## FRIENDS OFCHATHAMTRACTION **Reports and Accounts Year ended 31[st] December 2022** **Charity number** **1174323** ## **The Friends of Chatham Traction** ## **Reports and Accounts Year ended 31[st] December 2022** ||**Contents**|| |---|---|---| |||Page| |Legal and administrative information||3| |Report of the Chairman||4-5| |Report of the Trustees||6-7| |Independent Examiner’s Report||8| |Financial Notes||9| |Receipts and Payments Account||10| |Balance Sheet||11| Page 2 ## **The Friends of Chatham Traction** ## **Legal and administrative information** ## **Constitution** The Friends of Chatham Traction is a trust founded by a deed dated 24[th] March 2007 and governed by a constitution dated in September 2009, which has been amended in August 2017 with the status of a Charitable Incorporated Organisation being adopted and approved by the Charity Commission with effect from that date. ## **Principal address** The principal address for correspondence is that of the Secretary M Hodges at 8 Pier Avenue, Whitstable, Kent, CT5 2HQ. For matters concerning membership or subscriptions please see the website for contact names. ## **Trustees** The trustees who have served during the year ended 31[st] December 2022 are as follows: Richard Bourne Norman Kemp Richard Ratcliffe Wendy Mesher Malcolm Spalding Paul Baker (stood down March 2022) ## **Officers and committee** Officers who have served through the period of the accounts are: President David Swann Chairman Richard Bourne Vice Chairman Wendy Mesher Secretary Mike Hodges The committee comprises the trustees and officers, listed above, with Janet Dyjak acting as Book Keeper. Phil Gates, Ian Marsh and Richard Lewis have been working with the committee during the year as volunteers. ## **Bankers** The bankers to the charity are: CAF Bank Ltd, 25 Kings Hill, West Malling, Kent, ME19 4JQ ## **Independent Examiner** J Croucher Esq. 31 Cecil Avenue Gillingham Kent ME8 6EH Page 3 ## **The Friends of Chatham Traction** ## **Chair Report for 2022** Throughout the year the priority has continued to be to make GKE 68 mobile. However physical work on the bus has run alongside many “soft” issues, such as seeking a route for introducing the Medway Heritage Bus into the community and establishing the necessary scope of regulatory compliance relative to proposed uses of the bus. ## **FoCT Organisation and Governance** The Friends Trustee count was reduced in the spring as a result of Paul Baker’s decision to retire. Thanks are due to Paul for his input as a Trustee, particularly on injecting discipline into ensuring resources are available to match predicted expenditure. Secretary duties continue to be covered by Mike Hodges. Covid restrictions continued to prevent face-to-face meetings of the Committee. Use of Zoom for both formal monthly meetings and for weekly sessions with informal discussion of wider issues has become established. Review of our adherence to the Charity Commission’s Charity Governance Code’s principles has continued. The seven principles are covered individually as agenda items on selected monthly committee meetings. ## **Funding** The largest single amount of funding this year was the £2000 received from BAE Systems at Rochester as part of their community funding for local charities with a STEM content. This money is earmarked for the first phase of our shift towards building contacts with local educational bodies and personnel.VAT recovery and Gift Aid payments on subscriptions and donations provided a higher proportion of income this year. Special thanks are due to those who have donated sums in excess of their normal subscriptions, thus conveying extra desire to see the bus on the road. Sales at events continue to provide modest sums. A balance forecast is now prepared monthly to allow regulation of funds against remaining expenditure on the restoration. The principal outgoings still to be met are for the balance of the upholstery cost, due on completion, and an estimated four-figure sum for the special gearbox cover casting for the lower deck floor. We currently have sufficient funds to meet committed expenditure. ## **Progress with GKE 68** Our initial assessment of the bus when we took ownership in 2009 had to decide whether to progress the bodywork restoration on the assumption that the chassis would be OK or vice versa. On inspection and drawing on experience of others it was clear that the bodywork was the greater task by some distance. The bus had been made driveable, at least across a yard, by previous custodian Paul Winter. So, if the body could be sorted then the chassis could follow. This wasn’t to say that all was well with the mechanicals, but clearly there was a more sound basis, and the restoration has proceeded that way. We’ve been very fortunate to have the services of Ian Marsh and, more recently, of James Hodgson to work on this area. Ian has been on board from the beginning, and was involved with the bus as far back as its early preservation in the 1970s. By contrast, James, an experienced car restorer, was a casual visitor to the Faversham Transport Festival in 2019 where he was attracted by the bus. There has during the year been much attention to mechanical details and some high-quality work on the recovery of worn components. Work on the reinstatement of cab controls and the installation of electrical wiring for the operationally essential starting and lighting functions continues. Page 4 Upholstery of the seats is the task of South West Upholstery in Bristol. All material was made available and the “approval” first-off cushion and back squab provided in September for our examination and comment. An issue arose around stretching of the new embossed leather trim when pulled around tight radii. This was resolved amicably between SWU and Connolly’s the leather supplier without further cost. Final detailing and painting of the bus will represent the final stages. ## **Events** Relaxation in Covid-related concerns allowed a return in March to an AGM as a traditional gathering. The Royal Engineers Museum in Brompton served as the venue. Although slightly expensive it was close to bus routes and provided access to the in-house café and a very comfortable meeting room. A FoCT presentation was amongst the schedule of talks at the South East Bus Festival in April, supporting our usual presence amongst the stands in the Emson building. A talk on the Friends’ purposes and activities was given to the Chatham Historical Society in June. Attendance at Chatham Dockyard’s 40s Weekend in September saw a change of change of “face”. Once again located in the Smithery courtyard we this time chose a space near the main doorway. Relying only on the display cabinet and some wall displays to provide our background, we were thus able could talk to visitors directly as they moved in or out of the courtyard. October saw an attendance at BAE Systems’ “Community Investment Showcase”, where local charities who have received BAE funding could display their aims for the benefit of any BAE employees who might be interested in providing support. ## **Staying connected** Updates have continued to be the principal means of communication with members and supporters, three having been despatched during the year. Our other more general missive, Connecting Service, ran out of material, however. Issue 13 appeared at Christmas 2021, and it was a full 12 months before the next one appeared. More material has since become available, and some more still could see further issues, probably with a broader scope in future. ## **Appreciation** As always, thanks are due to Members, supporters, donors, volunteers, restorers, Secretary Mike and book-keeper Janet for another year of progress towards the Medway Heritage Bus. A mention too for our Financial Examiner John Croucher. The number of our contact addressees is still holding up at around 250. It’s a real source of encouragement to know that’s the case despite the continuing wait for the Big Event of selfpowered movement. Other Chatham-focussed local heritage projects may reflect some attention to our old Medway workhorse. The Arches Local project to produce a communitydriven local plan for the future is due to be completed in 2023. This exercise looked specifically at the Chatham Town Hall – Luton corridor, very well trodden in the past by the Traction. Lastly a mention for Norman Kemp and his Nu-Venture operation. Were it not for the provision at no cost to us of a location for the bus in ideal conditions our financial position alone would be in a very different state. The contribution in kind that this represents has helped all our successful funding applications and given much peace of mind. Our thanks to Norman, Chris Jenkinson and all the folks at Aylesford. ## _**Richard Bourne, January 2023**_ Page 5 ## **The Friends of Chatham Traction** ## **Report of the Trustees for the year ended 31[st] December 2022** The trustees are pleased to present their report along with the financial statements of the charity for the year ended 31[st] December 2022. The financial statements have been prepared in accordance with the accounting policies set out below and on page 7 and which comply with the charity’s trust deed and applicable law. ## **Objects and Activities of the Charity** The Friends of Chatham Traction is a trust founded by a deed dated 24[th] March 2007 and governed by a constitution adopted by a meeting of members held on that date which was amended and approved on 9[th] September 2009. This document was revised in August 2017 with the status of a Charitable Incorporated Organisation being adopted and approved by the Charity Commission with effect from that date. It is a registered charity, number 1174323. The objects of the Charity are, firstly the acquisition and preservation of the 1939 doubledeck bus registered GKE 68 together with any associated spares, tools and other associated items and thereafter maintain it for the public benefit. Secondly, demonstrating for the public benefit the role played by the enterprise of the Chatham and District Traction Company and its predecessors and successors in serving the transport needs of the Medway community and thereby enhancing learning, cultural tourism and citizenship opportunities in the area. ## **Organisation** The trustees who have served during the year and since the year end are set out on page 3. The constitution provides that the organisation is to be administered by an Executive Committee comprised of the officers elected by the membership at the Annual General Meeting with such additional advisors who may be asked to assist the committee. ## **Investment Policy** There are no restrictions on the charity’s power to invest, within an overall policy to invest in low and medium risk investments. The investment strategy will be set by the trustees to take account of the income and capital requirements of the organisation. ## **Reserves Policy** It is the policy of the charity to maintain unrestricted funds which are the free reserves of the charity at a level that provides an amount sufficient to maintain solvency at all times. ## **Risk Management** The major risks to which the charity is exposed have been reviewed and systems have been established to mitigate those risks. Page 6 ## **The Friends of Chatham Traction** **Report of the trustees for the year ended 31[st] December 2022 (continued)** ## **Trustees’ responsibilities in relation to the financial statements** Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the trustees are required to: 1) Select suitable accounting policies and then apply them consistently 2) Make judgements and estimates that are reasonable and prudent 3) State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements 4) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## Authorised and signed on behalf of the trustees ## **Richard Bourne** ## **January 2023** Page 7 ## **The Friends of Chatham Traction** ## **Independent Examiner’s report to the Trustees** I report on the accounts of the Trust for the year ended 31[st] December 2022 which are set out on pages 10 and 11. ## **Respective responsibilities of trustees and examiner** The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to: Examine the accounts under section 145 of the 2011 Act; To follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; To state whether any particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** In connection with my examination no matter has come to my attention which gives me reasonable cause to believe that in any material respect the requirements to keep accounting records in accordance with section 130 of the 2011 Act and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met. Signed Dated ## J. Croucher 31[st] January 2023 ------------------------------ -------------------------------J Croucher 31 Cecil Avenue Gillingham Kent ME8 6EH Page 8 ## **The Friends of Chatham Traction** ## **Financial Notes, year ended 31[st] December 2022** The basis for the preparation of these accounts continues in line with the previous year with income and expenditure included on a “cash” basis except where a significant adjustment arises for a particular category of expenditure. In the year under review the heading affected is Insurance paid in advance (for the vehicle and other risks). No provision has been made for the main contractor as all work is now completed. No invoices are outstanding. Bookkeeping functions are continuing to be carried out by Janet Dyjak, acting as FoCT’s agent. Banking facilities remain with CAF Bank. Administration costs are 4% of our income, as in the previous year. The Income and Expenditure Account shows a surplus in the year amounting to £11586 as the main restoration work has now been completed and consequently the cash funds remaining at the year-end have increased to £13231. A grant of £2000 from BAE systems, awarded in spring 2022, is ring fenced for actions to develop links with the community and STEM (science, technology, engineering, and mathematics) with the balance going towards the completion of the restoration. To facilitate the completion of the main restoration work short term loans of £9000 were received from members, of which £2000 has been repaid in the year. Detailed costings for the completion of the restoration are in place and fundraising opportunities are being investigated. Wendy Mesher Page 9 ## |||Yeor|ending3tDecember|2O2?|| |---|---|---|---|---|---| ||||Other||All furds| ||||designoted||Yearended 2O21| |||Generalfund|funds|Allfunds|€43,830.O0| |Recaipfs|||||| |Donalions under6iftAid declarotions||810,246.00||f,10,246.A0|Ela,469.5A| |Donotlonswithout6iffAid declarations||f1,968.00||f.1,968.A0|e 3,514.00| |LotteryDonotions||€,105.50||€105.50|€0.00| |Crowdfundingoppeolwithout6iflAid declarations||€0.00||€0.00|€000| |Donoiionsfromnonsubscribers notexceedingfl100|645DS|153.50||€53.50|Eg2.7A| |Gronftowordscostsoffunding||€2,0c0.00||€2,000.00|€0.00| |6iftAidtoxrepoyments||L2,971.72||82,971.72|f.4,543.36| |Sundry soles including solesofproduciincome||f.104.21||f.104.?1|12?6.33| |Bonkintarest||€-11.78||.L11.78|€0.00| |Totolreceipts||f.17.46A.71|€0.00|E17,460.71|f23,9?5.89| |Payments|||||| |Administrotion - printing,postoge,stotioneryond bookkeeping||8823.29||f.8?3.?9|L1,078.52| |Bankcharges ondfees||€81.00||€81.00|l96.OO| |Publicity||f.170.OO|||f.?13.36| |fnsurance||fl,28A.66|||-1,280.66|€806.s5| |Subscriptionstomutuolinterest societies||E72.OO|||€85.00| |VolunteerExpenses-Trovel||L357.6A|||| |Totolofodministralion ond overhaod costs||82,784.55|€0.00||f,2,?79.?3| |Excessofreceipts over odminisfrotionpoymenfsintheyeor||f14,676.16|€0.00|814,676.16|f,21,646.66| |Bus6KE68 rzstorotroncnd mointenonce costs||E3,089.97|||E48,5AA 62| |Excessofincomeover expenditure intheyear||€'11,586.1|f0.00|fl1.586|| |Excessofexperdifu!"coverrincomcintheyeor|||||-f,26,853.96| ## ## ## ## ## |Asat31December|?022|Asat31 December 2021| |---|---|---| |f.13,231.56||f952.54| |f,1,718.33||f.l,718.33| |u547.69||L579.A5| |€0.00||eo.oo| |f.516.54|816,014.12|| |10.00||€0.00| |-€7,000.00|-€,7,000.00|| ||f9,o14.1?|| ## ##