FURNESS RAILWAY TRUST Rewtered Charlty No. 1163or3 Trustees, Annual Report and Accounts 2021 FURNESS RAILWAY TRUST (Registered Charity No. 1163073) Address for correspondence: Meadowside, 105, Station Road, Cark-in-cartmel, Grange-over-sands, Cumbria LAii 7NY Annual Report of the Trustees for 2021 i. Governance and AdMinist￿tion The business of the Furness Railway Trust, a Charitable Incorporated Organisation (CIO), is managed by Trustees in aecordanee with a constitution approved by the Charity Commission. The Chairrnan is responsible for coordinating the day to day management of the affairs of the Trust. One third of the Trustees retire at each Annual General Meeting, in accordance with the constitution. A briefing doeument is given to new Trustees, which oudines the history of the Trjst and its current obligations. The document also details the reS￿nSIbIlItieS of Trustees as defined by the Charity Commission. The Trustees meet on a number of occasions throughout the year in order to manage the Tr￿￿t'S affairs and to agree required courses of action, The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: ALcounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued on the 14th July 2014, Finaneial Reporting Standard 102, and with the Charities Act 2011. The Trust'8 bafjker is The Co-operative Bank, PO Box 250, Southway* Skelmersdale fvN8 6wr. The Trust's Independent Examiner is J. Priestley ACMA, CGMA, 24 Scarborough Road, St. Annes, Lytham St. Annes, Laneashire FY8 3RS 2. Trustees and Commlttee Members The follnwing were the apFK)inted Thistees of the Furness Railway Trust during 2021: Brewer J. Dixon J.M. Kay Middleton T.D. Owen (Chairman) A.M. Rigg D.A Rimmer N.R. Smith P. van Zeller The above Trustees were responsible for preparing and approving this rcport. Pag¢ l of4 3. Objectives and Activities A sllmn￿ry ofthe Object and Powers of the Fllrness Railway Trust is attaehed as Appendix A at the end of this report. The prineipal activities of the Furness Railway (FRT) during 2021 were the acquisition, restoration and operation of historic iterns of rolling stock, The Trustees worked to address the Eong terni objective of the establishment of a railway museum, with appropriate faeilities for the display, storage and restoration of railway rollRng stock and associated equipment. In shaping the Trust's objectives, the Trustees gave due eonsideration to the Charity Con]mi&gion's guidance on public benefit with the object of advaneing education through its work, both in the short and longer term. The Trustees also took into account the need to maximise publie aee&8sibility to Lts assets, some of which are unique and of major historical importan￿, induding affordability wherever possible. 4. Aehievements and Perfornwice The Covid-19 pandemiL continued to impact signifiLdntly on the Thist's activities and financial perforn]ance during 2021. There was a partial recovery in rolling stock hire in￿rne, with Hunslet 'Austerity' 0-6-oST locomotive Cumbria on hire to the Ernbsay & Bolton Abbey Steam Railway through the year, whllst former Great Western Railway 0-6-2T locomotive No. 5643 spent 2021 on hire to the East Lancashire Railway. The ten year overhaul at Preston of Furness Railway locomotive No. 20, Britain's olde8t working standard gauge steam locomotive, was completed in October 2021. The work had taken eonsiderably longer than was antieipated at the outset, because of the restriLtions imposed during the pandemic. The overhaul of Peckett locomotive 0-4-oST Caliban has also been delayed, but the end of the year saw the locomotive re-wheeled after the refurbishment of its axleboxes was o)mpleted. The long tenn restoration of former Great Western Railway 4-6-0 'Hall' cla8s locoinotivc No. 4979 Wootton Hall has continued, albeit alqo.8lowcd due to the pandemic. The completion ()f the rolling cha&8is for the tender after extensive work was a notable milestone, whilst new boiler dadding continued to be cut and fitted. The restnration of the Trust's diesel shunter 0-4-oDM Fluff was paused during the third lockdown but the ongoing fabrication of new steelwork for the superstructure continued for the rest of the year. The Trustees continue to search for a replacement engine, the original being beyond repair. The pandemic has delayed any start of the restoration of former Furness Railway locomotivc No. 25 of 1865, but work did resume on the ongoing overhaul of Great EasteTn Railway Royal Salaon No. 5, following the completion of work on Furness Railway No. 20. Initial work focused on repairs to the roof and its fittings. Throughout the pandemic, the priority ofthe Trustees has been to ensure the safety of the Trnst's volunteer workforL'e through undertaking statutory risk assessments and implementing Covid secure working practices. The Trustees are grateful to all the Trust's volunteers for their under.8tanding, acceptan and adherence to these procedures. The Trusteeq, annual Risks and Vulnerabilities Review had previously identified the need to attract more volunteers. Following a joint recruitment day with the Ribble Steam Railway. new volunteers were reeruited but further reeruitment is planned in 2022. All activities of the Furness Railway Trust are undertaken by volunteers. There are no paid staff employed by the TTr￿L Page2 of4 5. Financial Position Totsl incorne, at £42,269. was double that of 2020 when the COVID-19 lockdowns had a severe impact on heritage rdilway operations, but still well below the £72,091 of 2019. Rolling Stock Hire was almost three times greater than the previous year, refieeting the partial reowery in the leisure market seen during 2021. There was also a recovery in the income from fundraising aetiTrities such as the sales stand and the folk group Liue Steam. Given the defieit seen in 2020. and recognising the ongoing financial impact of the pandemic on finan￿s, the Trustees continued to be cautious with expenditure. Expenditure on iAKomotive Restordtion, Maintenanee and Repairs of £ii,M2 was one third of that incurred in 2020. ExtKnses of £102 Incu￿ed by two Tft￿tees in att¢ndm8 to on-hire lorA)motiv¢s were kindly gift aided back to the TnLsL Overall, with the total outgoings of £28.434, there was an ex￿8 of in(x)me over expenditure of £13,835, increasing net funds by that amount to £5141373. 6. Reserves Policy The Trusttts believe thaL d￿pIte the continuing difficulties caused by the pandemic, the Furness Railway Trust's Cu￿ent finances eontinue to be satisfactory. There is an ongoing Deed to maintain an appropriate level of reserves to provide for future overhauls of the Trust's operational I￿omotiveS and coaches. Fundraising will continue primarily for this pUr￿)se and also to fund the longer terni restoration projects. 7. Looklng Forward: COVID.19 and rislng ener&v costs It would appear that the leisure market still has sx)me way to go to resume pre-pandemic levels of activity. Further, rising global energy costs are impacting on coal and diesel pri￿￿, forcing increased costs on heritage railways which are now starting to cut back on some operations. It looks likely that there will be a continuing detrimentsl impact on income to the Trust, so expenditure controls will remain in pla￿ to ensure that reserv￿ are maintained for ￿tllre overhauls whibt allowing a measured level of progress on key r&8toration projects. The FRfs Trustcos will continue to pn)tert Trust's assets. finances and the health and wellbeing of its voluntccr worklorce during this challenging period oftime. Finally, the Trustees again wish record their gratebjl thanks to members and followers of the FRT for their continued suptM)rt and generosity during 2021. The Trustees declare that they have approfftl the Tr￿, Report aEK>ve. Tim Owen Neil Smith 5th April 202Z 5th April 2022 Pag¢ 3 of 4 Appendix A The object of the CIO is to establish a railway museum for the benefit of the public and the CIO has power to do anithing to further its object, in particular, the power to: (a) aequire and proSe￿e railway locomotives, railway carriages and other items of rollkng stock and as￿lated equipment, (b) restore and maintain sueh items. house them and put them on display; loan or hire them so that they may be used, if practicable, and make suitable arrangements for their Continued preservation as far as is possible. (e) sponsor the publication of books, articles ete. containing inforn)ation about these items and rolling stock and railways generally, and otherwise to promote interest in these subjects. (d) Proeure contributions to the CIO by personal or written appeals, public meetings or otherwise. (e) employ and remunerate such staff as are necessary for carrying out the work of the CIO. (e) buy, take on lease or in exchange, hire or othermrise acquire any property and to maintain and equip it for use. (g) sell, lease or otherwi8e dispose of all or any part of the property belonging to the CIO. (h) borrow money and to charge the whole or any part of its property as security for the repayment of the money borrowed. Pag¢4 of4 FURNESS RAILWAY TRUST Règititerod Charity No. 1163073 Accounts for the 12 Months Ended 31st December 2021 ststement of Financial Activities 2021 Unwtrict•d Fund8 2020 Total Funds Notes INCOMING RESOURCES In¢¢)mlng R¢•ourc 3 Inc¢)mo and Endowm•nts from: 4 DOnatiOn￿LegaC￿e$ and Tax Re¢ov8rnbki 5 Char*8ble ActNthe8 6 Other Trading ActNiti•8 7 Invoslments other Totsl In¢omlng R••our¢ 8,323 33,202 739 9,818 11,018 118 42,269 L••• RESOURCES EXPENDED 8 Exp•ndlturn on: 9 Raislng Fund8 10 Charitable Activitie8 11 Govemaneo Totsl Ro•OU￿•S Expond•d 816 27,401 217 28,434 349 47,132 218 47,699 Net In¢om•llExp•ndltur•l 13 Trnnsfers Betr￿8n fvnd8 N•t PlkThvm•nt In Pund• R•conclll*tlon al Fund• Totsl Fund• Br(¥ught Forward $00,538 527,249 TOL91 Fund• Carrfed Forward 514,373 500,5 Pwl FURNESS RAILWAY TRUST R¢gl8tsr•d Chaiity Na 1163073 Notè8 Balance Sheet as at 31st December 2021 2021 UnYe8trSct•d Fund¥ 2020 Totsl Funds Flxed A••et•: 13 Tangible Assets 14 Heritage Assets Total Flxed Asso1• 189.020 106,296 295,316 195,426 106,296 301,722 Curront A￿•ts: 15 Stock 16 D8btors Cash at Bank Cash in Hand Totsl Currnnt Au•t• 1,848 21,554 206,355 60 229.817 2,038 6,272 199,367 60 207.737 17 Credltorn: amounts due wthin one yr. Not Currnnt Au•t•llLlabllltl8•) Total As•et• le88 Curr•nt Ll•bllltl 8.150 221,667 6.022 201,716 516.983 17 Credltorn: amounts due after one yr. (2.610) (2,899) Totsl Net AsMt• 514 373 500,538 Fund• of th• Charlty: Total Funds Brought Forward Add Net Incoming Resources 500.538 13.835 527.249 126.711) Total Fund• 40 at 31.12.2021 514 373 Neil Smith Chalm*n 5th April 2022 5th April 2022 Page 2 FURNESS RAILWAY TRUST Registered Cbarity No. 1163073 Notes to the Accounts -12 Months Ended 31 st December 2021 Note I Bas18 of Accountlng The accounts are for the sixth full year of opération of the new Charitable Incorporated Organi8alion FuTnes8 Raihyay Trust 1163073 whid) took ovér th& a￿ets and operation8 of the unincorporated Furn888 RalhN8y Trust Registered Charity 1005211 from the 1st De¢embeT 2015. Th• a¢¢ounls have been prepared in accordance wlth the Statgm$nl of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in o¢¢ord8nce with tho Fin8ncial Réporting Standard applicable In the UK and Republic of Ireland {FRS1021 Issueil on 16th July 2014, Financlal Rtrportlng Standard 102, and with the Charities 2011. Th• 8c¢ounls have been Prepared on thè basis that th¥ unin¢orporaled and CIO charitie8 have m8rge(I, as defined In the Slalemont of Recommended Pr8CtIcè. These accounts have been prepared under the historical cost convention wlth item8 recognisod al cost or Ir8na¢tion value unless othe￿iSe staled in the r8levant notgslsl to thésè accounts. The Furness Rallway Trust con8111ules a publlc benefft entlly a8 defined by FRS 102 Tha8e aCcA￿nIS have been prepared on the ba818 that the Fumes8 Raithy Trust Is a golng con¢•rn after taking into account the Current and gntlelp8t•d l*vg1s of •ctivity, Note 2 Accountlng Pollcy Incom• Incomlng R68our¢•8, indudlng grants, are accounlod for on a rec&lvabl8 ba818. The v01ue of don8l&d good8 Is recogn18ed only on Sale b8¢au8e of th& prgcticalilias of measuring the volue of Such goods. Goods donated for ongoing u80 by th• charity aro r8cognl$gd as t8n9lble a$s•l$ and Induded in the Slalement of Financial Actlvities as Incoming resouces whan rac&lv8blo. The value of any voluntary help recelvedlg not Induded In the accounts but is d88crib8d in th8 Tw$l¥¥$' Annual Report, Exp•ndltura R8sourc8s Expen¢Je ffly al*rfkn'. ha￿ b•sn m￿. or (21 *) **l¢h, In my c¢thb)n. str•x*l bg In to •nat4• a u1thrn￿1rwj ol a(￿Unts to bo roach￿1. Sign8d.. Nam•'. J. Prf•sl* ACMA. CGkiA