amounts can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

1.4 Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expenditure to which it relates.

1.5 Tangible fixed assets

1.6 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.7 Restricted funds

Balances on restricted funds created by grants and donations received for capital projects will be released to unrestricted funds against depreciation of the relevant assets.

9

RHYL STEAM PRESERVATION TRUST

NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

2 Donations

2
Donations
Donations and gifts - cash & gift aid
3
Grant income
Other		 Restricted
Unrestricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
-
284
284
769
Restricted
Unrestricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
-
30,622
30,622
2,122

Grants receivable during 2020 were Welsh Government through the Museums, Archives and Libraries Division, and the Federation of Museums and Art Galleries of Wales £19,000, Welsh Government £10,000, National Manuscripts Conservation Trust £1,500 (2019: £1,500), Marine Lake Users Forum £nil (2019: £500), Rhyl Town Council, £122 (2019: £122),

4 Investment income

Bank interest
5
Expenditure on charitable activities		 Restricted
Unrestricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
-
13
13
22
Railway Operating Costs
Coal and oil
Inspection fees
Wages
Insurance
Electricity
Telephone and alarm maintenance
Water rates
Rent and rates
Repairs and maintenance
Special event costs
Leaflets and advertising
Sundries, museum equipment
and consultancy		 Restricted
Unrestricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
-
1,866
1,866
3,201
-
1,030
1,030
660
-
22,686
22,686
20,272
-
6,174
6,174
5,781
-
2,663
2,663
3,118
-
1,916
1,916
2,324
-
460
460
811
-
367
367
682
-
4,889
4,889
10,252
-
2,141
2,141
8,221
-
2,917
2,917
3,882
-
6,883
6,883
3,334
-
53,992
53,992
62,538

10

RHYL STEAM PRESERVATION TRUST

NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

6 Governance costs

Restricted
Unrestricted
Total
Total
Funds
Funds
2020
2019
£
£
£
£
Independent examiner's fee
-
1,052
1,052
864
7
Net income for the year
2020
2019
£
£
This is stated after charging:
Depreciation
41,142
45,941
Independent examiner's remuneration
1,052
864
No remuneration was paid to any Trustees during the year (2019: nil).		 Restricted
Funds
£
-		 Unrestricted
Total
Total
Funds
2020
2019
£
£
£
1,052
1,052
864

8 Tangible assets

Cost or valuation
at 1st January 2020
Additions at cost
during the year
Additions at valuation
during the year
Disposals
Balances at 31st December 2020
Depreciation
at 1st January 2020
Charge for the year
Disposals
Balances at 31st December 2020
Net Book Value
At 31st December 2020
At 31st December 2019		 Station
Building
Plant
Building
Improve-
and
Heritage
Project
ments
Equipment
Assets
Total
£
£
£
£
£
778,046
10,449
163,875
166,102 1,118,472
-
-
34,096
-
34,096
-
-
-
-
-
-
-
-
-
0
778,046
10,449
197,971
166,102 1,152,568
348,744
7,315
90,658
-
446,717
26,832
1,045
13,265
-
41,142
-
-
-
-
0
375,576
8,360
103,923
-
487,859
402,470
2,089
94,048
166,102
664,709
429,302
3,134
73,217
166,102
671,755

The station building project is located on land leased for a period of thirty years from 8th March 2006.

11

RHYL STEAM PRESERVATION TRUST

NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

9 Debtors

Debtors
Prepayments Total
Total
2020
2019
£
£
1,560
1,500
1,560
1,500

10 Creditors: amounts falling due within one year

Interest free loan from Trustee
Accruals
Analysis of net assets between funds
Tangible fixed assets
Stock
Debtors
Bank
Creditors due within one year
Creditors due in more than one year		 Total
Total
2020
2019
£
£
39
1,957
1,000
950
1,039
2,907
Restricted
Restricted
Restricted
Unrestricted
Total
Funds
Funds
Fund -
Funds
Building
Locomotive
Gateway
Project
Fund
Project
£
£
£
£
£
535,123
850
1,410
127,326
664,709
-
-
-
6,300
6,300
-
-
-
1,560
1,560
-
-
-
46,848
46,848
-
-
-
(1,039)
(1,039)
-
-
-
0
0		 Total
Total
2020
2019
£
£
39
1,957
1,000
950
1,039
2,907
535,123
850
1,410
180,995
718,378

11 Analysis of net assets between funds

12

RHYL STEAM PRESERVATION TRUST

NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31st DECEMBER 2020

12 Restricted funds

Monies received by way of capital funding for the station building project have been credited to the station building project fund. Following completion of the project an annual depreciation charge for the building is being charged to the fund. The effect of the policy will be to reduce the balance of the fund to zero over the same period as the fixed asset concerned.

Monies received by way of capital funding for the restoration of locomotives have been credited to the locomotive projects fund. Following completion of each project an annual depreciation charge for the locomotive is being charged to the fund. The effect of the policy will be to reduce the balance of the fund to zero over the same period as the fixed asset concerned.

Monies received by way of capital funding for the Museum Gateway project have been credited to the Gateway Project fund. The main item funded this way was a wooden canopy which enhances the approach to Central Station. The depreciation charge on these items is being charged to the fund. The effect of the policy will be to reduce the balance of the fund to zero over the same period as the fixed assets concerned.

Station building and museum project
Locomotive Projects Fund
Gateway Project Fund		 Balance at
Incoming
Transfer re
Balance at
1 January
resources
depreciation
31 December
2020
2020
£
£
£
£
561,260
-
(26,137)
535,123
2,380
-
(1,530)
850
2,115
-
(705)
1,410
565,755
-
(28,372)
537,383

13