Charity Registration No: 1176818
## **Lancaster and Morecambe Model Engineering Society (2018)**
Accounts
Financial Year Ended 31 December 2021
Page 1
## **LANCASTER AND MORECAMBE MODEL ENGINEERING SOCIETY (2018)**
|**CONTENTS**||
|---|---|
|Charity Details|3|
|Trustee’s Report|4|
|Receipts and Payments Account|7|
|Statement of Assets and Liabilities|8|
|Tangible Fixed Assets and Liabilities|9|
|Declaration|9|
|Annex 1 Reserve Policy|10|
Page 2
## **LANCASTER AND MORECAMBE MODEL ENGINEERING SOCIETY (2018)**
## **CHARITY DETAILS**
**Trustees** Mr G M Brown (Chairman) Mr A Dixon Mr A Dunn Mr P Livesley (From 17 October 2021) Mr J McKay Mr G McQuire (From 17 October 2021) Mr B Mulholland Mr D Wilson Mr D C Wood **Charity Names** Lancaster and Morecambe Model Engineering Society (2018) Working name Lancaster and Morecambe Model Engineering Society **Charity registration number** 1176818 **Registered office** 22 Naworth Drive Carlisle CA3 0DD **Scrutineers** Mr Anthony Marshall Mr Richard Davey
Page 3
## **LANCASTER AND MORECAMBE MODEL ENGINEERING SOCIETY (2018)**
TRUSTEES REPORT FOR THE YEAR ENDED 31 December 2021
The trustees present their report and accounts for the year ended 31 December 2021, which have been prepared on a receipts and payments basis. The financial statements have been prepared in accordance with the charity’s constitution and applicable law.
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO) governed by its constitution dated 7 October 2018. The charity was registered on 24 January 2018.
The Trustees who have held office during the year are shown on page 3.
## **Objectives and activities**
The charity is a model engineering society based at Cinderbarrow picnic site at Yealand Redmayne, Carnforth, Lancashire. The charity operates a miniature railway that is open to the public for rides on Sundays and Bank Holidays from spring to autumn. The charity also holds events to develop interest in engineering projects.
The object of the charity is the advancement of public education in engineering through the construction and operation of models of engineering, the provision of talks, public exhibitions, demonstrations and by providing facilities for construction, development and running engineering models.
In establishing the objects and activities of the charity the Trustees have had due regard to the Charity Commission guidance on public benefit.
## **Appointments of trustees**
The charity is required to have at least three trustees. Trustees are appointed by the members at the annual general meeting or at any time as required. New trustees are provided with a copy of the constitution and a copy of the latest trustees’ annual report and statement of accounts.
## **Achievements and performance**
The Society planned a range of meetings and events at the beginning of 2021. Although Covid-19 restrictions were lifted part way through the year, it was thought prudent to suspend resumption of our regular meetings as it would be difficult to maintain social distancing in a confined space.
Passenger trains were resumed during the year following introduction of screens to the carriages and implementation of thorough disinfection procedures.
Members also carried out significant work in the construction of a new carriage shed to protect our valuable assets. The new carriage shed is now complete and fully operational. Another major project of the construction of a Gauge 1 railway track for the operation of smaller models was also undertaken and completed. Work has now started on replacement of the main track which has deteriorated severely over the many years of our operation. Other capital projects included a considerable investment in rolling stock. This includes a new works locomotive to assist with track work and significant investment in passenger carriages by upgrading bogies and brakes to improve safety and comfort.
The Society has continued to attract new members, including a significant number of junior members, indicating our success in inspiring the younger generation with an interest in models and engineering more generally. Many of our new members were attracted by our new Gauge 1 facility, demonstrating the value of this facility. The decision was also taken to take advantage of a new opportunity opened up by the construction of the new carriage shed, which enabled us to free up space in the old “container” and use it to create a new workshop. Apart from offering great value in the maintenance of our facilities, we believe we will also be able to use it to create more interest in the activities of the Society and as an educational facility. The trustees felt that the additional investment was justified in the view of the fact that the Society has recently received a large donation of workshop equipment which will be sold at the highest price possible to raise funds for the Society’s continued work.
The operation of the miniature railway inevitably involves significant wear and tear on the infrastructure of the railway and in particular, after 20 years of operation, the condition of the track was becoming very poor and maintaining it in a condition to ensure safe and reliable operation of the railway was becoming increasingly difficult. The Trustees therefore took the decision to undertake a major project to replace as much of the track as possible over a number of years and as funding allows. To this end a bulk purchase of rail was made at the end of the financial year, and a start was made on track re-laying.
Page 4
## **Financial review**
The Society’s Reserves Policy is shown at Annex 1. A number of capital projects have been planned for the next financial year which are detailed below and there are also some known liabilities for next year. When taken together, the specified Reserve, the known liabilities and the capital projects budget match closely with the Society’s cash assets at the end of the financial year.
The Society benefited from some substantial donations in the year which were beneficial in enabling us to progress these capital projects. Despite a late start due to Covid restrictions in the early part of the year, the Society operated a full program of public train rides throughout the summer, and possibly with the advantage of a new contactless payments system, donations associated with our public running reached the highest level on record.
Free reserves as at 31 December 2021 were £20,015
Income for the year was £13,702 and planned expenditure was £18,381.
In view of the level of income the charity has prepared these accounts on the receipts and payments basis, summarising all money received or paid by the charity during the year. A statement giving details of the assets and liabilities at the end of the year is provided on page 7.
Known liabilities and capital projects planned for the next financial year:
Known liabilities £1,000 Capital project – track replacement £3,000 Capital project –workshop construction £5,000 Smaller capital projects £1,000 Total: £10,000
## **Trustees Statement**
The Trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). The accounts have been scrutinised by two members of the Society, as permitted within the Society’s rules and as agreed by the Trustees. To the best of their knowledge, the Trustees confirm that: .
1. accounting records were kept in respect of the charity as required by section 130 of the Act; and
2. the accounts accord with those records; and
3. the accounts comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008.
Page 5
## **LANCASTER AND MORECAMBE MODEL ENGINEERING SOCIETY (2018)**
TRUSTEES REPORT FOR THE YEAR ENDED 31 December 2021
This report was approved by the Trustees on ……6 June 2022…….. and signed on their behalf.
....................................................………. G M Brown – Chairman
Page 6
**----- Start of picture text -----**
Receipts & Payments Account for the Financial Year Ended 31 Dec 21
(Note 6)
Note Financial Year, Jan'21-Dec'21 2020 2019
General Designated Restricted Total Total Total
Funds Funds Funds
RECEIPTS 1 £ £ £ £ £ £
Voluntary Income
Track Donations 8,388 8,388 0 6,242
**----- End of picture text -----**
|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|**Receipts & Payments Account for the Financial Year Ended 31 Dec 21**|
|---|---|---|---|---|---|---|---|
|(Note 6)
**Note**
**Financial Year, Jan'21-Dec'21**
**_2020_**
**_2019_**
Total
Total
Total
**RECEIPTS**
1
**£**
**£**
**£**
**£**
**_£_**
**_£_**
**Voluntary Income**
Track Donations
8,388
8,388
_0_
_6,242_
General
Funds
Designated
Funds
Restricted
Funds||||||||
|Other donations
2,510
Grants
Gift Aid
2
0
**Income Generation**
Group Booking Income
0
Members’ Subscriptions
3
2,764
Sale Of Misc. Items
40
**Investment Income**
0
**Charitable Income**
0
**Asset Sales**
0
**Transfers To/From Lmmes Ltd**
0
**TOTAL RECEIPTS**
**13,702**
**PAYMENTS**
**£**
**Cost Of Generating Income**
Operating The Railway
550
Special Events
132
Other
114
**Sub-total**
**796**
**Capital Expenditure**
Main Track
4,950
Gauge 1 Track
2,271
Carriage Shed
1,304
Canopy
0
Rolling Stock
4,472
New Workshop
111
Equipment
0
**Sub-total**
**13,107**|||**0**
**£**
**0**
**0**|2,510
0
0
0
2,764
40
0
0
0
0|_369_
_10,000_
_3,015_
_130_
_2,843_
_0_
_0_
_0_
_0_
_168_
**_16,525_**
_0_
_0_
_0_
**_0_**
_0_
_229_
_11,904_
_0_
_0_
_0_
_230_
**_12,363_**|_912_
_0_
_0_
_490_
_1,755_
_10_
_0_
_0_
_4,537_
_0_||
||**13,702**|**0**||**13,702**||**_13,946_**||
||**£**
550
132
114|**£**||**£**
550
132
114||**_£_**
_40_
_571_
_375_||
||**796**|**0**||**796**||**_987_**||
||4,950
2,271
1,304
0
4,472
111
0|||4,950
2,271
1,304
0
4,472
111
0||_0_
_1,212_
_0_
_433_
_2,026_
_0_
_358_||
||**13,107**|**0**||**13,107**||**_4,028_**||
|**Recurring Costs**
Rent & Rates
800
Services
2,063
**Sub-total**
**2,863**
**Administration**
General Administration
**4**
63
Other Administrative
**5**
0
**Sub-total**
**63**
**Maintaining Fixed Assets**
**1,551**
**TOTAL PAYMENTS**
**18,381**
**NET RECEIPTS-PAYMENTS**
**-4,679**|800
2,063||**0**
**0**
**0**
**0**
**0**|800
2,063|_800_
_4,017_
**_4,817_**
_291_
_2,272_
**_2,563_**
**_519_**
**_20,262_**
**_-3,737_**|_1,600_
_4,831_||
||**2,863**|**0**||**2,863**||**_6,431_**||
|||||**63**
**0**||_288_
_65_||
||**63**|**0**||**63**||**_353_**||
|||||||||
||**1,551**|**0**||**1,551**||**_1,110_**||
|||||||||
||**18,381**|**0**||**18,381**||**_12,908_**||
||**-4,679**|**0**||**-4,679**||**_1,038_**||
|||||||||
|||||||||
## **Notes**
1 Accounting policies
2 Gift Aid
These accounts have been prepared on the receipts and payments basis. Expenditure is inclusive of VAT.
Not all donations are eligible for Gift Aid. There was insignificant Gift Aid eligible income in the previous year, and so the claim was deferred to a subsequent year. Gift aid can be claimed for the previous 3 years.
3 Membership subscriptions includes a proportion of subscriptions from both 2021 and 2022
4 Trustees No remuneration or other benefits were paid to the charity’s trustees or people connected with them.
- 5 General administration is expenses internal to the Society. Other administration is expenses incurred with external organisations, including legal costs.
- 6 Figures for 2019 have been included to provide comparison with the last year that was unaffected by Covid-19 restrictions.
Page 7
**----- Start of picture text -----**
Statement of Assets & Liabilities at 31-Dec-21
Cd'Fwd
Cash Assets Bt'Fwd at Receipts Payments Transfers at 31-
01 Jan 21 in Period in Period in Period
Dec-21
Cash at Bank & in Hand
Petty Cash 0 6,027 0 -6,027 0
Bank, Current Account 24,694 7,675 -18,381 6,027 20,015
24,694 13,702 -18,381 0 20,015
Outstanding Transactions
Receipts (Unreconciled Deposits) 0 0
Payments (Unpresented Cheques) 0 0
0 0
Net
Investment Accounts Bt'Fwd Interest Transfers Cd'Fwd
Bank, Deposit Account 0 0 0 0
Total Cash Assets 24,694 20,015
**----- End of picture text -----**
## **Tangible Fixed Assets & Liabilities**
Expenditure incurred on tangible fixed assets in excess of £100, except planning and legal costs, is capitalised, values below that are written off as expenditure in the year they are incurred. Depreciation is calculated to write off the cost of tangible fixed assets over their estimated useful lives to the Society.
Asset classes where the value is reduced to under £100 will be removed as insignificant.
The depreciation rates and methods are as follows: Equipment - 10% of current value Track and Fencing - 10% of current value Rolling stock – 10% of current value Club House Buildings - straight line basis from 1st January 2000 to 31st December 2029
Canopy - 10% of current value Gauge 1 track – 10% of current value
The Society has a potential liability, estimated at £7000, for clearance of the site at the end of the lease or should the Society be wound up. This is shown below as a charge against total assets.
Page 8
|||**Tangible**|**Fixed Assets and liabilities at 31-Dec-21**|**Fixed Assets and liabilities at 31-Dec-21**|**Fixed Assets and liabilities at 31-Dec-21**|**Fixed Assets and liabilities at 31-Dec-21**|||
|---|---|---|---|---|---|---|---|---|
||||||||**10%**
£561
-£56
£2,271
£2,776
**Gauge 1**
**Track**|**Total**
**£36,133**
**-£2,417**
**£10,701**|
|**Assets**||**Buildings**|**Equipme**
**nt**|**Track &**
**Fencing**|**Rolling**
**stock**|**Canopy**|||
|Depreciation rate
Base Value
Value at 31 Dec 20
Depreciation
Addition in year
Value at 31 Dec 21||**3.33%**|**10%**|**10%**|**10%**|**10%**|||
|||£29,855
£21,910
-£995
£1,304|||||||
||||£1,770
-£177
£0|£566
-£57
£4,950
£5,459|£6,300
-£630
£2,176
£7,846|£5,026
-£503
£0|||
|||£22,218
£7,000|£1,593|||£4,523||**£44,416**
**£7,000**
**£37,416**|
|**Liabilities**|||||||||
|Site clearance at end of lease
**Net total fixed assets**|||||||||
||||||||||
||||||||||
## **Declaration**
The receipts and payments account for the financial period ended on 31 December 2021 and the statement of assets and liabilities at that date are approved by the Trustees.
For and on behalf of the Trustees:
............................................................. G M Brown - Chairman ............................................................. Date 6 Jun 2022
Page 9
Annex 1
## Reserves Policy
The Society aims to maintain a positive balance of available assets to cover future planned expenditure and unplanned expenses. In developing a Reserves Policy, the Society has considered unavoidable recurrent expenditure and the possibility of any unexpected unavoidable expenditure.
There are considerable recurring expenses which are incurred by the Society in the maintenance of the site, such as rent, electricity, buildings maintenance, site maintenance. These costs must all be covered even if the Society does not have any income. Therefore it is necessary to maintain a level of reserve funds to cover any eventuality where the society is unable to generate any income. The Society considers it prudent to keep at least one year’s running costs in hand to cover such cases.
The site at Cinderbarrow is leased from Lancashire County Council, and although we have a long lease, and are hoping to negotiate an extension, there is always the possibility that the lease may be terminated at some time in the future. It is also possible that the Society might be dissolved at some time in the future, for example if there are insufficient members to continue. In this event, there is a potential cost which would be incurred for site clearance in accordance with the lease. Considering that the Society now has considerable investment in physical assets, which could be disposed of to realise significant value, the Society believes that site clearance costs could be covered by such disposal and therefore no cash allowance has been made in the reserve policy for this eventuality.
The operation of the railway and maintenance of the site requires a considerable quantity of valuable equipment which must be both maintained and replaced from time to time. The Society must also maintain a significant reserve of funds available to cover exceptional expenses which inevitably arise from time to time, such as the replacement of major items of equipment.
## **Calculation of a reasonable reserve target for 2021**
Ongoing expenditure if no income £7,000 Unexpected capital expenditure £3,000 Total £10,000
Page 10