svcc STROUD VALLEYS CANAL COMPANY (Litnited by Guarantee) Trustees. Annual Report and Financial Statements for the year ended 31 March 2023 Company Number 06860375 (England & Wales) Charity Number 1130051 STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT For the year ended 31 March 2￿23 coKrENTS Page Directors'ifrustèes, annual report 3to9 Independent Examiner's report 10 Statement of Financid A¢tNrties Balance Sheet 12 Notes to the Financial Statements 13to20 STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT For the r ended 31 March 2023 The Di￿CtOrS1rrusteeS gubmil theirknnual Repc*l togetherwith the financ￿1 statements for the year ended 31 March 2023 . The Trustee$ ￿nfirM that the Annual Rep¢yt and financk?I statements of thè CLxnpany compty wf(h the current statutory requiremerits. the requirements of the companls goveming document ar￿ the provisions of the Statement of Recommended Practice {SORPI, 4)plTrcaL4e to charities preparing their accounts in accordan¢8 with the Financial Reporting Standard appl￿ble in tha UK and Republic of Ireland IFRS 1021 {effectNe 1 January 20191. As an incorporated Charity this Trustees Annu81 Report also incI￿leS the DirectoVs reFL)rt a8 required by company law. 1 LEGAL AND ADMINISTRATIVE COMPANY NUMBER 06860375 {England and Wales) mi18d by guarantee CHARITY NUMBER 113[1￿1 REGISTERED OFFICE and PLACE OF BUSINESS Bell House Walbridge L¢xk Wdvondge Stroud Gloucestershire GL5 3JS INDEPENDENT EXAMINERS Randall & Pa￿e LLP Chartered Acuxjntants Chargrove House Shurdington Road Cheltenham GL514GA soucrroRS BPE Sol￿rtOrs LLP Sl James St James Chdlenham GL50 3PR BANKERS Nalwest Stroud GL5 3DT TRUSTEES As per ￿st of Directors in ￿lon 3 KEY MANAGEMENT PERSONNEL Chair ofthe Board, plus Diwtors STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT {conYd} Forthe r ended 31 March 2023 2 AIMS AND OBJECTIVES The Slroud Valleys Canal Companls aim is'.- To work with Stroud District Council, Gloucestershire ￿nty Council. the Cotswc￿j Canals Trust and the Company of Fruprietors of the StrDudw8ler NavKJation lo effect the restoration of the Cotswold Canals. The objects of the Ch8rity are to preserve. maintain and improve the Cotswold Canals and their surrounding areas for the b8n8rrt of the public. The Trustees confim that they have referred to the Informall¢￿ contained in the Charty Commission's General Guthnc8 on Public Benefrt when reviewing the Board's objectives. &tiwlies and plans for the STRUCTURE, GOVERNANCE AND MANAGEMENT 3 THE BOARD The Stroud Valleys Canal Company is t*Jth a Charbty and a C(￿￿panY limited by guarantee. The CLNnpany was constitutsd under Memrxandum and Articles of Association dated 1 March 2009 and amended in 2 resolutions dated 6 May 2009 and 13 December 2018 which sets out Companls objects and how il may operate. The Cclnpany was register8d as a charity the Charilies Commission on 9 June 20D9 The Board of Directors fulfils the dual role of Ttustees of the Charty and Dir8Ctors of the Limited Company. The DirectO￿￿rUsteeS who served during the yearwere.. Kenneth Burgin Geoffrey Dyer Martin (Fod) Bames John Beaty Colin Hygète David Gr John TWI ichael Lambert Robin Lafftkl {app)inte(119 October 2022} Petsr Rog Matthew Lee David Swinbume Nicholas Housden (appointed on 19 OctL*>er 2022, resigned on 11 April 2023) stephen Dames was appointed after the year end. on 11 April 2023. 4 ME￿INGs The Board of Directory￿rUStee$. which manages the business of lh8 Charity, meets regularly, usually monlhty. 5 MEMBERSHIP The Company had 4 members at the Balance Sh8et date.. Stroud District Council The Cotsw¢Jd Canals Tnjst Gloucestershire County Council The Company of Proprietors of the Strou[tr￿ter NavigatH STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT Iconvd) For the ear ermled 31 March 2023 6 DAY TO DAY MANAGEMENT AND ADMINISTFiATION Lisa Mant, Company Secretsry of Cotswold Canals Trus( undertakes day to day Management and Administration of the Charty. Administtation is now undertaken by staff of Cotswold Canals Trust Advice and support has been provijed by the Canal Prryect Te￿n aryj the Asset Man￿eMent Team of Stroud District Council. 7 METHODS ADOPTED FOR RECRurrMENT AND APPoINTmETr￿ OF TRUSTEES Trust￿ vtho are appointed by member ¢Ngani￿t￿)nS are Chosen by that org8nisation acC￿dIng lo their own internal systems. Independent Trustees are nominated by existing Trustees as hawng particular skill5, expertise or knowledge which is consKlered useful to the Board as a wh)le. The appoH)tment of an indeFefKlent Trustee must be agr*d by all Members. There are QU￿entlY no petsonnel emplo￿￿ by the Charity. 8 INDUCTION AND TRAINING POUCY FOR TRUSTEES Trustees aré provKl&J copies of currenl busiw pkns and project p5an¥. A tour of the geographi¢￿1 area of th8 Canals is pmmded, rf required. New Trustees are advised to read Ihe Charty cc4nmlssK￿ gu￿￿OnCe forTrustees. g ORGANISATIONAL STRUCTURE AND DECISION MAKING The organisation consists of the Board of DIrec*cKs￿n￿teeS and a Comparry Secretary. All decisions are made at the monthty Board meeting, with informalKJr) and advice provijed by the Canal Project Team and Asset Management Team. bjth of Stroud District Council. whero appropriate. Excaptionalty, decisions may be tyreed electronicalty, and in emergencies, one Dir&lor may make decisions and ¥ed( approval as soon as is possibkg. STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT Iconl'd) For the ear ended 31 March 2D23 10 IDENTIFICATION OF m￿lOR RISKS The Charty, Stroud Valleys Canal Company ISVCC), is inveAv8d ￿th the restorathjn of the Cotswol Canals. It is responsible for the maintenance and cperation of a si% mile stretch of recently restor8d canal (Phase 1A> and partn8red wtth Stroud District C(yJrKil (SDCI, the Cctswolds Canal Trust ICCTI, Glouce$l8r County Council IGCCI and the Canal & River Trust {C&RTI in th8ir successful bid lo the National Lottery Henlage Fund INLHF) for a £9 million grant lo permit Ihe restoration of a further 4.5 miles of canal (Phase 1 B) which would provbje a connection into the 2500 mle national canal nemvrk. Currenlly the mainlenanco of Ph8$8 1A is being predominately funded by annual grants from SDC and CCT gugmented by self generata income. Until a connectTrDn into the nati￿al nefv￿rk is achieved there will be no substantial income from craft licences and mooring fees and reliance on the annual grants wll ￿ crucial. Maintaining close relation5 wlh SDC and CCT is therefore extrwnety important and both organisalions work clgsety with the SVCC Board. The SVCC Board comprises prof8SS￿nal volunteers who bring a VAde and comwehensive set crf kno￿edge and commewal experience to the table. Each Director is allocated a specific aspect for attenlion and management. One Director has extensNe experience in risk assessment and management. Whilst SVCC is not committed to contribute any ￿$h to the Phase 1 B work other than in regard to Bonds Mill BrKlge for which a Restricted Fund is M￿ntaIned, they are a full Partner in the prc4ect and ¢onlribule through the aPpI￿ation of professional exF￿'Se and time to both the day to day operat￿n, and longer term planning, of the 1 B projecL A majgr part of the grant application to NLHF is the SVCC Business Plan. This Cons￿1￿r$ the ￿n1￿fiVe year operational period after COnnect￿n to the national network is achieved. The plan has been subjected lo extensive probabilistic risk assessment. However. in the light of development5 over the last few years the details of this plan now need lo be reviewad, wrth a view to ensuring that the k)ng tomi plan for the reconnect canal remains fil for purpose FINANCIAL REVIEW 11 M￿oR GRA￿rS AND DONATIONS The Chariiy acknovAedges the m4or grants received frrm the Herriage Lottery Fund {HLFI, and from S￿h Wesl Regional Devek)pment Agency (succeeded by H￿neS & Ccfflmunrt￿ Agency. Homes England}, Slroud District Council, Cotswold Canals Trust and others trjwards the canal project. Without these funds and donation5 the Restoration project would b8 unable to Pr￿e&l. STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT (conyd) For the ear en(kd 31 March 2023 12 RESERVES POLICY The ReseNes of a charity are that part of a chariys income furKls that is f￿elY availabb for its general purposes. This excludes Restricted Funds (lunds donated for a specific purposel. The Balance Sheet of the Charity on 31 March 2023 Shows Tota FuThls of £1,636.499 {2022 as restated - £1,656,783) of which £136,16312022- £146.1531 is restricted. The G8n8ral fund al 31 March 2023 amounted to £1.420,60412022 a5 restated- £1,448,306). Designated Funds are fvnds which the Board has eamiarked for particular projects. The Board'5 Designated Infrastructure fur￿ £4.482 {2022- £11.3241 is teing applied to th6 investigation of opportunities lo derive value from silt extrth from th8 canal. A further Designaled Fund has been set up to mrtigate against future wsls which might be incurred al Dudbridge Hydro as a resuit of Irrecoverab￿ ￿Idental bsses.1202> £6,250, 2022- £5,000] A further D8sign&led Fund has been established to bulky up reserves needed lo Gover the programme of lock gal& raplac8m6nts antiapated to be required until the mid 2(Ws.12023 -£69,000, 2022 -£46,000] Free Reserves are the amcNJnt of General Funds (Induding DesMJnaled Funds: but excluding Fixed Assets) which are available for the Board to spend. The Free Reserve5 al 31 March 2023 are £175.452 (2022 - £143,520) The Board is aware of the ne￿1 to.. 8. Secure the w8bilty of th8 Charity beyond the immediate luture. b. Absorb any financial setbacks and lo take advantage of change and ￿portUnities. . Secure unrestrthd funding forthe longer tem) lo covw the running costs of the ChaTrty and provide reserwes. Th8 Charity's Annu￿ Budget incorporates planned expendlture m8tch8d by resems plus forecast income in respect of the day lo day activ￿$. The Board belwes, hcp•vever, that it is prudent to keep a minimum reserve of £20,000 in the General Fund to ￿ver UnfOres￿n eventuaif(ies. The Board ￿11 review its Reserve5 Policy once a year and will do ils best to ensure that roserves are maintained al the agreed level. 13 FINANCIAL POSITION AT YEAR END The financial position of the Charity rewnains healthy but this is largety due to the restr￿￿n¥ that have been Impos￿ on the construction of mwrings as a res￿￿ of the populab.on of water voles land Other wildlrfe) along the 1A seclw)n of the canal. The creation of the ostor￿1 waleJway through Slroud (section 1A- from BrimscombeThhrup lo Eastingtonl has been vw successful in increasing the populatton of water voles (and other wldlife- for examp￿e otters). which in tum has required the introduction of rbèw procedures and restridions on the ability lo install new moorings arKI other, ￿al side infrastructure. Generalty this resums in delay, rather than a need lo aband¢)n. infrastructure devdopm&nt 11 is th6refora anticipaled Ihal expendfture by the Chartty will increase in the Com1r￿ years as these new pr￿edureS and processes bed in Incom8 was dwived primarity from grants and donat￿n5 from Slroud District Council1£55kl and Cotswold Canals Trust 1£36kl, from electricity generation {£18K) and from water discharge fe&s {£19KI. £86k was spent on acquiTing equipmenl and boats, £65K Qfwh￿h was covered by specific grants, and £18K on canal improvements in the fomi of winding holes, mcKJrings and elc. as part of the piogtamme of preparing the Canal for its reconmnection to the Nah'onal nelwork. 14 GOING CONCERN After making approprial@ enquiries, the Iruslees have a reasonable expectation that the Chanty has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue lo adopt the going concem basis in preparing the )Inan¢ial Statements. Further details regardit the adoption of the going concem basis can be fouTrJ in the Acct)untiNJ Pol￿185 section. STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) DIRECTORS. REPORT (conyd) Forl r gndod 31 March 2023 ACHIEVEMENTS AND PERFORMANCE 15 THE CHARJTY'S ROLE WITHIN THE RESTORATION PARTNERSHIP The Cotswold Canals Partnership comprises a Iwge number of organisations including all the local authorities along the line of the canal, th8 Enmronment Agency. The Canal & River Trust, Natural England, Ihe Inland WateThvays Association and the Cotswobj Canals Trust The Charty continues to play an important role wthin the Partnership. Phase 1A of the restorab.on of the navigaticffi bets￿n Ocean and Stroud Brewery is almost complete, with srmne additional infrastructure required befDre recOnn￿￿On. Phase 1 B is being led by Stroud District Council and Cotswold Canals TN$L the timetable forwh￿h has slipped. At reconnection the Charity believes that both Df Phases 1A and 1B ￿11 enable a fully OFeralional canal from Saul Junction lo the SIToud Brew8ry. (Further progress has been on the restoraknon of the canal basin al Brimscombg Port through the appoinkn8nt of developers wth detsiled pLgns being developed to enable pemianenl and residential moorings to be provKled in line wlh th8 requirements of the planning pemiission. When complete. this new canal asset will be handed back to SVCC.) The charity has continued to be actwety invoived in the Partnwship's vKJrk of designlThJ the new can81 and relatsd infrastructure as the 1B project is rolled out, in dealing wth the administrative issues that como UP wlhin the 1B project and genarally plawng the appropriate role on the Project Board. As restoration continues and usage of the restored canal and towpath increases the demands on the various organisalions that look after the Can￿ also increases. Serious thought is now being gNen lo the n9¢8ssary adrninistrative resource infrastructure needed to ensure that the operation of the r￿OnneCten$ of part 15 of the Companie$ Act 2006 relating to small companies. The trustoes declore that they have approved the tsu$tees' repLYt above. Chairman G//X F¢)d Barne$ D*e: 22 ## STROUD VALLEYS CANAL COMP ANY (Limited by Guarantee) ## REPORT OF THE INDEPENDENT EXAMINERS ## **Independent Examiner's Report to the Trustees of Stroud Valleys Canal Company** I report to the Charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023 which are set out on pages 11 to 19. ## **Responsibilities and basis of report** As the Charity trustees of the Company (and also its directors for the purposes of Company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** **I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect** - 1 ·[accounting records were not kept in respect of the company as required by section 386 of ] - the 2006 Act; or 2. the accounts do not accord with those records; or - the accounts do not comply with the accounting requirements of section 396 of the 2006 3. Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or the accounts have not been prepared in accordance with the methods and principles of the 4. Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard **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.** _Ryan Moore CA (Independent Examiner) For and on behalf of Randall_ & _Payne LLP_ _Chartered Accountants_ & _Independent Examiners Chargrove House Shurdington Road Cheltenham GL514GA_ Date: 24 August 2023 10 STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) sTATEmE￿r OF FINANCL4L ACTivrrtES INCLUDING THE INCOME AND EXPENDITURE AccOu￿r for the erKI￿ 31 March 2023 2023 2022 as restated Restricted income funds Total funds Total fund$ unreStr￿ted funds Notes Incomè Income and endowments frrjn.. Donations and leg￿les Charitable aclivitses othgr trading activities Investments Other Total 95,274 66,300 161,574 44,948 112,470 41.573 279 279 91 140.$01 206,801 154.134 Expendlturg Expenditure on.. Raising Funds Charitable Activities Other Total 184.765 32.330 217,095 9.990 194,755 32,330 227.08S 156.234 35,025 191,268 9.990 Net incomellexpendtiure} b￿tsre tax for the reporting p6rK)d 76.594 56A10 20.284 Net movern8nt In funds 56,310 20.284 37,124 Reconciliation of funds: Tot￿ funds brought fonrdrd Prior year adju$trnenl As rostated Transfer of Funds Total funds carried forward 1.490.630 146.153 1,636,783 1,693,907 20.000 20,000 1.510.630 146,153 1,656,783 66,300 166.300 1.500.336 136 163 1636,499 1,656,783 11 STROUD VALLEYS CANAL COMPANY (Limited by Guarantee) BALANCE SHEEr as at 31 March 2023 Unrestriel& fvnds income 2022 as funds 2023 Total restsled N(Ags FIXED ASSETS T8ngibl8 Assets 6 1.324.884 86,153 1,411.037 1,453,263 Total flxed assets 1.324.884 86,153 1 A11.037 1,453,263 CURRENT ASSETS Debtors Cash al bank and ir¢ harKI Total currnnt assets 45.486 145.719 191206 45,486 195,729 241.215 42,834 174,420 217.254 50.010 50,010 CREDrroRS', amounts falling due within one year 115,753) {15.7531 113,734) NET CURREfrrr ASSETS 175 50,010 225.462 203.520 TOTAL ASSETS LESS CURRENT UABIUTIES 1,500,336 136,163 1,636.499 1,656,783 TOTAL NET ASSETS 1.636,499 1,656,783 FUNDS OF THE CHARITY Restricted Income Funds Unre8trKted Funds 13 136,163 136,163 146,153 1,500,336 1.510,630 136.163 1,636,499 1,656.783 1,500,336 1,600.336 TOTAL FUNDS For the year ended 31 March 2023 the crxnpany was entiued to eX￿￿ptiOn from audit under S￿l0n 477 of the Companies Act 2006 relating to small ccKnpanh*. The members have not required the Company to obtain an aLKlri in accordance with sectK)n 476 of the Companies Act 2006. The Director5rtruslees ackn¢￿￿edge their responsibilty fot cOMp￿.ng wlh the requ1￿mentS of the Companies Act 2006 w((h respect to accountirMJ records and the preparation of accounts. These accounts have been prepared in accordan￿ wth the prowsions applicable lo small companies subjèct to the small companies regime and in accordance vitth FRS102 SORP. Signed by t￿) trusteesldirectors on behalf of all the trusteesldirectors Chaiman Fod Bames Date Z7 /g/zoW2 Date Signature of one director aulhentKaling accounts Chaimian Fod Barnes being sent lo Companies House Date 2Z 12 ## STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ## **1. Statutory** Stroud Valleys Canal Company is a private limited company, limited by guarantee, registered in England and Wales. The company's registered number, registered office and principal place of business can be found on the legal and administrative page. The Director's/Trustee's report contains more information regarding the company's principal activities. The presentation currency of the financial statements is in Pound Sterling (£). ## **2. Accounting policies** ## 2_ 1 **[Basis of preparation]** The financial statements of the charitable company, which **is** a public benefit entity under FRS102, 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) (issued in October 2019)', Financial Reporting Standard 102 Section 1 a for small entities. 'The Financial Reporting Standard applicable to the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## 2.2 **Incoming resources** Grants and donations are recognised in the accounts when the Charity has the rights to those funds and all external conditions are met. Where funds are subject to external conditions which have not been met at year end these have been dealt with as deferred income. Where the nature of the grant is in substance a loan, in that it is potentially repayable and carries interest, then it is accounted for as a loan. Other income is accounted for on an accruals basis so far as it is prudent to do so. Rental income is included in Incoming Resources on an accruals basis, and is recognised in the year to which it relates. ## **2.3 Restricted income** Where donors or funders specify that grants or donations, including capital grants are for a particular purpose, this income is included in incoming resources as restricted funds, and the relevant expenditure included in resources expended as restricted expenditure. ## 2.4 **Donated Assets and Services** Donated Assets and Services received are included in the accounts at a reasonable estimate of their open market value provided by either the donor or the Trustees. The services provided by volunteers are not given a value or included in the accounts. ## **2.s Income** The income shown includes assets donated to the Charity, such as canal structures which have been completed, e.g. new bridges. Transfers of freehold parcels of land are also included. ## **2.6 Expenditure** Expenditure **is** recorded on the accruals basis. Governance costs are those costs incurred in the governance of the Charity and its assets and are primarily associated with administrative, constitutional and statutory requirements. Grants made are recognised when payments are made to the recipient. 13 ## STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ## 2.7 **Tangible Fixed Assets** The freehold property owned by the Charity is considered to be a programme asset as it is held directly in pursuit of the organisation's charitable activities and is therefore included in the accounts at cost, or estimate of market value on acquisition where donated but not depreciated. Where a value is provided in a funding agreement under which the asset is acquired, the asset is included in the accounts at that value. Further purchases _have_ been made using either funding grants provided by the Heritage Lottery Fund or the charity's own funds and are included at cost. Dudbridge Hydro scheme is depreciated on a straight line basis at a rate of 10% per annum. Assets which cost, or are valued at, in excess of £250 are capitalised where they are expected to _have_ a useful life in excess of 1 year. However, items of expenditure to improve property which the Charity plans to demolish in the short to medium term will not be capitalised, and will instead be recognised as an expense in the year in which the costs are incurred. Equipment and Motors are depreciated on a straight line basis at a rate of 20% per annum. Boats are depreciated on a straight line basis at a rate of 10% per annum. Canal structures are depreciated on a straight line basis _over_ either 10 years in the case of mooring and landing stages or 25 years in the case of bridges. Assets in the course of construction are not depreciated until brought into use. ## **2.s Prior year adjustment** Accumulated depreciation brought forward on equipment and motor vehicles included £20,000 of excess depreciation charged in the prior year. This adjustment has had the effect of increasing the Tangible Fixed Assets and the General Fund brought forward by £20,000. ## 2.9 **Heritage Assets** The charitable company owns the line of the Thames and Severn Canal, from its junction with the Stroudwater Canal to the basin at Brimscombe Port, together with the towpath, locks and the fixed bridges which have primarily been in existence since the eighteenth century. These were gifted to the Charity at no cost, and it is considered that they should not be included as a Heritage Asset on the Balance Sheet. It is not considered that the cost of obtaining a valuation would be justified by the usefulness of this information to the users of the accounts. Our Heritage Assets are accessible to the public at all times. It is our policy only to acquire Assets which are an integral part of the Canal system. We aim to preserve and maintain all our Assets in order to provide a functional Waterway for the use of the public. However, those structures which are new-built or where costs are associated in a complete repair are capitalised according to the costs involved. Thus new bridges are depreciated over 25 years. ## 2.10 **Taxation** As a registered Charity, the Company is generally exempt from Corporation Tax in connection with its direct charitable purpose, but not from VAT. The Charity is registered for VAT and relevant income and expenditure is included net of VAT. Where VAT is irrecoverable it is included within the expense item to which it relates. 14 ## STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ## 2.11 **Going concern** The trustees have considered the financial risks that are relevant to the going concern, which are considered to be: the inability to meet its maintenance covenants under a lease. The Trustees believe that the Charity should be able to meet its commitments as they fall due, having considered a period of at least one year from the date of approval of these accounts. Therefore the Trustees consider the going concern basis to be appropriate for the preparation of the accounts. ## 2.12 **Financial Instruments** Financial Instruments are classified by the trustees as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. ## 2.13 **Operating leases** Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the year of the lease. ## 2.14 **Capital Commitments** As at the balance sheet date there were no current Capital Commitments |||2023|2022| |---|---|---|---| |3|**EXAMINATION OF ACCOUNTS**|£|£| ||Net incoming funds are stated afer charging:||| ||Independent Examiners' remuneration|2,600|2,600| ## **4 JOINT ARRANGEMENTS** As disclosed in the Director's report, the Charity is part of the Cotswold Canals Partnership and has entered into funding agreements with the Heritage Lottery Fund (HLF) and South West Regional Development Agency (SWRDA), succeeded by Homes and Communities Agency (HCA), now Homes England, jointly with Stroud District Council for the purpose of restoring the Cotswold Canal. Funding has been received by the Charity in the form of freehold land from SWRDA under these arrangements, with the Charity taking joint responsibility for certain of the obligations to HLF and HCA. 15 ## STROUD VALLEYS CANAL COMPANY ## Notes to the financial statements for year end 31 March 2023 |||||||2022 as| |---|---|---|---|---|---|---| |5|**TOTAL RESOURCES EXPENDED**||2023|||restated| |||General|Designated|Restricted|Total|Total| |||Funds|Funds|Funds|Funds|Funds| |||£|£|£|£|£| ||**Charitable activities**|||||| ||Lease costs|2,250|||2,250|2,250| ||Canal repair & maintenance|55,034||9,990|65,024|37,681| ||Depreciation in year|127,481|||127,481|116,302| |||184,765||9,990|194,755|156,234| ||**Other**|||||| ||Insurance|6,531|||6,531|4,573| ||Solicitors fees|||||| ||Examiners' remuneration|2,600|||2,600|2,600| ||Other Professional fees|||||| ||Administration services|10,321|||10,321|11,386| ||Other costs|12,878|||12,878|16,465| |||32,330|||32,330|35,025| No Trustees received remuneration during the period ended 31 March 2023 (2022: £nil). Details regarding reimbursement of expenses can be found within note 15. 16 ## STROUD VALLEYS CANAL COMPANY ## Notes to the financial statements for year end 31 March 2023 ## 6 **TANGIBLE FIXED ASSETS Programme Assets** ||||||||| |---|---|---|---|---|---|---|---| |**Programme Assets**|||||||Total| |||||||Assets in|| |||||Dudbridge||the course|| ||Equipment &|||Hydro|Land and|of|| ||Motors|Boats|Structures|scheme|Buildings|construction|| ||£|£|£|£|£|£|£| |At cost or valuation|||||||| |At 1 April 2022|117,612|80,953|1,590,123|264,834|109,153|24,354|2,187,028| |Additions|10,353|58,347|17,546||||86,246| |Transfers|||12,468|||(12,468)|| |Disposals|(9,915)||||||(9,915)| |At 31 March 2023|118,050|139,300|1,620,137|264,834|109,153|11,886|2,263,359| |Accumulated|||||||| |Depreciation at 1 April
2022 as previously|(99,313)|(29,793)|(397,543)|(227,117)|||(753,765)| |stated|||||||| |Prior year adjustment|20,000||||||20,000| |At 1 April 2022 as
restated|(79,313)|(29,793)|(397,543)|(227,117)|||(733,765)| |Depreciation in year|(18,502)|(12,572)|(69,913)|(26,483)|||(127,471)| |Eliminated on disposal|8,915||||||8,915| |Total Depreciation|(88,900)|(42,365)|(467,456)|(253,600)|||(852,321)| |Net Book Value as at:|||||||| |31 March 2023|29,149|96,935|1,152,681|11,234|109,153|11,886|1,411,037| |31 March 2022 as|||||||| |previously stated|18,300|51,160|1,192,580|37,717|109,153|24,354|1,433,263| |31 March 2022 as|||||||| |restated|38,300|51,160|1,192,580|37,717|109,153|24,354|1,453,263| |8|**DEBTORS**|2023|2022| |---|---|---|---| |||£|£| ||Trade debtors|9,696|11,797| ||Prepayments and accrued income|26,474|19,875| ||Other taxation and social security|9,316|11,163| |||45,486|42,834| 17 ## STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ||for year en|d 31 March 2023|| |---|---|---|---| |9|**CREDITORS**|2023|2022| ||**Amounts falling due within one year**|**£**|| ||Trade creditors|13,173|| ||Accruals and deferred income|2,580|5,629| ||Other creditors||8,105| |||15,753|13,734| ||**Deferred income**||| ||Balance brought forward|5,505|5,282| ||Released in the year|(5,505)|(5,282)| ||Deferred in the year||5,505| ||Balance carried forward||5,505| The deferred income relates to income received in the current financial year but which relates to the following financial year. |10|**FINANCIAL COMMITMENTS**|2023|2022| |---|---|---|---| |||Land & Buildings|Land & Buildings| |||£|£| ||The Charity had the following annual commitments under non cancellable operating||leases:| ||Expiring within one and five years||| ||Expiring after more than five years|2,250|2,250| The Charity has an obligation to maintain the canal under the lease. The future minimum lease obligations amount to £1,968,000. This valuation policy will be revisited once navigability has been restored. ## 11 **MEMBERS' LIABILITY** Each member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member. ## 12 **CONTINGENT LIABILITIES** The Charity has entered into joint arrangements for funding with Stroud District Council as described in note 4 which subjects the Charity to joint and severable liability for obligations of and funds received by Stroud District Council in connection with these arrangements. These liabilities are not quantifiable. ## 13 **STAFF COSTS** The Charity does not employ any staff. 18 ## STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ||Notes to the financial statements
for year end 31 March 2023| |---|---| |**FUNDS**
General Fund
Designated Funds
Restricted funds contributions
Restricted Property Fund
Bonds Mill Bridge Fund
Total Funds
Represented by:
General Fund
Designated Fund
RestrictedProperty Fund
Bonds Mill Bridge Fund|2023
As at 1 AprilIncoming
Outgoing
Funds
2022 as
resources
restated
for year
transferred
resources for during year
year
£
£
£
£
1,448,306
140,501
(217,095)
48,892
62,324
17,408
66,300
(66,300)
86,153
60,000
(9,990)
Funds as at
31 March
2023
£
1,420,604
79,732
86,153
50,010| ||1,656,783
206,801
(227,085)
2023
Tangible
Fixed
Current
Current
Assets
assets
liabilities
Total
£
£
£
£
1,344,884
111,473
(15,753)
1,440,604
79,732
79,732
86,153
86,153
50,010
50,010
1,431,037
241,215
(15,753)1,656,499
1,636,499| ## 14 **FUNDS** The Property Restricted fund arises from property which has been gifted to the Charity following acquisition using Heritage Lottery Funds. The Bonds Mill Bridge Fund arises from income donated towards the future repair and maintenance costs of Bonds Mill Bridge. The Board has three designated funds. The first has been designated for potential income generation from exploiting the value of extracted silt. The second is for funds to mitigate against unrecoverable accidental losses at Dudbridge Hydro Scheme. The third is a fund designed to build up sufficient funds over the next four decades to ensure the company has sufficient reserves to enable it to meet major outgoings on lock gate replacements. 19 STROUD VALLEYS CANAL COMPANY Notes to the financial statements for year end 31 March 2023 ## 15 **TRANSACTIONS WITH DIRECTORS AND RELATED PARTIES** During the year, the company reimbursed expenses to directors as follows: John Beatty £248.20 (2022 - £109.95) John Twydell £Nil (2022 - £188. 76) ## **Cotswold Canals Trust** Matthew Lee and Kenneth Burgin are both directors of Cotswold Canals Trust. Cotswold Canals Trust provides grants to the company to enable it to carry out its work. The Trust is a Charitable organisation, and as such the Trustees do not gain from any transaction. Voluntary services were provided by members of the Trust at no cost to the Charity, other than a small amount of petty cash expenditure required by volunteers which was reimbursed by Stroud Valleys Canal Company to the volunteers. ## **Company of Proprietors of the Stroudwater Navigation.** Ken Burgin was a Director of the Company of Proprietors of the Stroudwater Navigation during the year. ## **16 PUBLIC BENEFIT** The Charity is a public benefit in that it is restoring the Thames & Severn Canal and the Stroudwater Canal for the benefit of canal users and towpath users. ## **17 CONTROL** The charitable company is controlled by its Board of Trustees. 20