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2023-12-31-accounts

Charity registration number 1176862

Company registration number 10919496 (England and Wales)

STATFOLD NARROW GAUGE MUSEUM TRUST LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr G Lee
Mr N J Noon
Mr H R Noon
Mr A M Ashworth
Mr P A Lewin
Mr P Ingham
Mr D J Lee
Mr G I Lee
Secretary Mr H Noon
Charity number 1176862
Company number 10919496
Registered office The Grain Store
Statfold Barn Farm
Ashby Road
Tamworth
Staffordshire
B79 0BU
Auditor Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 24

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Companies Act 2006 and "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 2019)".

Objectives and activities

The objects of the charity are:

To educate the public in the history and development of our steam heritage by;

In furtherance of these objects the Charity may:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Significant activities

Our aim is to develop our infrastructure, café, car park, toilets, and provide facilities for Junior visitors, creating a more interesting place for all.

The Trust is performing as expected. The growth in footfall and revenue is moving towards the Trust mission to be self-sufficient and more importantly moving away from the reliance on financial support from trustees. We are maintaining a footfall of 120,000 per year and our target is 200,000 per annum. The revenue generated by this will enable the Trust to invest back into the collection.

Achievements and performance

Financial review

The Statement of Financial Activities shows a net deficit for the year of £202,613 for the charity (2022: surplus of £461,710) and a net deficit of £168,743 for the group (2022: surplus of £461,710). Our reserves, all of which are unrestricted, stand at £4,217,532 for the charity (2022: £4,420,145) and £4,251,402 for the group (2022: £4,420,145).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

Whilst this is our aim, the charity continues to be dependent on the support of certain of its Trustees, in the form of donations, to enable it to meet its site development and operating costs. These Trustees have confirmed their intention to continue to provide financial support such that the charity can operate as a going concern and meet its debts and liabilities as they fall due for a period of 12 months from the date of approval of these accounts.

The charity also occupies land and buildings owned by Mr G Lee, one of the Trustees, for which a nominal rental charge is made. A lease is currently being prepared which will secure the charity's right to occupy all the property and land on the site currently occupied, with provision for further expansion if required.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Future plans

We aim to extend the amount and variety of our already successful events in order for visitors to learn about steam heritage. We aim to take on board from previous events any way that we are able to improve in order to enhance peoples enjoyment and experience and build up a recurring visitor base for the future which will hopefully build to future generations.

Structure, governance and management

Constitution

The company was registered as a charity on 26 January 2018. The charity is a company limited by guarantee and is governed by its Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr G Lee Mr N J Noon Mr H R Noon Mr A M Ashworth Mr P A Lewin Mr P Ingham Mr D J Lee Mr G I Lee

The minimum number of trustees shall be two but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum.

The charity may by ordinary resolution appoint a person who is willing to act to be a trustee and determine the rotation in which any additional trustees are to retire.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Detailed Income & Expenditure
2023 2022 2021 2020
Income
Fundraising activities 1,148,375 879,288 548,513 112,220
Donations 705,820 1,363,770 1,019,073 1,349,096
COVID grants - 96 56,754 70,605
Trading activities: in trading subsidiary 324,727 - - -
Trading activities: in charity 25,363 63,228 76,782 52,677
Hire of facilities & building rental 52,392 56,302 21,542 12,790
Other (secretarial services, sale of assets) 14,400 22,250 12,000 12,000
Total income 2,271,077 2,384,934 1,734,664 1,609,388
Expenditure
CONSERVATION
Salaries 177,900 148,370 - -
Direct costs 104,939 96,392 100,554 81,380
Share of support costs 236,570 206,298 - -
CHARITABLE EVENTS
Staff costs: events 257,297 117,127 67,007 23,325
Staff costs: maintenance 98,297 138,465 311,539 266,922
Depreciation 259,288 259,949 153,319 80,385
Direct costs 554,487 548,100 289,530 86,963
Share of support costs 472,868 355,384 378,042 263,203
NON-CHARITABLE TRADING EVENTS
Direct costs 240,858 16,914 33,757 25,968
Allocation of support costs 37,317 36,225 23,478 20,777
SUPPORT COSTS
Salaries 375,673 256,460 149,873 125,531
Other overheads 323,886 295,705 228,704 121,284
Governance costs 25,416 31,646 17,015 32,896
Depreciation 21,779 14,096 5,928 4,269
Reallocated as above (746,755) (597,907) (401,520) (283,980)
Total expenditure per accounts 2,439,820 1,923,224 1,357,226 848,923
Fixed assets movements
Depreciation 281,067 274,045 156,896 84,654
Capital expenditure 184,520 737,962 758,307 862,001
Surplus / (Deficit) (168,743) 461,710 377,438 760,465

NOTE:

Conservation costs are not associated with operation running costs. £519,409 is the cost of complete restoration of Taymar (ongoing) and Baldwin (ongoing). Mease Valley coaches x Liverpool festial, 4 disabled conversion works completed. Cosmetic conservation of Handyman £50,000 donation to the overhaul of Darjeeling Loco. There are also numerous ongoing small museum projects to further the originality of the individual exhibits. The ongoing maintenance and preservation of the Hunslet Archive.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees' report was approved by the Board of Trustees.

Mr G Lee Trustee Dated: 2 September 2024

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees, who are also the directors of Statfold Narrow Gauge Museum Trust Ltd for the purpose 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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 Companies Act 2006. 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.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF STATFOLD NARROW GAUGE MUSEUM TRUST LTD

Opinion

We have audited the financial statements of Statfold Narrow Gauge Museum Trust Ltd (the ‘charity’) and its subsidiary for the year ended 31 December 2023 which comprise the group statement of financial activities, the group and parent charitable company balance sheets, the group cash flow statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF STATFOLD NARROW GAUGE MUSEUM TRUST LTD

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF STATFOLD NARROW GAUGE MUSEUM TRUST LTD

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor)

for and on behalf of Azets Audit Services

Chartered Accountants Statutory Auditor

5 September 2024

Westpoint Lynch Wood Peterborough Cambridgeshire United Kingdom PE2 6FZ

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Group Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Donations and legacies 3 705,820 1,363,866
Charitable activities 4 1,148,375 879,288
Other trading activities 5 402,482 119,530
Other income 6 14,400 22,250
Total income 2,271,077 2,384,934
Expenditure on:
Raising funds 7 278,175 53,139
Charitable activities 8 2,161,645 1,870,085
Total resources expended 2,439,820 1,923,224
Net (expenditure)/income for the year/
Net movement in funds (168,743) 461,710
Fund balances at 1 January 2023 4,420,145 3,958,435
Fund balances at 31 December 2023 4,251,402 4,420,145

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Unrestricted funds		 2023
£
£
4,858,386
45,020
45,076
55,235
145,331
(731,972)
(586,641)
4,271,745
(20,343)
4,251,402
4,251,402
4,251,402		 2022
£
£
4,954,932
27,588
45,217
53,002
125,807
(630,375)
(504,568)
4,450,364
(30,219)
4,420,145
4,420,145
4,420,145

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 2 September 2024

Mr G Lee

Trustee

Company Registration No. 10919496

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Unrestricted funds		 2023
£
£
4,858,386
45,020
56,434
32,644
134,098
(754,605)
(620,507)
4,237,879
(20,343)
4,217,536
4,217,536
4,217,536		 2022
£
£
4,954,932
27,588
45,217
53,002
125,807
(630,375)
(504,568)
4,450,364
(30,219)
4,420,145
4,420,145
4,420,145

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors 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 members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 2 September 2024

Mr G Lee Trustee

Company registration number 10919496

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 23 196,629 740,765
Investing activities
Purchase of tangible fixed assets (184,520) (737,962)
Net cash used in investing activities (184,520) (737,962)
Financing activities
Repayment of bank loans (9,876) (9,634)
Net cash used in financing activities (9,876) (9,634)
Net increase/(decrease) in cash and cash
equivalents 2,233 (6,831)
Cash and cash equivalents at beginning of year 53,002 59,833
Cash and cash equivalents at end of year 55,235 53,002

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Statfold Narrow Gauge Museum Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is The Grain Store, Statfold Barn Farm, Ashby Road, Tamworth, Staffordshire, B79 0BU.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity continues to be dependent on the support of certain of its Trustees, in the form of donations, to enable it to meet its site development and operating costs. These Trustees have confirmed their intention to continue to provide financial support such that the charity can operate as a going concern and meet its debts and liabilities as they fall due for a period of 12 months from the date of approval of these accounts. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Event centre 2% straight line Plant and equipment 15% reducing balance Fixtures, fittings and event equipment 15% - 33% reducing balance Computers and office equipment 33% straight line Locomotives, trains and rolling stock Heritage assets not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The event centre has been built on land owned by one of the trustees for which no rent charge is made. On the basis that the trustees believe they will continue to occupy the land in the long term the event centre is being depreciated over the buildings useful economic life.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

3 Donations and legacies

Donations and gifts
Other government grants
Donations and gifts
Donations
Gift aid receivable
Distribution from subsidiary		 Charity
2023
£
755,820
-
755,820
568,120
137,700
50,000
755,820		 Charity
2022
£
1,363,770
96
1,363,866
1,092,916
270,854
-
1,363,770		 Group
2023
£
705,820
-
705,820
568,120
137,700
-
705,820		 Group
2022
£
1,363,770
96
1,363,866
1,092,916
270,854
-
1,363,770

Donations and gifts include cash donations from Mr G Lee of £359,400 (2022: £670,000), Mrs CA Lee of £180,000 (2022: £385,000), Mr G I Lee of £nil (2022: £715) and Mrs T Lee of £nil (2022: £2,000).

4 Charitable activities

Charity & Group
Steam museum guide books
Train driver experience receipts
Railway track rentals
Income from events		 2023
£
5,581
1,900
12,000
1,128,894
1,148,375		 2022
£
6,223
6,799
12,000
854,266
879,288

Track rental income is receivable from Statfold Engineering, a business in which certain of the Trustees have a financial interest.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Other trading activities

Sales within trading company
Fundraising events
Hire of events centre
Building rental
Other trading activities		 Charity
2023
£
-
25,363
38,392
14,000
77,755		 Charity
2022
£
-
63,228
47,802
8,500
119,530		 Group
2023
£
324,727
25,363
38,392
14,000
402,482		 Group
2022
£
-
63,228
47,802
8,500
119,530

6 Other income

**Unrestricted ** Unrestricted
funds funds
Charity & Group 2023 2022
£ £
Secretarial services 14,400 13,800
Other income - 8,450
14,400 22,250

Secretarial services relate to charges made to G & CA Lee for the shared use of resources and facilities.

7 Raising funds

Fundraising and publicity
Staging fundraising events
Trading costs
Other trading activities
Support costs		 Charity
2023
£
-
-
37,317
37,317		 Charity
2022
£
16,914
-
36,225
53,139		 Group
2023
£
-
240,858
37,317
278,175		 Group
2022
£
16,914
-
36,225
53,139

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Charitable activities

Staff costs
Depreciation and impairment
Conservation of steam collection
Guide books
Event costs
Share of support costs (see note 9)
Share of governance costs (see note 9)		 Charity
2023
£
243,034
259,288
282,838
-
667,047
1,452,207
684,022
25,416
2,161,645		 Charity
2022
£
255,592
259,949
244,762
5,042
543,058
1,308,403
537,948
23,734
1,870,085		 Group
2023
£
243,034
259,288
282,838
-
667,047
1,452,207
684,022
25,416
2,161,645		 Group
2022
£
255,592
259,949
244,762
5,042
543,058
1,308,403
537,948
23,734
1,870,085

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Support costs

Staff costs
Depreciation
Repairs
Insurances
Printing and stationery
Telecommunications
IT costs and website
Subscriptions
Heat and light
Bank and finance charges
Office expenses
Audit fees
Legal and professional
Accountancy fees
Analysed between
Trading
Charitable activities:
conservation
Charitable activities: steam
events		 Support
costs
Governance
costs
£
£
375,674
-
21,779
-
104,399
-
77,752
-
11,719
-
10,339
-
8,907
-
4,103
-
73,045
-
32,739
-
883
-
-
9,600
-
11,316
-
4,500
721,339
25,416
37,317
-
228,095
8,475
455,927
16,941
721,339
25,416		 2023
£
375,674
21,779
104,399
77,752
11,719
10,339
8,907
4,103
73,045
32,739
883
9,600
11,316
4,500
746,755
37,317
236,570
472,868
746,755		 Support
costs
Governance
costs
£
£
256,460
-
14,096
-
145,043
-
39,094
-
7,153
-
4,480
-
2,794
-
4,229
-
67,017
-
24,381
-
1,514
-
-
9,000
-
20,196
-
2,450
566,261
31,646
28,313
7,912
197,581
8,717
340,367
15,017
566,261
31,646		 2022
Basis of allocation
£
256,460
Staff time
14,096
Staff time
145,043
Staff time
39,094
Staff time
7,153
Staff time
4,480
Staff time
2,794
Staff time
4,229
Staff time
67,017
Staff time
24,381
Staff time
1,514
Staff time
9,000
Governance
20,196
Governance
2,450
Governance
597,907
36,225
206,298
355,384
597,907

Governance costs includes payments to the auditors of £9,600 (2022- £9,000) for audit fees.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 Charity
2023
Number
57
Charity
2023
£
717,425
51,119
10,955
779,499		 Group
2023
Number
57
Group
2023
£
829,984
51,119
10,955
892,058		 Charity
2022
Number
44
Charity
2022
£
589,861
46,623
9,880
646,364		 Group
2022
Number
44
Group
2022
£
589,861
46,623
9,880
646,364

There were no employees whose annual remuneration was £60,000 or more.

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13 Tangible fixed assets Charity & Group

Charity & Group
Event centre
£
Cost
At 1 January 2023
1,404,074
Additions
-
At 31 December 2023
1,404,074
Depreciation and impairment
At 1 January 2023
65,141
Depreciation charged in the year
28,081
At 31 December 2023
93,222
Carrying amount
At 31 December 2023
1,310,852
At 31 December 2022
1,338,932		 Plant and
equipment
£
432,365
21,652
454,017
139,641
45,254
184,895
269,122
292,723		 Fixtures,
fittings and
event
equipment
£
822,304
151,921
974,225
323,264
185,953
509,217
465,008
499,040		 Computers
and office
equipment
Locomotives,
trains and
rolling stock
£
£
54,398
2,802,194
10,947
-
65,345
2,802,194
32,356
-
21,779
-
54,135
-
11,210
2,802,194
22,043
2,802,194		 Total
£
5,515,335
184,520
5,699,855
560,402
281,067
841,469
4,858,386
4,954,932

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14
Stocks
Charity & Group
Goods held for resale
15
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Charity & Group
Bank loans
Payable within one year
Payable after one year		 Charity
2023
£
13,749
13,304
2,255
27,126
56,434		 Charity
2022
£
14,765
-
-
30,452
45,217		 2023
£
45,020
Group
2023
£
15,695
-
2,255
27,126
45,076
2023
£
31,125
10,782
20,343		 2022
£
27,588
Group
2022
£
14,765
-
-
30,452
45,217
2022
£
41,001
10,782
30,219

The charity has a bank loan comprising a 2.5% fixed rate loan totalling £50,000 repayable in equal instalments by June 2026, following a 12 month capital repayment holiday.

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social
security
Trade creditors
Amounts owed to subsidiary
undertakings
Other creditors
Accruals and deferred income		 Charity
2023
£
10,782
74,852
587,578
44,545
4,137
32,714
754,608		 Charity
2022
£
10,782
39,999
531,740
-
2,819
45,035
630,375		 Group
2023
£
10,782
85,424
588,319
-
4,137
43,310
731,972		 Group
2022
£
10,782
39,999
531,740
-
2,819
45,035
630,375

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

18 Creditors: amounts falling due after more than one year

2023 2022
Charity & Group Notes £ £
Bank loans 16 20,343 30,219

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £10,955 (2022 - £9,880).

20 Operating lease commitments

Charity & Group

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023 2022
£ £
Within one year - 1,000

21 Related party transactions

The Group has taken advantage of the exemption permitted by FRS 102 Section 33 "Related Party Disclosures" not to provide disclosures of transactions entered into with other wholly owned members of the Group.

Trade debtors include the amount of £1,200 (2022: £1,200) due from Statfold Engineering Ltd, a company in which certain of the Trustees hold a financial interest, and £849 (2022: £nil) due from G & CA Lee, a partnership in which certain of the Trustees hold a financial interest.

Trade creditors include the amount of £411,043 (2022: £407,243) due to G & CA Lee, a partnership in which certain of the Trustees have a financial interest.

The charity's activities are located on land owned by Mr G Lee, one of the trustees, for which annual rent of £1,000 (2022: £1,000) is paid.

The charity purchased goods and services in the amount of £12,472 (2022: £45,221) and recharged costs of £41,924 (2022: £16,560) to G & CA Lee, a partnership in which certain trustees have a financial interest.

The charity purchased goods and services in the amount of £6,525 (2022: £12,029) and received income of £14,704 (2022: £14,400) from Statfold Engineering Limited, a company in which certain trustees have a financial interest.

A distribution of £50,000 was paid to the charity by its subsidiary Statfold Narrow Gauge Museum (Trading) Ltd during the year (2022: £nil), with a further £33,869 to be paid after the year end (2022: £nil).

STATFOLD NARROW GAUGE MUSEUM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

22 Subsidiaries

Details of the charity's subsidiaries at 31 December 2023 are as follows:

Name of undertaking Registered Nature of business Nature of business Class of % Held % Held
office shares held
**Direct **		 Indirect
Statfold Narrow Gauge England & Wales Operation of events and Ordinary 100.00
Museum (Trading) Ltd facilities to support the
museum (dormant in previous
year)
Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Statfold Narrow Gauge
Museum (Trading) Ltd 33,870 33,871
23 Cash generated from operations 2023 2022
£ £
(Deficit)/surpus for the year (168,743) 461,710
Adjustments for:
Depreciation and impairment of tangible fixed assets 281,067 274,045
Movements in working capital:
(Increase) in stocks (17,433) (26,474)
Decrease in debtors 141 36,665
Increase/(decrease) in creditors 101,597 (5,181)
Cash generated from operations 196,629 740,765
24 Analysis of changes in net funds
At 1 January **Cash flows ** At 31 December
2023 2023
£ £ £
Cash at bank and in hand 53,002 2,233 55,235
Loans falling due within one year (10,782) - (10,782)
Loans falling due after more than one year (30,219) 9,876 (20,343)
12,001 12,109 24,110