The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Charity No: 1129893
Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Trustees
Toby Watkins Chair of Trustees Julian Birley Mike Thompson Paul Jarman
Registered Office
11 High Moors Halton Buckinghamshire HP22 5NY
Independent Examiner
Robert Newman Carter Collins & Myer Chichester House 2 Chichester Street Rochdale Ol16 2AX
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Structure, Governance and Management
Governing Document
The Charity is a Trust and is governed by its Deed of Trust established on 3[rd] March 2009. It is registered as a charity with the Charity Commission. The Trustees have the power to admit any constituted voluntary group or individual to membership and also have the power to remove members. Trustees may permit any member to retire provided that after such retirement the number of members is not less than two.
Objectives and Activities
The objectives of the charity are to advance education and learning and to promote public benefit through the preservation, restoration,' maintenance and exhibition of steam railway locomotives and other railway artefacts, establishing a facility for the safekeeping and exhibition of them and the provision of information and education about the history of such locomotives and other railway artefacts.
The first artefacts placed into LCLT’s care, by Beamish, The North of England Open Air Museum, are former North Eastern Railway ‘J21’ 060 locomotive No. 65033 and NER bogie tools van No. 5523.
Much later on, in 2019, the Trust also acquired NER coach No. 2051, which once restored will be a suitable vehicle to operate behind the 'J21'. Once in steam, the locomotive will haul both No. 5523 and No. 2051, in addition to other such vehicles based at our host Railway, Kirkby Stephen East in Cumbria, home of our project partners the Stainmore Railway Company.
Appointment of Trustees
The Trustees, are appointed by the members at the annual general meeting and are collectively known as the Board. At each AGM, one third of the Trustees retire by rotation, being the longest in office. They are eligible for reelection. Other than a retiring trustee, the only people eligible for election as trustees are those either nominated by the Board or by a member giving not less than 7 and not more than 28 clear days notice of the intention to propose a person for election. The Charity, by ordinary resolution, or the Trustees, may appoint a person who is willing to act, to fill a vacancy, providing that a Trustee so appointed shall hold office only until the next AGM.
Trustee recruitment, induction and training
The Locomotive Conservation and Learning Trust (LCLT) has a recruitment and induction policy which includes all new Trustees, involving skills and knowledge. LCLT has no specific policy for Trustee Training, but training opportunities and governance information is forwarded to Trustees.
Volunteers
The Project HG1321839 is being delivered in partnership with the Stainmore Railway Company (SRC) and it is their volunteers who have been steadfastly restoring the Trust’s artefact, the NER Stores Van No.2 of 1902 vintage. The locomotive is being restored by the contractor LMS Ltd and thus does not employ any volunteer labour.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Organisation
The advent of the pandemic and the deployment of the Chairman (a serving RAF officer) for several months to the Middle East has drastically reduced the times that Trustees and Project Board have met. Nonetheless, the use of Zoom and other virtual means have allowed the Project Board comprising representatives of the LCLT and SRC to regularly meet and make decisions. Minutes are maintained of each Project Board meeting.
Risk management
The Board has undertaken a review of the major risks to which the Trust is exposed and established systems and processes to mitigate those risks. The major financial risks facing the charity are – changes in funding streams, sustainability of projects and changes in local and government policy. Risks to funding are considered as part of the business planning process. The sustainability of projects is to be mitigated by consistent dialogue with partners and funders. Each project has its own business and strategic plan. Internal risks are mitigated by processes that are accountable and monitored. Such procedures are reviewed to ensure the company meets its legal and operational objectives.
Public benefit
Ever since formal permission to start was granted by the (then) Heritage Lottery Fund in November 2018 for the LCLT to begin Project HG1321839 the Trust has been steadily restoring its two main artefacts; J21 locomotive No.65033 and North Eastern Railway Stores Van No.2 (erroneously listed in past publications etc as No.5523). The project also comprises the creation of a meeting room in Kirkby Stephen East station.
Assets and Liabilities
The Trust was formed in 2009 ostensibly to conserve and eventually restore the above vehicles. An additional vehicle, 1886 6wheel coach No.2051, was obtained in 2019 when the Trust was alerted to its existence, its good condition, and that it could be had in exchange for a shed to replace the function it had on the previous owner’s premises.
Achievements & Performance
During this year the Trust has continued to restore the two main artefacts at the centre of Project HG1321839; the Stores Van reached a state of completion following its lengthy refurbishment that began in late 2018. With the vehicle complete it awaits a new canvas roof and fitting out as a bespoke museum display before an expected full completion the late Spring of 2023.
The J21 locomotive No.65033 began a lengthy overhaul in September 2019 and progress continues to be made on its restoration at the Locomotive Maintenance Services Ltd works in Loughborough. Having been stripped to its many thousands of component parts the process of rebuilding is ongoing with an expected completion in late 2023 or early 2024. During the period of this report the main foci have been the refurbishment of the various parts comprising the locomotive and the rebuilding of its tender. The latter is due to be complete in the autumn of 2022, in turn allow the team to concentrate on the larger task of completing the locomotive.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
The restoration of Coach 2051 was earmarked as a longer term project to follow the return to steam of 65033. Owning the coach body only, the Trust estimated some £20,000 to recreate an authentic 6wheel chassis for it. However, the Trustees were delighted to have the opportunity to purchase in February 2022 a 6wheel chassis from renowned coach restorer Stephen Middleton. While requiring some adaptation (it is of Great Eastern Railway origin) it, and other parts donations, have saved the Trust at least £10,000.
Financial Review
Receipts from supporters were lower than planned prior to the pandemic due to cancellations of the shows and opportunities where fundraising will take place in due course. The Trust has maintained sufficient income to “prime the pump” necessary to maintain spending on the project for which the Heritage Fund will reimburse 91% as part of Project HG1321839. Their contribution of £182,231 during this period is the lifeblood of the project and is part of the grant of £954K awarded by the (then) HLF announced in March 2017.
Using experience from other projects, and noting the increase in events as the pandemic recedes, the Trust will increase its fundraising activity later in 2022 once the focus of restoration has returned to the engine itself. The expectation is that the Trust will adopt a higher profile at events and in the specialist media in order to raise in excess of £40,000 in 2023.
The twin pressures of the pandemic and the deployment to the Middle East of the Trust Chairman has meant that several invoices have been paid by the Chairman, in turn reimbursed by the Trust at the earliest opportunity. While for expediency this device may be used occasionally in the next Financial Year it will be used only in extremis.
Reserves Policy
The main effort, indeed raison d’etre, of the Trust is the restoration of the J21 and Stores Van through the Heritage Fund supported Project HG1321839 and the structure of the accounts reflects this with the Current Account functioning as the mechanism by which income is received, project bills are paid and subsequent reimbursement of Heritage Fund grant and VAT repayment is processed.
The Reserve Account functions to maintain money to repay the Transport Trust loan made in 2011 and to set aside any donations made for activities beyond the J21 project, such as the eventual restoration of coach 2051. However, due to the annularity of the payment falling outside of the period covered here, the repayment has not featured in this year's accounts.
Administrative Administration
The Trust’s headquarters is the home of the current Chairman, Toby Watkins: 11, High Moors, Halton, Buckinghamshire, HP22 5NY.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Trustees Responsibilities
The trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Charity law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under 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 the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any
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material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to
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presume that the company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the 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 Charities SORP. 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to independent examiners
Each person who was a director at the time this report was approved confirms that:
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so far as he is aware, there is no relevant information of which the charity's independent examiner is unaware; and
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he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant information and to establish that the charity's independent examiner is aware of that information.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
This report was approved by the board and signed on its behalf.
Toby Watkins Chair of Trustees
7[th] November 2022
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Independent examiners' report to the members
I report on the unaudited accounts of The Locomotive Conservation and Learning Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.
Respective responsibilities of trustees' and independent examiner
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
I am qualified to undertake the examination, being a qualified member of the Association of International Accountants (AIA). Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of the independent examiner's report
My examination was carried out in accordance with general directions given by the Charity 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
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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to prepare accounts which accord with the accounting records, comply with the accounting requirement of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Robert Newman MAAT ATT FFA FAIA MCICM CMgr Independent examiner Chichester House 2 Chichester Street Rochdale, Lancashire OL16 2AX
7[th] November 2022
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Statement of Financial Activities for the year ended 31 March 2022
| 2022 | 2021 | |
|---|---|---|
| Receipts | ||
| Income from regular supporters | £2,513.21 | £1,383.87 |
| Ad hoc donations | £3,992.00 | £19,567.61 |
| Arts Council (PRISM) Grant | £2,000.00 | £0.00 |
| Heritage Fund 91% contribution to Project costs | £182,231.00 | £223,579.00 |
| VAT | £41,249.00 | £29,985.00 |
| Total Income | £8,505.21 | £20,951.48 |
| TOTAL Receipts (inc VAT Reclaim): | £231,985.21 | £274,515.48 |
| Payments | ||
| J21 restoration project | £259,224.68 | £481,035.24 |
| Annual insurance (Trustees) | £264.30 | £288.55 |
| Annual insurance (artefacts) | £0.00 | £172.35 |
| Transport Trust annual loan payment | £0.00 | £105.35 |
| TOTAL | £259,488.98 | £481,601.49 |
| Payments in excess of Receipts | (£27,503.77) | (£207,086.01) |
| Reserve Account | ||
| Interest | £0.45 | £1.79 |
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Balance Sheet as 31 March 2022
| 2022 | 2021 | |
|---|---|---|
| Fixed Assets | ||
| Locomotive J21 No.65033 | £500,000.00 | £500,000.00 |
| NER Stores Van No.2 | £60,000.00 | £60,000.00 |
| NER Coach No.2051 | £50,000.00 | £50,000.00 |
| Current Assets | ||
| Bank Account 78581249 | £5,445.67 | £32,095.14 |
| Bank Account 78581257 | £4,376.16 | £4,375.71 |
| Total Assets | £619,821.83 | £646,470.85 |
| Liabilities | ||
| Transport Trust Loan | £5,000.00 | £5,000.00 |
| Net Assets | £614,821.83 | £641,470.85 |
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
The accounts have been prepared in accordance with the provisions in Statement of Recommended Practice: Accounting and Reporting by Charities.
These accounts have been approved by the board and signed on its behalf.
Toby Watkins Chair of Trustees
7[th] November 2022
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Notes to the Accounts for the year ended 31 March 2022
Accounting Policies
Basis of preparation
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
The accounts have been prepared in accordance with the provisions in Statement of Recommended Practice: Accounting and Reporting by Charities.
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work or for specific projects being undertaken by the Charity.
Incoming resources
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of specified services it is deferred until the criteria for income recognition is met.
Resources expended
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
The Locomotive Conservation and Learning Trust
Trustees Report and Financial Statements for the year ended 31 March 2022
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Depreciation
Given the restoration of the Trusts assets, the trustees have not provided depreciation as the economic life is considered to be indefinite.
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Doc ID: 41fa4355a41a955fd8f3ae3ae448b612f53b8c35
Audit trail
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Signed_LCLT Accounts_31-03-2022 Title The Locomotive Co...22_07-11-2022.pdf File name Document ID 41fa4355a41a955fd8f3ae3ae448b612f53b8c35 Audit trail date format DD / MM / YYYY Status Signed
20 / 12 / 2022 Sent for signature to Toby Watkins 21:15:28 UTC (toby.watkins107@mod.gov.uk) from rd-newman@hotmail.co.uk IP: 185.43.78.25 23 / 12 / 2022 Viewed by Toby Watkins (toby.watkins107@mod.gov.uk) 08:31:26 UTC IP: 185.13.50.181 23 / 12 / 2022 Signed by Toby Watkins (toby.watkins107@mod.gov.uk) 08:36:58 UTC IP: 185.13.50.181 23 / 12 / 2022 The document has been completed. 08:36:58 UTC
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