The 5BEL Charitable Trust (CIO)
Annual Report and Financial Statements Year Ended 31 December 2023 Charity registration number: 1184057
The 5BEL Charitable Trust (CIO)
Contents (continued)
| Reference and Administrative Details | 1 |
|---|---|
| Chairman's Statement | 2 to 3 |
| Trustees' Report | 4 to 6 |
| Statement of Trustees' Responsibilities | 7 |
| Independent Auditor's Report | 8 to 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 to 22 |
The 5BEL Charitable Trust (CIO)
Reference and Administrative Details
Chairman Mr Ian Brown Trustees Mr Stephen Baxter Mr Ian Brown Mr Michael Hart Mr Douglas Lindsay Mr Stephen Murfitt Mr Gordon Rushton Mr Stuart Wilkinson Reg Davies Senior Management / Mr Anthony Ford, Heritage Advisor Leadership Team Charity Registration Number 1184057 Principal Office 52-55 Trafalgar Street Brighton BN1 4EB Auditor PKF Francis Clark Chartered Accountants Melville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW Solicitors Blake Morgan 6 New Street Square London EC4A 3DJ
Page 1
The 5BEL Charitable Trust (CIO)
Chairman's Statement
Year Ended 31 December 2023
Restoring the iconic Brighton Belle (“The Belle”), the world’s only electric Pullman train, to main line operation continues to be the biggest and most demanding heritage rail restoration project underway in the United Kingdom.
During 2020, the specialist railway engineering company, LNWR Heritage Company Limited (“LNWR”) based at Crewe, assumed responsibility for co-ordinating the completion of the remaining engineering, electrical and decorative work required to prepare The Belle for testing and operation.
The Trustees continue to monitor the progress of the engineering and restoration work in conjunction with representatives of LNWR. Together they have been assessing the most appropriate time for the testing and launching of the commercial operations of the train.
The Trustees are very satisfied with the work and expertise of the highly experienced team at LNWR. LNWR has identified further rectification work required to ensure successful operation and compliance with operating regulations. This work is ongoing and has again delayed the programme of testing. It is now expected that the four restored cars will be subjected to thorough testing later in 2024 prior to commercial operation in Spring 2025.
Since the year end, the Trust has entered into a lease agreement with the Royal Scot Locomotive and General Trust (“RSL>”) whereby RSLG&T will manage and operate the train incorporating the four restored cars, once the restoration has been completed. The Trustees believe that this arrangement will ensure the most efficient and reliable means of operating the train given the benefit of the expertise and experience of RSL> and the related company Locomotive Services Limited.
Information about progress will be released on the Trust’s website.
The Trust’s principal developments and activities since the last report are set out below.
• Work has developed on four of the Trust’s cars, numbers 85, 88, 91 and the saloon car Doris. Two other cars are currently held in store. The strategy for these cars will be assessed after successful completion and operation of the first four cars.
• As reported in previous years, the guiding principles for our engineering works continue to be to mirror historic “Southern” engineering practice and to spare material to other heritage restoration groups.
• The Trust is working closely with regulators to ensure that engineering work and plans for operations comply with operating standards.
• The Trust has entered a lease agreement with RSLG&T, as noted above, covering arrangements for accommodating, overhauling and operating the train.
• Trustees continue to participate in presentations on the Brighton Belle and Britain’s electric transport heritage to interest groups around the country.
• The Trust continues to link with like-minded organisations and heritage groups in the UK to encourage the sharing of restoration and engineering knowledge between programmes and across national boundaries and to encourage the development of national centres of restoration excellence.
Page 2
The 5BEL Charitable Trust (CIO)
Chairman's Statement
Year Ended 31 December 2023 (continued)
• The Trust remains very keen to receive original items and fittings from the Brighton Belle cars and would welcome further donations of artefacts, large or small, to complete the authenticity of the project.
This is my first report as Chairman. I would like to express deep gratitude to my predecessor, Denis Dunstone, for all his commitment to and enthusiasm for this project. Without Denis, the progress made by the 5Bel Charitable Trust project would not have been possible.
On behalf of all the Trustees I thank most sincerely to all the Trust’s committed and extremely generous supporters who continue to provide the critical, much valued support required to complete this unique project.
........................................
Mr Ian Brown Chairman and Trustee
Page 3
The 5BEL Charitable Trust (CIO)
Trustees' Report
The trustees present the annual report together with the financial statements and auditor's report of the trust for the year ended 31 December 2023.
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 - January 2019) and the Charities Act 2011.
Objectives and activities
Objects and aims
The objects of the trust are to advance education and learning and to promote public benefit through the preservation, restoration, maintenance and exhibition of British electric trains and other vehicles including, in particular, the Brighton Belle, establishing a museum for the safekeeping and exhibition of them and the provision of information and education of British electric trains.
Fundraising disclosures
The trust continues to raise funds from its established group of supporting donors and by advertising in the railway press. The trust does not employ external fundraisers.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Financial review
The trust generated income of £9,485 (2022: £11,255) in the year. Costs totalling £97,437 (2022: £102,739) were incurred. An overall defecit was suffered during the year of £87,952 (2022: £91,484). The balance of unrestricted funds at the year end was £11,244,139 (2022: £11,332,091).
Policy on reserves
At the year end the unrestricted fund stood at £11,244,139 (2022: £11,332,091) of which £218,919 (2022: £355,454) can be considered free reserves. The remaining reserves balance is reflected in the investment made on carriages held in fixed assets.
The trustees aim to maintain free reserves at a level which equate to approximately three months worth of direct charitable expenditure, this policy is being met. The trustees considered that holding this level of reserves will also ensure that there are sufficient funds available to cover support and governance costs.
Risk review
The trustees have considered the major risks to which the trust is exposed and have reviewed those risks and established systems and procedures to manager those risks.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the trust regularly monitors its cash reserves and forecast expenditure.
Page 4
The 5BEL Charitable Trust (CIO)
Trustees' Report (continued)
Going concern
After making appropriate enquiries and due consideration, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the forseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Structure, governance and management
Nature of governing document
The charity is a registered charity in England and Wales under number 1184057. It is a charitable incorporated organisation constituted under a constitution dated 24 June 2019.
The charity has a trading subsidiary, Brighton Belle Train Limited, which was set up to market and operate the Brighton Belle. This company is currently domant.
Recruitment and appointment of trustees
Trustees with suitable expertise and experience are invited by the Board of Trustees to join the trust when vacancies arise. Their appointment requires formal approval by the existing Board of Trustees. New trustees are briefed on the activities of the trust and their responsibilities as trustees.
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees: Mr Stephen Baxter Mr Ian Brown Mr Denis Dunstone (resigned 24 January 2024) Mr Michael Hart Mr Douglas Lindsay Mr Stephen Murfitt Mr Gordon Rushton Mr Stuart Wilkinson Reg Davies (appointed 22 April 2024)
Chairman: Mr Ian Brown
Senior Management / Leadership Mr Anthony Ford, Heritage Advisor Team:
Reappointment of auditor
In accordance with section 144 of the Charities Act 2011, a resolution for the re-appointment of PKF Francis Clark as auditors of the trust is to be proposed at the forthcoming Annual General Meeting.
Page 5
The 5BEL Charitable Trust (CIO)
Trustees' Report (continued)
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the trust's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the trust on .................... and signed on its behalf by:
......................................... Mr Ian Brown Chairman and trustee
Page 6
The 5BEL Charitable Trust (CIO)
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 trust and of the incoming resources and application of resources of the trust for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the trust and financial information included on the charity's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the trust on .................... and signed on its behalf by:
......................................... Mr Ian Brown Chairman and Trustee
Page 7
The 5BEL Charitable Trust (CIO)
Independent Auditor's Report to the Members of The 5BEL Charitable Trust (CIO)
Opinion
We have audited the financial statements of The 5BEL Charitable Trust (CIO) (the 'trust') for the year ended 31 December 2023, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the trust's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the trust 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 trust's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 8
The 5BEL Charitable Trust (CIO)
Independent Auditor's Report to the Members of The 5BEL Charitable Trust (CIO) (continued)
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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
In the light of our knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities (Accounts and Report) Regulations 2008 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 7), the trustees 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 trust'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 trust or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework that is applicable to the trust and the sector in which it operates to identify the key law and regulations affecting the trust.
Page 9
The 5BEL Charitable Trust (CIO)
Independent Auditor's Report to the Members of The 5BEL Charitable Trust (CIO) (continued)
The key laws and regulations we identified were General Data Protection Regulations (GDPR), Fundraising Regulations for Charities and Health and Safety Regulations. The trust has limited laws and regulations to which it is required to comply, they have no customers as such. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Charities Act, relevant tax compliance regulations in the UK and reporting framework (Charities SORP - FRS102).
We discussed with management how the compliance with these laws and regulations is monitored and we discussed the policies and procedures in place. We also identified the individuals who have any issues if the arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the charity’s ability to continue trading and the risk of material misstatement in the accounts.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non compliance or legal costs in respect of non compliance; and
• Reviewed board minutes
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
The key risks we identified were the incorrect treatment of costs as either capital or revenue in respect of the renovation works completed to the carriages and the incorrect recording and misappropriation of donations.
We also evaluated the risk of fraud through management override, we concluded this to be low as the accounting records are prepared by a third party via Xero accounting software. The trustees are in a position to override controls, however, as they do not get involved in the accounting processes there is minimal scope to exert management bias through the inappropriate use of management journals.
In response to the identified risks, as part of our audit work we:
• Reviewed all significant costs included in repairs and maintenance codes and tested a sample of directly attributable costs to ensure they are correctly capitalised;
• Reviewed income via detailed analytical review procedures, detailed testing of receipts, gift aid reconciliation and substantive completeness testing;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making those estimates;
• Used data analytics to test journal entries throughout the year, for appropriateness.
Page 10
The 5BEL Charitable Trust (CIO)
Independent Auditor's Report to the Members of The 5BEL Charitable Trust (CIO) (continued)
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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-
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. 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.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the trust’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
-
Conclude on the appropriateness of the trustees use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the trust's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the trust to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the trust to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the trust audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page 11
The 5BEL Charitable Trust (CIO)
Independent Auditor's Report to the Members of The 5BEL Charitable Trust (CIO) (continued)
Use of our report
This report is made solely to the trust trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to trustees in an auditors' 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 trust and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Duncan Leslie (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor
Melville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW
Date:.............................
Page 12
The 5BEL Charitable Trust (CIO)
Statement of Financial Activities
Year Ended 31 December 2023
(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities 3 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities 3 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 |
Unrestricted funds £ 9,485 9,485 (97,437) (97,437) (87,952) (87,952) 11,332,091 11,244,139 Unrestricted funds £ 11,255 11,255 (102,739) (102,739) (91,484) (91,484) 11,423,575 11,332,091 |
Total 2023 £ 9,485 9,485 (97,437) (97,437) (87,952) (87,952) 11,332,091 11,244,139 Total 2022 £ 11,255 |
|---|---|---|
| 11,255 | ||
| (102,739) | ||
| (102,739) | ||
| (91,484) | ||
| (91,484) 11,423,575 |
||
| 11,332,091 |
All of the trust's activities derive from continuing operations during the above two periods.
The notes on pages 16 to 22 form an integral part of these financial statements. Page 13
The 5BEL Charitable Trust (CIO)
Balance Sheet
31 December 2023
| 31 December 2023 | ||
|---|---|---|
| Note Fixed assets Heritage assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets Net assets Funds of the trust: Unrestricted income funds Unrestricted funds Total funds 11 |
2023 £ 11,025,220 36,954 201,961 238,915 (19,996) 218,919 11,244,139 11,244,139 11,244,139 |
2022 £ 10,976,637 36,070 349,947 |
| 386,017 (30,563) |
||
| 355,454 | ||
| 11,332,091 | ||
| 11,332,091 | ||
| 11,332,091 |
The financial statements on pages 13 to 22 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mr Ian Brown Chairman and trustee
The notes on pages 16 to 22 form an integral part of these financial statements. Page 14
The 5BEL Charitable Trust (CIO)
Cash Flow Statement
Year Ended 31 December 2023
| Year Ended 31 December 2023 | ||
|---|---|---|
| Note Cash flows from operating activities Net expenditure for the operating period Working capital adjustments (Increase)/decrease in debtors 9 Decrease in creditors 10 Net cash flows from operating activities Cash flows from investing activities Purchase of tangible fixed assets Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December |
2023 £ (87,952) (884) (10,567) (99,403) (48,583) (147,986) 349,947 201,961 |
2022 £ (91,484) 74,434 (5,079) |
| (22,129) (169,827) |
||
| (191,956) 541,903 |
||
| 349,947 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 16 to 22 form an integral part of these financial statements. Page 15
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023
1 Accounting policies
Statement of compliance
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) (second edition - October 2019) and the Charities Act 2011.
Basis of preparation
The 5BEL Charitable Trust (CIO) 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 notes.
Going concern
The trustees consider that there are no material uncertainties about the trust's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the trust has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Legacies in the form of investments or property are credited at the lower of probate or market value.
Gift aid
Incoming resources from tax reclaim are included in the Statement of Financial Activities at the same time as the gift to which they relate.
Investment income
Investment income is recognised when receivable.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
Page 16
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
Charitable activities
Charitable expenditure comprises those costs incurred by the trust in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
Governance costs
These include the costs attributable to the trust’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed expenses.
Heritage assets
The cost of heritage assets is their purchase cost, together with any incidental expenses of acquisition. Any cars which have been donated to the trust are included in the accounts at trustees' valuation. As all the cars held are in the process of refurbishment, no depreciation has been provided on them. In the view of the trustees' the cars will all increase in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the trust.
Financial instruments
Classification
The trust holds the following financial instruments:
• Short term trade and other debtors and creditors; and
- Cash and bank balances.
All financial instruments are classified as basic.
2 Income from donations and legacies
| Donations and legacies; Donations from individuals Gift aid reclaimed |
Unrestricted General fund £ 8,753 732 9,485 |
Total 2023 £ 8,753 732 9,485 |
Total 2022 £ 10,222 1,033 |
|---|---|---|---|
| 11,255 |
Page 17
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
3 Expenditure on charitable activities
| Renovation of cars Charitable donations Governance and support costs |
Activity undertaken directly £ 60,496 2,000 - 62,496 |
Activity support costs £ - - 34,941 34,941 |
Total 2023 £ 60,496 2,000 34,941 97,437 |
Total 2022 £ 68,514 - 34,225 |
|---|---|---|---|---|
| 102,739 |
4 Analysis of governance and support costs
Support costs allocated to raising funds
| Basis of allocation Governance costs £ Insurance 100% - Sundry 100% - Bank charges 100% - Governance costs 100% 8,598 8,598 |
Other support costs £ 24,700 1,337 306 - 26,343 |
Total 2023 £ 24,700 1,337 306 8,598 34,941 |
Total 2022 £ 24,490 1,114 266 8,355 |
|---|---|---|---|
| 34,225 |
All support costs are unrestricted expenditure (2022: all unrestricted).
All governance costs are unrestricted expenditure (2022: all unrestricted).
Governance costs
| Audit fees Audit of the financial statements Other fees paid to auditors Other governance costs |
Unrestricted General fund £ 6,500 547 1,551 8,598 |
Total 2023 £ 6,500 547 1,551 8,598 |
Total 2022 £ 6,075 465 1,815 |
|---|---|---|---|
| 8,355 |
Page 18
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
5 Net incoming/outgoing resources
Net outgoing resources for the year include:
| Audit fees | 2023 £ 6,500 |
2022 £ 6,075 |
|---|---|---|
6 Trustees' remuneration and expenses
During the year, 2 trustees (2022: 2) were reimbursed for travel and subsistence costs incurred in connection with the trust. The total cost for the year was £322 (2022: £685).
No trustees, nor any persons connected with them, have received any remuneration from the trust during the year.
No trustees have received any other benefits from the trust during the year.
7 Taxation
The trust is a registered charity and is therefore exempt from taxation.
8 Heritage assets
| Cost At 1 January 2023 Additions At 31 December 2023 Depreciation At 31 December 2023 Net book value At 31 December 2023 |
Railway cars £ 10,976,637 48,583 11,025,220 - 11,025,220 |
Total £ 10,976,637 48,583 |
|---|---|---|
| 11,025,220 - |
||
| 11,025,220 |
Heritage assets consist of six railway cars which are being restored. All of the railway carriages owned by the Trust were built in 1932. They are in the process of being restored for operation on the main railway network, providing the experience of luxury travel and dining evocative of the 1930's. All the assets have been acquired using income from donations.
Summary of transactions
Page 19
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
| Purchases and additions Vehicles |
2023 £ 48,583 |
2022 £ 169,827 |
2021 £ 161,693 |
2018 £ 56,768 |
2017 £ 1,394,040 |
|---|---|---|---|---|---|
Page 20
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
9 Debtors
| Prepayments VAT recoverable 10 Creditors: amounts falling due within one year Trade creditors Accruals 11 Funds Balance at 1 January 2023 £ Incoming resources £ Unrestricted funds General Unrestricted General fund 11,332,091 9,485 Balance at 1 January 2022 £ Incoming resources £ Unrestricted funds General Unrestricted General fund 11,423,575 11,255 |
2023 £ 12,279 24,675 36,954 2023 £ 13,555 6,441 19,996 Resources expended £ (97,437) Resources expended £ (102,739) |
2022 £ 11,623 24,447 |
|---|---|---|
| 36,070 | ||
| 2022 £ 21,465 9,098 |
||
| 30,563 | ||
| Unrestricted Balance at 31 December 2023 £ 11,244,139 |
||
| Unrestricted Balance at 31 December 2022 £ 11,332,091 |
Page 21
The 5BEL Charitable Trust (CIO)
Notes to the Financial Statements
Year Ended 31 December 2023 (continued)
12 Analysis of net assets between funds
| Heritage assets Current assets Current liabilities Total net assets |
Unrestricted General fund £ 11,025,220 238,915 (19,996) 11,244,139 |
Total funds at 31 December 2023 £ 11,025,220 238,915 (19,996) |
|---|---|---|
| 11,244,139 |
13 Analysis of net funds
| Cash at bank and in hand Net funds |
At 1 January 2023 £ 349,947 349,947 |
Financing cash flows £ (147,986) (147,986) |
At 31 December 2023 £ 201,961 201,961 |
|---|---|---|---|
14 Related party transactions
During the year the trust made the following related party transactions:
Railway Wheelset & Brake Limited
(A Director of Railway Wheelset & Brake Limited is also a trustee of The 5BEL Charitable Trust) The company provided The 5BEL Charitable Trust with storage facilities totalling £600 during the year (2022: £1,020). At the balance sheet date the amount due to/from Railway Wheelset & Brake Limited was £Nil (2022 - £Nil).
17 Control
The ultimate controlling party are the trustees.
Page 22