Registered number: 07598363
Charity number: 1144738
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report and financial statements for the year ended 30 April 2023
The B17 Steam Locomotive Trust (A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Trustees' report | 2 - 8 |
| Independent examiner's report | 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Notes to the financial statements | 12 - 18 |
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Reference and administrative details of the company, its trustees and advisers for the year ended 30 April 2023
Trustees
B E Hall H A Mullens J A Peat (resigned 10 January 2023) L Sampson (resigned 10 January 2023)
P Wright J H Pearson A L Warren
Company registered number
07598363
Charity registered number
1144738
Registered office
171 Clifton Road, Shefford, Bedfordshire, SG17 5AG
Page 1
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report for the year ended 30 April 2023
The Trustees present their annual report together with the financial statements of the company The B17 Steam Locomotive Trust for the year ended 30 April 2023. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the 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 (FRS 102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective 1 January 2015).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Objectives and Activities
a. Policies and objectives
The principle objects of the company are restricted to the following:
a) To build, preserve, operate, maintain and exhibit for public benefit for educational and institutional purposes locomotives of historic or scientific importance built by, acquired by, or leased or otherwise made available to the company and in particular a London and North Eastern Railway, Class B17 Express Passenger Locomotive.
b) To use the trust property to promote public knowledge, appreciation and understanding of the historical, educational, scientific and cultural aspects of the trust property, with particular regard to its historical significance, for the benefit of the public.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit and in particular to its supplementary public benefit guidance on running a charity (PB2).
b. Strategies for achieving objectives
Collaborative working with other new build steam locomotive groups continued to discuss and agree a structured content defining each locomotive in accordance with Railway Group Standards and subject to guidance provided by representatives of the Railway Assessment Authority. Categorised as heritage vehicles, the relevant locomotive applicable to each project requires documentary evidence providing: a detailed risk assessment, a certification and registration document and a hazard matrix. These formal documents were to be maintained during the life of each project to describe both the design and build standard including modifications embodied. Operating procedures adopted by each project for Engineering Design and Manufacturing activities inclusive of experiences with suppliers were debated. Given changes prevalent in the manufacturing sector in recent times it was clear that greater benefit can be obtained by each project team progressively working toward preferred sources of supply. Derived from shared experiences, this will identify suppliers with respect to the different types of component and manufacturing processes used. Additional information will list company accreditation, skill competencies, material certification and quality assurance records as well as pricing and lead times. Participation in joint meetings is now established within the annual calendar with cross project team working reviewing topical issues that may arise from within the Engineering and Manufacturing sectors which have particular relevance in the development and build of heritage steam locomotives today.
‘Made in Sheffield.’ Operating from our Sheffield base of CTL Seal Ltd; this accredited engineering company provides top class manufacturing services under contract to the B17 project. Other accredited Companies based within the wider City area also provide high quality parts to the project. Our policy of working with accredited suppliers having competent and capable staff and using proven technology and processes provides consistent assurance to quality, product compliance and reliability in accordance with rail authority standards and safety requirement on the modern railway. As a demonstration of this commitment to use high quality products, the charity made an application seeking recognition under “The Made in Sheffield” Quality Mark. It is pleasing to report that ‘The Made in Sheffield Board’ approved our submission and granted permission during November 2022 that the charity may use the prestigious ‘Made in Sheffield’ Quality Mark. The ‘Made in Sheffield’ Quality Mark now forms an important part in the work conducted to further the charity’s objectives and promotional events.
Page 2
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
The Community Plan describes the charity’s activities derived from The Spirit of Sandringham project for achieving public benefit. This offers unique learning opportunities for young people in Secondary Schools, Higher Education and Vocational Training with an emphasis on developing problem solving abilities and practical skills with respect to engineering and manufacturing technologies. Experience in coping with real life situations may also be developed including the recognition that greater benefit may be obtained by working together as cooperative teams.
c. Activities for achieving objectives
It is pleasing to report the positive responses received to certain grant applications made to Grant Making Trusts and Foundations attributed to Sheffield and the surrounding area. The content of each application was constructed to comply with defined terms and conditions, followed by a comprehensive response to questions about the project objectives and benefits afforded by the project to the local community. Some questions arose at initial assessment from an adjudicating panel on behalf of each Benefactor which were answered. One Trust specifically requested a site visit by their representative to view the mainframe structure and obtain greater understanding of the project plan. Subsequently, notification of awards for three separate grants was received and each was formally acknowledged. Certain other grant applications remain ‘open’ where replies are still awaited whilst further grant applications involving other sources are being considered.
Two separate events were arranged during the period for members to visit and view the mainframe assembly and various components displayed at our project base of CTL Seal Ltd, in Sheffield.
11th Annual General Meeting of The B17 Steam Locomotive Trust held on Saturday 8th October 2022. Members and invited guests attending in person were accommodated in part of the Assembly Shop for the meeting. Home based members who were unable to travel to the venue, were able to participate via an online communication link with separate video direct from the meeting. Members present were able to view the hardware on display prior to and after the meeting including nearby workshops and facilities on site. Assistance provided in advance of the meeting and on the day by the management and staff of CTL Seal Ltd, was acknowledged with our thanks.
Public Open Day held on Saturday 15th April 2023. This was a collaborative event with a second steam locomotive group who were creating another new locomotive in The Assembly Shop. Publicity advertising the event via the local news media including TV and supplemented with posters around the locality preceded this event. Attendance was high and certainly exceeded expectations to make this a busy and memorable day. The help and support provided by the management and staff of CTL Seal Ltd, some of whom attended on the day was acknowledged with our thanks.
Membership recruitment during the period recorded a steady growth of 10 new members with the end result being a final total of 215. The 61673 Constructors Club, originally formed in 2018, where cumulative funds specifically support the manufacturing and construction activities in accordance with the project plan, grew from 54 to 59 certificates during the period under review. To both our new and all existing members we offer our grateful thanks for their kind contributions in support of the Spirit of Sandringham project during the year.
Engineering activities during the period continue with the planned ‘fabricated’ design for each of the three cylinders originally made of cast iron and the saddle originally produced as a steel casting. This will save substantial costs for new patterns plus detailed design work and pattern making for each item. Two design improvements have been embodied, firstly to reduce bends in steam passages to enhance steamflow and second to increase steam valve diameter thereby improving efficiency. Manufacturing drawings produced defining materials, order of assembly, welding including inspection/test and final machining are subject to design review and eventual sign off.
Design work has commenced on both the Bogie and Smokebox. The Bogie incorporates a redesigned chassis of fabricated construction and includes improved load distribution to equalise the overall mass to each pair of left and right hand bogie wheels including corresponding bearing springs and side control springs. Timken tapered roller bearings and Cannonboxes have been introduced to improve performance, reliability and ease maintenance compared with the original plain axleboxes with white metalled bearings. The roller bearings are already in held in stock and the Cannonbox pattern is available from which steel castings will be produced. The Cannonbox pattern has been kindly loaned for this purpose courtesy of the A1 Steam Locomotive Trust. The original 12 spoke bogie wheel is retained but with certain dimensional changes associated with the wheel rim and hub to accommodate the overall length of the Cannonbox, to house the roller bearings. A new wooden pattern representing the revised 12 spoke bogie wheel design is now available and was kindly funded by a B17 Member whose generosity is gratefully acknowledged. Formal approval of the revised bogie wheel design by the Rail
Page 3
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
Assessment Authority will enable each of the four bogie wheels to be manufactured by William Cook Cast Products (Sheffield.) Bogie axles have been ordered with Railway Wheelset and Brake (Sheffield.) The Smokebox design will be compatible with the 100A boiler based upon the LNER 1940s design using original drawings. Corten Steel having superior anti-corrosion properties will be used for major parts of this assembly. A CAD model derived from the original smokebox arrangement drawing is well advanced from which initial manufacturing drawings of parts are being created thus providing scope for first enquiries to be pursued with manufacturers. Observations and recommendations arising from the previous smokebox engineering design investigation, conducted jointly with students from The University of Sheffield will be included in the design assessment.
d. Main activities undertaken to further the charity's purposes for the public benefit
The combined Education and Learning programme based upon the Spirit of Sandringham project is designed for young people in Secondary Schools at Key Stage 4 Science and ‘A’ Level Design & Technology, now approved for use in schools in England. In addition, two way working relationships with students and their Tutors at The University of Sheffield provides tertiary education in the Sheffield area. Experiences relating to each level is summarised as follows:-
Secondary Schools – Learning Support Materials themed on the Spirit of Sandringham project created jointly by Larry Sampson (B17) and representatives from the STEM Foundation for GCSE Science and A Level Design and Technology, were introduced and tested by a small group of Schools in Essex on a trial basis from October 2018. This was with prior agreement from The Local Education Authority and HMI. Despite the obvious interruptions caused by Covid 19, performance data and teacher assessments accrued by late 2021/early 2022 was reviewed by representatives from STEM and HMI. Agreement was subsequently granted that the learning support materials (called Spotlight on Specifics) may be published for use in Secondary Schools in England. Three leading publishers currently hold these materials for release to interested schools. Present consensus however indicates that sustained inflationary pressures to School budgets as a result of rising costs currently determines the priorities for spend. Therefore Publishers are tending to withhold going to the market place for now. Their forecast appears to favour 2025 when Schools may have budgets to acquire the Spotlight on Specifics Learning Support Materials. Therefore monitoring of this situation will continue. Schools in the Sheffield Area have indicated an interest in these same materials through previous discussions on this subject.
University Training – Visits to view and discuss the current/future build status of the Spirit of Sandringham project at CTL Seal Ltd, have been made by two groups of students from the University of Sheffield during the period. In addition we have maintained our participation with the students in two different activities:-
RCAS – Members of the B17 Team were pleased to participate with a seat on the design review committee to help oversee the Sheffield entry for the Annual Railway Challenge, organised by the IMechEng. The B17 project sponsored minor parts on the new loco for the competition and in return the RCAS Team agreed to name their loco ‘Spirit of Sandringham.’ Ten teams entered the competition representing companies associated with the rail industry and universities were also included. Each demonstrated highly rated performances with the University of Sheffield Team achieving 4th place overall. The competition was held in Stapleford Park, Leicestershire and was attended by two members of the B17 Team.
Group Design Briefs – the 3rd Year Undergraduates undertake a Group Design exercise as the culmination of their Design work each year and B17 were again invited to write one of the design briefs having a direct association with the B17 construction project. To follow on from the successes of the previous two years, the subject this time was to appraise the current Firebox design to identify improvements in consideration but not limited to Thermodynamics, Heat Transfer, Safety and to include a design for a Rocking Grate that was never fitted to B17s in service. We believe this benefits both parties involved – the students are tasked with a real life problem and B17 gains benefit from new ideas and thoughts on the Project. We hope to continue into a 4th year and maintain mutual benefit obtained by virtue of the contributions between the parties involved.
Apprenticeships – Discussions continue with SEEVIC, HRA and Sheffield College in order to identify a workable package. Discussions have continued with HRA about their Apprenticeship scheme which is operated in conjunction with certain heritage railway centres and a number of colleges. In theory, there is no objection to expanding the scheme to include other HRA members. However, the financial climate at present means that no one is currently prepared to put finance up for expansion. Rather the opposite is forecast suggesting that the scheme may contract during 2023 and 2024.
Page 4
The B17 Steam Locomotive Trust (A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
e. Volunteers
During the period it became noticeable that attendance and revenues were reducing at both indoor and outdoor events where our voluntary teams normally participated by promoting and raising funds on behalf of the B17 project from amongst supporters, friends and visitors. This was attributed to rising day to day costs across all sectors of the public community, to effectively reduce disposable income available. Clearly these same difficulties similarly affected some of our volunteers but very fortunately all continued to provide their solid support which enabled our planned commitments to be met. It is pleasing to note that support and contributions provided by all volunteers and all of our members, supporters and friends has continued and has helped maintain the momentum of the B17 project. Our grateful thanks are extended to all those who kindly arranged and supported local fund raising events on behalf of B17.
Achievements and performance
a. Key financial performance indicators
For the period under review, the generosity of members, supporters and friends ensured that income achieved for the year established the grand sum of £174,045 including gift aid. This slight decrease of 3.7% compares with the previous year’s record total of (£180,777.) Contributions from raffle ticket sales after deducting the value of prizes and costs in support of the fourth ‘Grand Draw’ amounted to £1,690.66 and represents an approximate uplift of 1.1% compared with the previous year. The cost base for Engineering and Manufacturing sectors of industry remains high, being largely driven by premium energy costs. The lack of skilled manpower possessing the required proven skills and know how continues to lag pre pandemic competency levels. Here employment costs appear to have increased in an effort to attract new staff to fill job vacancies. Certain raw material types by virtue of size, form and mechanical properties have become scarce and in some cases are no longer available. Examples of non availability have affected common items such as fasteners produced from standard material types. Although this may be overcome by acquiring an alternative usually of a larger size etc, the mechanical properties must be carefully assessed to determine suitability. Experience has shown that in most cases machining alone may only be part of a solution. Importantly mechanical properties must be restored by special processing to achieve correct conditions for strength, resistance to wear and safety characteristics which are all crucial. This extra processing represents additional cost to the project. Excessive lead times have also continued influenced by demand outstripping supply for certain grades of material. Hence this introduces a scarcity factor that continues to maintain high prices and shortened validity periods for prices stated as just a few weeks, with very lengthy lead times to delivery as the only alternative. Transport costs remain a significant cost driver. Prudent management of funds has therefore continued to control the sourcing of components, machining, fabrications and mechanical assembly activities. Overseas sourcing of parts subject to special materials and special manufacturing processes continue to be committed via UK based subsidiaries but with lengthy lead times to delivery. William Cook Cast Products continue to be the prime supplier of steel castings to the project. CTL Seal Ltd, and other preferred sources will continue machining certain castings, produce components from raw material profiles and manufacture fabrications, to then be assembled to the frames using special fasteners. South Devon Railway Engineering Ltd, are the preferred supplier for the wheel/axle set assembly task including fitting tyres to wheels. A total of £217,619 was spent on the locomotive in the year, including design work.
The Trustees monitor the bank balance very closely and also take into consideration income trends and spend profiles to ensure that sufficient funds are available before commitments are made. The sum of £266,962 was held in the bank account as at 30th April 2023. This was to meet commitments on contracts already placed by purchase order or reserved for future items identified on the project programme. Fitting activities and the manufacture of parts planned in the coming financial year will be to complete a trial fit of Cannonboxes on to the mainframe and prepare parts for Wheel/Axle Set assemblies in readiness for final integration to eventually realise the rolling chassis. Commitments in support of the Suspension System (leaf springs,) Bogie Assembly and Smokebox will be pursued providing total costs for each remain affordable within available funding levels.
b. Review of activities
Amicable working relationships have continued to develop with the different levels of management and personnel at CTL Seal Ltd, in Sheffield as the B17 project has progressed. Increasing manufacturing requirements have been met by retaining some items on site at CTL Seal Ltd, whilst others were sourced with preferred sources elsewhere as a means of spreading the load to match capacity, capability and priority. This was conducted in cooperation with CTL Seal Ltd, site management. Cooperative working with members representing another steam locomotive project based on site proved beneficial to both
Page 5
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
teams by sharing ideas and solutions to both technical problems and practical difficulties. Planning and hosting joint events on site by both teams for educational and publicity purposes also worked well. This involved visits by students, followed by a special Open Day to engage with the general public and opportunities to explain project objectives to the media. Manufactured hardware and assembled mainframe structures on display demonstrated the stages of construction at each event. The permission and support freely provided by the management of CTL Seal Ltd, that helped ensure the success of these visits was acknowledged.
Our liaison with staff and students from the Faculty of Engineering at Sheffield University in the Railway Challenge involving performance and reliability testing of modern traction proved successful. Similarly, the Group Design Brief in conjunction with third year undergraduates focussed on the B17 firebox design, to identify design improvements in operating efficiency and safety may be feasible. A presentation of the work carried out and conclusions was exhibited at the University and attended by a member of the B17 Management Team. It is planned to continue these joint working relationships during next year.
Parts required to convert the static mainframe to a rolling chassis continue to progress toward completion. Those to be fitted to the static mainframe will be retained on site for that purpose by CTL Seal Ltd, staff. Certain items that make up Wheel/Axle set assemblies require the use of special equipment and skills. Parts in this category will be progressively delivered to SDRE Ltd, in readiness. Management reviews will maintain overall visibility of the inventory involved/allocated as part of the control of funding and lead times associated with the planned programme. Particular attention must also ensure that design compliance with Rail Authority Standards is consistently achieved thus providing a high level of assurance in product performance and safety which also embraces the manufacture, test and inspection of hardware.
Promotional events held at heritage railway centres and exhibitions hosted by our volunteers provide opportunities to meet the visiting public face to face. Informative displays highlight completed parts, illustrate new designs and appeal for funds in support of specific components. Branded items and railway memorabilia are available to purchase and publicity leaflets describe the B17 project. All are also shared online via our website and social media. However during the period, reduced attendances and revenues became noticeable. Conversations with visitors attributed this trend to the adverse impact of rising prices and inflation effecting communities, tending to reduce disposable income available. Nevertheless, we are grateful for the interest, support and good will shown by way of donations and purchases from the visiting public. In addition the charity received funds from a legacy, kindly bequeathed to us as part of the estate of a loyal member, who sadly passed away in September 2021. Further funds were awarded arising from three successful grant applications from Benefactors in Sheffield. For the year under review, funds realised by the year end totalled £174,045 and represents a significant contribution. This was made possible by the generous gifts from our members, supporters, friends and the general public which were all greatly appreciated and acknowledged with thanks.
c. Fundraising activities/Income generation
The majority of the funds are generated via regular monthly donations from members. The promotional events are a further substantial source of income and the main method for expanding the support base.
d. Investment policy and performance
The Trustees, having regard to the liquidity requirements of the Charity, have kept available funds in an instant access bank account.
Page 6
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
Financial review
a. Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
b. Reserves policy
The trustees have adopted a policy of conserving the reserves of the trust in a current account whilst they accumulate funds to enable future manufacture of the various parts to create the locomotive. The cash balance as at 30 April 2023 was £266,962 (2022: £303,331) .
c. Principal funding
Contributions from all of our subscribers and sponsors either in financial terms or in kind during the year of operation are acknowledged with our grateful thanks. During the same period the dedication and hard work demonstrated wholly by our volunteers similarly deserves thanks and recognition for their achievements. Total contributions in the year amounted to £174,045 (2022: £180,777) including gift aid of £10,867 (2022: £16,406) . This has resulted in total net assets as at 30 April 2023 of £826,694 (30 April 2022: £656,822) .
Structure, governance and management
a. Constitution
The company was incorporated on 11 April 2011. It is constituted as a charitable company limited by guarantee under Articles of Association and Memorandum of Association. The company is a registered charity number 1144738.
b. Method of appointment or election of Trustees
The management of the company is the responsibility of the Trustees (who are also Directors of the company) who are elected and co-opted under the terms of the Articles of Association. At each annual general meeting one-third of the directors or, if their number is not three or a multiple of three, the number nearest to one-third, must retire from office.
The directors may appoint a person who is willing to act to be a director. A director appointed by a resolution of the other directors must retire at the next annual general meeting and must not be taken into account in determining the directors who are to retire by rotation.
c. Organisational structure and decision making
The management organisation has remained small commensurate with the current functional roles and responsibilities required to drive the operation which has also been ably supported by a project steering group.
d. Risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Page 7
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Trustees' report (continued) for the year ended 30 April 2023
Plans for future periods
a. Future developments
Uncertainty and pressures upon the day to day cost of living through all sectors of the community are recognised and clearly are beyond our control. Nonetheless, we aim to continue the development and growth of the Spirit of Sandringham project in terms of recruiting members, attracting funds and driving construction forward. However the management control of finances must always ensure that sufficient funds are available prior to making commitments whilst also respecting and maintaining good relations with our members, supporters, friends and the general public upon whom we rely.
Members' liability
The members of the company guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up.
Trustees' responsibilities statement
The Trustees (who are also directors of The B17 Steam Locomotive Trust 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Trustees, on 3 September 2023 and signed on their behalf by:
B E Hall Trustee
J H Pearson Trustee
Page 8
The B17 Steam Locomotive Trust (A company limited by guarantee)
Independent examiner's report for the year ended 30 April 2023
Independent examiner's report to the Trustees of The B17 Steam Locomotive Trust (the 'company')
I report to the charity trustees on my examination of the accounts of the company for the year ended 30 April 2023.
Respective responsibilities of trustees and examiner
As the trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act").
Having satisfied myself that the 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 the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Scott Rouse FCA UHY Hacker Young
Dated: 4 October 2023
Page 9
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Statement of financial activities incorporating income and expenditure account for the year ended 30 April 2023
| Note Income from: Donations and legacies 2 Total income Expenditure on: Raising funds Other charitable activities Total expenditure 4 Net income before other recognised gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2023 £ 174,045 174,045 1,007 3,166 4,173 169,872 169,872 656,822 826,694 |
Total funds 2023 £ 174,045 174,045 1,007 3,166 4,173 169,872 169,872 656,822 826,694 |
Total funds 2022 £ 180,777 |
|---|---|---|---|
| 180,777 | |||
| 385 2,470 |
|||
| 2,855 | |||
| 177,922 177,922 478,900 |
|||
| 656,822 |
The notes on pages 12 to 18 form part of these financial statements.
Page 10
The B17 Steam Locomotive Trust
(A company limited by guarantee) Registered number: 07598363
Balance sheet as at 30 April 2023
| Note Fixed assets Intangible assets 8 Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors:amounts falling due within one year 11 Net current assets Net assets Charity Funds Unrestricted funds 12 Total funds |
£ 8,144 266,962 275,106 (11,144) |
2023 £ - 562,732 562,732 263,962 826,694 826,694 826,694 |
£ 10,439 303,331 313,770 (2,096) |
2022 £ - 345,148 |
|---|---|---|---|---|
| 345,148 311,674 |
||||
| 656,822 | ||||
| 656,822 | ||||
| 656,822 |
The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act.
The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 3 September 2023 and signed on their behalf, by:
B E Hall, Trustee
H A Mullens, Treasurer
The notes on pages 12 to 18 form part of these financial statements.
Page 11
The B17 Steam Locomotive Trust (A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The B17 Steam Locomotive Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Company status
The company is a company limited by guarantee. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
1.3 Going concern
The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast doubt about the ability of the company to continue as a going concern.
1.4 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.5 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.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Page 12
The B17 Steam Locomotive Trust (A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
1. Accounting policies (continued)
1.6 Intangible fixed assets and amortisation
Intangible assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment
Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following bases:
Trademarks
5 years straight line
1.7 Tangible fixed assets and depreciation
All assets costing more than £100 are capitalised.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities incorporating income and expenditure account.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Assets under construction - Nil - Office equipment 25% reducing balance
No depreciation is charged on assets under construction.
1.8 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.
1.9 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.
1.10 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
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The B17 Steam Locomotive Trust (A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
1. Accounting policies (continued)
1.11 Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.12 Taxation
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
1.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
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.
2. Income from donations and legacies
| Donations Legacies Gift aid Total donations and legacies Total 2022 |
Unrestricted funds 2023 £ 126,293 36,885 10,867 174,045 180,777 |
Total funds 2023 £ 126,293 36,885 10,867 174,045 180,777 |
Total funds 2022 £ 163,461 910 16,406 |
|---|---|---|---|
| 180,777 | |||
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The B17 Steam Locomotive Trust
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
3. Governance costs
| Unrestricted funds 2023 £ Independent examination fee 965 Office and computer 351 Insurance 183 Website and marketing 757 Processing fees for online donations 196 Raffle prizes 500 Depreciation - office equipment 214 3,166 |
Total funds 2022 £ 890 284 144 418 157 350 227 |
|---|---|
| 2,470 |
4. Analysis of expenditure by expenditure type
| Depreciation 2023 £ Expenditure on raising voluntary income - Costs of raising funds - Expenditure on governance 214 214 Total 2022 227 |
Other costs 2023 £ 1,007 1,007 2,952 3,959 2,628 |
Total 2023 £ 1,007 1,007 3,166 4,173 2,855 |
Total 2022 £ 385 |
|---|---|---|---|
| 385 2,470 |
|||
| 2,855 | |||
5. Net income/(expenditure)
This is stated after charging:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charity | 214 | 227 |
During the year, no Trustees received any remuneration (2022 - £NIL). During the year, no Trustees received any benefits in kind (2022 - £NIL). During the year, no Trustees received any reimbursement of expenses (2022 - £NIL).
6. Independent examiner's remuneration
The Independent Examiner's remuneration amounts to an Independent Examination fee of £965 (2022:£890) .
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The B17 Steam Locomotive Trust (A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
7. Staff costs
The company has no employees other than the Trustees, who did not receive any remuneration (2022 - £NIL) .
No employee received remuneration amounting to more than £60,000 in either year.
8. Intangible fixed assets
| Intangible fixed assets | |
|---|---|
| Cost At 1 May 2022 and 30 April 2023 Amortisation At 1 May 2022 and 30 April 2023 Carrying amount At 30 April 2023 At 30 April 2022 |
Trademarks £ 170 |
| 170 | |
| - | |
| - |
9. Tangible fixed assets
| Cost At 1 May 2022 Additions At 30 April 2023 Depreciation At 1 May 2022 Charge for the year At 30 April 2023 Net book value At 30 April 2023 At 30 April 2022 |
Assets under construction £ 344,467 217,618 562,085 - - - 562,085 344,467 |
Office equipment £ 1,326 180 1,506 645 214 859 647 681 |
Total £ 345,793 217,798 |
|---|---|---|---|
| 563,591 | |||
| 645 214 |
|||
| 859 | |||
| 562,732 | |||
| 345,148 |
Page 16
The B17 Steam Locomotive Trust
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
10. Debtors
| Debtors | ||
|---|---|---|
| Other debtors Prepayments and accrued income Creditors: Amounts falling due within one year Other loans Other creditors Accruals and deferred income |
2023 £ 7,053 1,091 8,144 2023 £ 9,000 1,179 965 11,144 |
2022 £ 9,642 797 |
| 10,439 | ||
| 2022 £ - 1,206 890 |
||
| 2,096 |
11. Creditors: Amounts falling due within one year
12. Statement of funds
Statement of funds - current year
| Designated funds Designated Funds General funds General Funds Total Unrestricted funds Total of funds |
Balance at 1 May 2022 £ 135,397 521,425 656,822 656,822 |
Income £ 78,455 95,590 174,045 174,045 |
Expenditure £ - (4,173) (4,173) (4,173) |
Transfers in/out Balance at 30 April 2023 £ £ (73,239) 140,613 73,239 686,081 - 826,694 - 826,694 |
Transfers in/out Balance at 30 April 2023 £ £ (73,239) 140,613 73,239 686,081 - 826,694 - 826,694 |
|---|---|---|---|---|---|
| 686,081 | |||||
| 826,694 | |||||
| 826,694 |
Designated funds represent donations received where the Donors have expressed a wish that the gifts are used for a specific purpose. Included in these donations are amounts towards the manufacture of various parts including 1 small boiler tube, 1 large flue tube, 4 small flue tubes, horn stays, spacers, springs, boiler appeal, nuts and bolts appeal, buffer refurbishment, rolling chasis and smokebox. Amounts received for the "spoke in my wheel campaign" and the roller bearing were utilised in the year.
Page 17
The B17 Steam Locomotive Trust (A company limited by guarantee)
Notes to the financial statements for the year ended 30 April 2023
12. Statement of funds (continued)
Statement of funds - prior year
| Statement of funds - prior year | |||||
|---|---|---|---|---|---|
| Designated Funds General Funds Total of funds |
Balance at 1 May 2021 £ 91,825 387,075 478,900 |
Income £ 49,330 131,447 180,777 |
Expenditure £ - (2,855) (2,855) |
Transfers in/out £ (5,758) 5,758 - |
Balance at 30 April 2022 £ 135,397 |
| 521,425 | |||||
| 656,822 |
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Analysis of net assets between funds - prior year Tangible fixed assets Current assets Creditors due within one year |
Unrestricted funds 2023 £ 562,733 275,106 (11,145) 826,694 Unrestricted funds 2022 £ 345,147 313,771 (2,096) 656,822 |
|---|---|
14. Capital commitments
At 30 April 2023 the company had capital commitments of £63,447 (30 April 2022: £ 190,362) which had been contracted for but not provided in these financial statements.
15. Related party transactions
There were no related party transactions in the year (2022: none) .
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