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2020-12-31-accounts

Charity number: CC209206 Company number: 00726331

The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees' report and consolidated financial statements

for the year ended 31[st] December 2020

The Kennet & Avon Canal Trust

(A company limited by guarantee)

Contents

Page Trustees' report 1 - 11 Report of the independent examiner 12 Consolidated Statement of financial activities 13 Consolidated Balance sheet 14 Balance sheet 15 Cash flow statement 16 Notes to the financial statements 17 - 28

The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

2020 in summary

Introduction

The Trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31[st] December 2020 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Trust’s Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (FRS102).

Our Vision and Strategy

The charitable objects of the Trust, as set out in its Articles of Association, are to:

Page 1

The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

In November 2020, following a review of the Trust’s future priorities, the Trustees agreed a new Vision and Strategy statement, taking full account of Charity Commission guidance on public benefit from charitable activities.

This statement included the following aims:

These aims will guide the future priorities for the Trust, as a basis for ensuring that it continues to meet its objects for the public benefit. The Trust will seek to achieve this in the following way:

Review of 2020

(a) Overview

The Trust’s achievements are heavily reliant on the contribution of the time and expertise of about four hundred volunteers, who mainly operate through the Trust’s eight Branches. Our boats are exclusively crewed by volunteers, Crofton opening days are almost entirely run by volunteers, and our events and support for canal side work are delivered by volunteers. The safety and wellbeing of our volunteers and staff is therefore a priority for Trustees.

Our plans for 2020 were affected very significantly by the Covid-19 pandemic. Even before the first national lockdown in March, Trustees had taken the decision to suspend operations. Two members of staff were put on furlough, with the other two working from home to carry out essential administrative tasks, including making refunds to those who had made bookings for boat holiday hire or public boat trips.

Trust Council and the Enterprise Board continued to meet by electronic means, and plans were developed, in line with legal restrictions and Government guidance, to allow operations to restart in a Covid-secure way. The target was set to reopen Crofton Beam Engines to the public from mid-July, with some public boat trips and holiday hire restarting in August. This was achieved, as described in more detail below, although visitor numbers and therefore income were obviously much below budgeted levels.

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

Our café licensees were also impacted severely by Covid restrictions, and were either closed or were only able to offer takeaway services for significant periods during the year, and into 2021. The Enterprise Board agreed to share the financial impact by waiving rents for one month in 2020 and again in February 2021.

Trust Council reviewed updated financial projections for 2020 and for the five years to 2025 at its meeting in July. It recognised the need to reduce administrative costs as well as increasing income both from membership subscriptions and donations and grants, and agreed to set up a strategic review to be undertaken by a sub-group of Trust Council with input from Branches. As well as updating the Vision and Strategy for the Trust, this review resulted in revised financial targets for Bruce Boats and Crofton, measures to reduce the central administrative costs of the Trust, and proposals to refresh the membership offer and update the membership system.

(b) Trust

The Trust operates mainly through its eight Branches.

Crofton Branch is responsible for running Crofton Beam Engines, a Grade 1 listed building housing the oldest beam engine in the world still in its original location and still able to perform its original task. 2020 saw the formal completion of the project to tell 'Our Crofton Story: Its Buildings and Its People'. This major £750K project, supported by the National Lottery Heritage Fund (NHLF), started in 2017, and in 2018 and 2019 involved major restoration work to the buildings, and the provision of disabled and staff toilets.

In 2020, the focus has been on delivering the Activity Plan: this has included installation of a new play area in June, of new interpretation panels around the site in July with video screens showing films of the engines in action (including the Shell film from the 1950s narrated by John Betjeman), and provision of additional visitor facilities such as cycle racks and picnic tables. These works were completed before the site reopened to visitors on 18 July.

By agreement with the Heritage Fund, additional items were added to the project such as replacement Boiler House doors, and work on the electrical system within the Pumping Station itself to address issues identified in an electrical inspection carried out after the end of the season.

The Activity Plan also includes development of formal and informal learning programmes. On the basis of a commitment from the Trust to fund the post for a two year period from the end of the Lottery project, a Learning and Community Engagement Officer was appointed in September to lead this work, and we were able to host a visit of sixth form students in October. Using the skills of volunteers, a large demountable model of the engines was designed and produced, to be used as a learning aid.

The project has been independently evaluated, a process which has involved comparing achievements with the commitments originally made to the Heritage Fund, interviews with Trustees, volunteers and staff, contractors and other stakeholders, as well as surveys of visitor reaction. This evaluation report was formally accepted by the Heritage Fund in December, allowing the final grant payment to be made. Project expenditure was just under £700,000, £61,000 below budget. Over the period of the project, volunteer time input was 1,400 days, valued by the Heritage Fund at £220K.

Crofton Branch also secured a grant under the South West Museum Development Programme’s ‘Small Grant Big Improvement’ project for the purchase of a contactless donation box. This was installed at the beginning of September, and generated useful donations in particular over the Heritage Open Days weekend, when entry to the station was free of charge.

Following the resignation of the full-time Site Manager, who left in April, the site has been managed in 2020 by a volunteer Site Manager with support from a full-time Assistant Site Manager, who returned from furlough in mid-June. The site was open to visitors from 18 July for a total of 33 days, although it was not possible to steam the engines or hold any special events. On each day, six or seven volunteers were on duty to ensure the safety of visitors with additional sanitisation and cleaning, and to manage visitor numbers to

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

ensure adequate social distancing. The measures put in place received very favourable feedback from visitors, and will provide a model for 2021 opening.

Some of the other Branches, such as Reading, have continued with their programme of talks, although these were held electronically.

Bath/Bristol Branch funded the purchase of a new sign to be installed at Dundas Wharf. This continues the Branch’s collaboration with the Canal and River Trust (CRT) to enhance the western end of the canal.

Because of the pandemic, events such as the Newbury waterways festival, for which the Newbury Branch had obtained grants from the Greenham Trust, the Englefield Trust and Newbury Town Council, and the Reading Waterfest jointly operated in partnership with Reading Borough Council were not able to be held. It is hoped that these events can be held in 2021.

Similarly, the Trust Museum at Devizes was closed from the initial lockdown. It is hoped that it will reopen after Easter 2021, with new operating arrangements to ensure that it is Covid-secure.

Two editions of the Trust’s magazine The Butty were published, although the Autumn edition was issued only in electronic format.

(c) Enterprise

The Trust’s trading subsidiary, the Kennet and Avon Canal Trust (Enterprise) Ltd, operates five public boat trips, holiday hire of four boats adapted for use by disabled passengers, and a boat for use by community groups. It also licenses cafés at Bradford on Avon, Devizes Newbury and Aldermaston. (The café at Crofton did not operate in 2020.) These activities directly support delivery of the Trust’s charitable objects, in particular by promoting recreational use of the canal by a wide range of the public. Profits on these activities are paid to the Trust, and thereby support the public benefit both directly and indirectly.

In a normal year, trip boats and holiday hire activities run from Easter to October, with additional public services at Christmas. Because of the pandemic, only two of the trip boats were able to operate in 2020 (Barbara McLellan, based at Bradford on Avon, and the Rose of Hungerford), starting in August. However, capacity was significantly reduced in order to ensure social distancing between different households. Bruce Boat holiday hires also restarted in August, but were then impacted by introduction of the ‘rule of six’ which precluded groups involving different households from hiring boats. Barbara McLellan was also able to operate limited Christmas services.

Neither Jubilee (the narrowboat based at Newbury) or Matilda (the leased boat based at Reading) operated in 2020, because it was not possible to achieve social distancing on these smaller boats. although some crew training was undertaken between lockdowns. Kenavon Venture also did not operate in 2020, and significant work was required to address issues with its hull in order to meet the requirements of the Maritime and Coastguard Agency (MCA), which regulates boats with a capacity in excess of 12.

Maintaining the boat fleet owned by Enterprise involves significant fixed costs, for example in respect of licences, inspection by the MCA, mooring and insurance. As a consequence of lower income, boat activities therefore made a significant loss in 2020. Recognising the potential of the boat fleet to return to profit in the medium term, the Trust agreed to make a short term loan to Enterprise in April, which was consolidated and extended in a further loan agreed in August which is to be repaid over a maximum of five years. In accordance with Charity Commission guidance, formal loan agreements were signed, which also provided for the payment of interest.

Following a tender exercise, a new licensee was appointed to operate the café at Devizes from 1 April 2020. Because of the first lockdown, the actual opening was delayed.

The four licensed cafés continued to make a positive contribution to Enterprise, although opening hours and the service offered were also seriously impacted by Covid restrictions. The Enterprise Board agreed in 2020

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

that in future relationships with café licensees should generally be the responsibility of the relevant Branch, to improve communication and to develop the role of the cafés in providing information to visitors about the Trust and the canal.

(d) Administration and governance

Up to March, two full time and one part time members of staff (including the Trust Administrator) were based at the Devizes office. After being furloughed, the Trust Administrator left at the end of August, and was not replaced. The other two members of staff have been mainly working from home since March, with the office generally only open on one day a week.

Other cost saving measures included switching energy suppliers at Devizes, which followed an earlier switch at Crofton.

These and other measures have resulted in a significant reduction in Trust and Enterprise central costs. A revised basis of allocating Devizes office costs between Trust and Enterprise has therefore been agreed, to reflect the change in activities.

Given the turnover of the Group, a full audit of the accounts is not required. The Trustees therefore decided in December that in future accounts should be subject to Independent Examination rather than audit, which has also resulted in a reduction in costs for both Trust and Enterprise. This does not change Trustees’ duties as Directors under the Companies Act to ensure that the accounts show a true and fair view.

Plans for 2021 and beyond

(a) Trust

Towards the end of 2020, the Trust was successful in getting grant funding from the Wiltshire Community Foundation to meet the costs of three heritage-related projects to be undertaken in 2021:

Other projects being taken forward in 2021 include:

At Crofton, plans are in place to reopen to visitors as soon as restrictions on heritage sites are lifted, hopefully in mid-May, with steaming recommencing soon afterwards. Following the last boiler inspection, major work will be required to the boiler in the coming winter if it is to continue steaming in 2022. A detailed survey will be undertaken to identify the best option. In parallel, investigations of alternative fuels will be undertaken, given the expected phasing out of coal supplies. The Trust has joined the Association of British Transport and Engineering Museums, which is a member of the Heritage Fuels Alliance, to ensure it can learn from trials being undertaken elsewhere.

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

Development of the learning programme will be continued, covering the whole range from Key Stages 1 and 2 through to university students, with continued collaboration with the University of Bath, and with students from the Atomic Weapons Establishment to develop the ground-breaking mechatronics project as part of a five-year partnership. Crofton Beam Engines took part in the Festival of Tomorrow, organised by STEAM museum in Swindon in February 2021. Discussions are under way with CRT on the transfer of ownership of the Smithy (the only major building on the site still owned by CRT); once this is agreed, plans will be developed which could include using this building for educational purposes.

Other initiatives started as part of the Lottery-funded project at Crofton will be continued, in particular extending the number of oral history interviews and expanding the virtual archive of historic Crofton documents. This is being done in close liaison with the Trust’s central Archive, located at Caen Hill, to ensure a commonality of approach. Further work to prepare for a formal application for accreditation of Crofton under the Arts Council scheme will be undertaken, with the aim of making an application in the first half of 2022.

Recruitment of a new General Manager for Crofton will be taken forward, with the aim of making an appointment in the summer. Communications with volunteers and the public will continue to be developed, through the website and social media.

Along the whole canal, Branches will be encouraged to take a greater role in monitoring the condition of both physical assets and the general canal environment, including its ecology and biodiversity.

(b) Enterprise

Operating plans for the company’s trip boat and holiday hire fleet in 2021 assume a gradual relaxation of Covid restrictions, which could lead to a further small financial loss in 2021. There may therefore need to be a further drawdown of the loan facility agreed with the Trust in 2020. Nonetheless, Directors remain confident that the loan can be fully repaid by the end of 2025, as required by the Loan Agreement, and that the company can then resume making payments of its profits to support the charitable work of the Trust.

Following major work to Kenavon Venture over winter 2020-21, with a possible repainting to be undertaken next winter, no major expenditure on boats is anticipated in 2021. Regular maintenance costs are included within approved budgets. The next update of the medium term plan will include a maintenance plan for all the boats owned by Enterprise.

A decision will be taken later in 2021 on whether to renew the lease of the Reading trip boat (Matilda). Investigations are also proceeding on the cost and operating implications of replacing the engine on one of the Bruce Boats with a hybrid or all-electric engine, which would reduce noise and emissions.

Bruce Branch is also planning to introduce new Discovery Trips from Bedwyn to Crofton in partnership between with Crofton Branch, and running ‘Caring for Carers’ trips.

Following agreement of a new lease with CRT for the Tea Rooms at Aldermaston, a new licence will be put in place for their operation in 2021. Preparations will also be made for renewing the lease and licence of the Tea Rooms at Bradford on Avon, which expire at the end of 2021.

(c) Administration and governance

During 2021, it is planned to replace the current membership and direct debit systems. The aim is to link these to a new Trust website, which will enable membership applications to be made online, and for members to update their contact information online. The new website will also facilitate other future enhancements, such as making digital records from the Archive more generally available, and including a ‘virtual tour’ of the Devizes Museum.

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

In line with the new Vision and Strategy, communications between Trust Council and Branches (which are formally sub-committees of the Board) are being improved. Branch constitutions will also be reviewed to ensure that they reflect current good practice.

Financial Review

At Group level (Trust and Enterprise), net expenditure in 2020 was £116,885 (2019: £33,748). These figures include expenditure on ‘Our Crofton Story’.

There was a significant reduction in income from commercial trading activities from £311,308 in 2019 to only £54,912. However, this was partially offset by an increase in donations, grants and legacies from £146,295 in 2019 to £257,049. The 2020 figure includes local authority grants to leisure businesses, receipts under the Coronavirus Job Retention Scheme (‘furlough’) and grants from the Wolfson Foundation (£35,000, which was unrestricted) and the Wiltshire Community Foundation (£15,000).

Trading results for our trading subsidiary, Enterprise, show that the company returned a net loss (see note 5) of £145,663 (2019 £38,019). Given the high level of fixed costs in operating a fleet of boats (such as boat licensing, mooring costs, crew licensing and overheads), the significant reduction in turnover was only offset to a small extent by reductions in expenditure.

Under the terms of the Deed of Covenant entered into in 2019, Enterprise pays up to the Trust the lower of its taxable and distributable profits. Given that the payment made in respect of 2019 was significantly less than its net profit, a repayment of £25,000 of the long term working capital loan from the Trust was made in accordance with the terms of the Loan Agreement.

Two additional Loan Agreements were entered into in 2020. The first advanced an emergency loan of £40,000 to cover costs during the first lockdown. Given the continuing impact of the pandemic, this was replaced in August with a £100,000 loan facility, of which £60,000 has been drawn down to date. Before entering into these Loan Agreements, Trustees satisfied themselves that they were in accordance with charity law and the Trust’s charitable objects, and in particular that there was a reasonable prospect of them being repaid. Enterprise directors are required to confirm every six months that they expect the medium term loan to be repaid by the due date of 31 December 2025.

Cash balances declined during the year, from £562,676 to £457,067. Of this, £79,919 is in respect of Restricted Funds where grants that have been received in advance of the associated project being completed, as shown in Note 19. Nonetheless, free reserves held by Trust at the end of 2020 were £524,054. This remains well in excess of the target level of reserves set under the Reserves Policy.

Risk management

Trustees are developing a more formal risk management framework for Trust and Enterprise activities. This will include a corporate risk register, and risk registers for the main activities of the Group. A risk register has already been developed for Crofton Beam Engines, and health and safety risk assessments are in place for all activities involving volunteers, employees and members of the public which have been updated during the year to include Covid risks.

Risks relating to Trust and Enterprise activities fall under three main headings:

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

before Crofton reopened, to ensure that both preparatory work by volunteers and operations with members of the public were carried out in accordance with legal requirements (including under the Health and Safety at Work Act) and guidance from Government and from the Health and Safety Executive.

Following the development of a formal Reserves Policy in 2019, Trustees have reviewed regularly the financial risks facing the Trust, and in particular the impact of the pandemic. In the light of this, the Reserves Policy was amended in July 2020 to increase the target level of free reserves to £200,000. Given the continuing impact of the pandemic, Trustees confirmed in January 2021 that this minimum level of reserves should be maintained until the next review. This will be undertaken in July 2021, alongside consideration of revised five year projections for both Trust and Enterprise.

On the basis of the most recent projections, Trustees are satisfied that the Trust has sufficient balances to undertake the new activities and projects in 2021 identified in this report which support its charitable objects. In particular, the target level of reserves includes a funds to restore the Wash House at Aldermaston. Other major projects will be approved only to the extent that free reserves in excess of the target minimum level are available, or external grant funding has been committed.

Trustees agreed an update to the Finance Manual in 2020, and this will be reviewed in the light of any issues identified following the annual assessment of internal financial controls.

Structure, governance and management

The Trust was created by memorandum on 6th June 1962. It is governed by Articles of Association that were updated at the AGM in 2020 in particular to confirm that General Meetings may be held by electronic means. This document is the governing document of the charity which is a private company limited by guarantee without share capital.

Trustees are required to declare ‘Persons of Significant Control’ in the Companies House register. For the Trust there are no persons of significant control other than the Trustees listed. For our Enterprise trading company, the Trust has been listed as a legal entity with significant control. The declarations are available on the Companies House website.

There is currently no formal process for recruiting new Trustees. New Trustees are generally recommended by existing Trustees, and are then co-opted onto Trust Council ahead of standing for election at the following AGM. New Trustees may also be nominated by members for election at the AGM. Each year one third of Trustees stand down or offer themselves for re-election at the AGM. One of the recommendations of the strategy review was that a more formal process should be adopted to define portfolios for Trust Council members, with open recruitment in order to refresh membership.

The Trust Council (which is the Board of Directors of the company) currently comprises nine Trustees. It meets bi-monthly to review Health and Safety issues, consider overall Trust strategy and policy, in particular in the light of reports on the management accounts, and to take decisions on matters which are reserved to

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

Trust Council such as major expenditure commitments. The Trust is not required to appoint a Company Secretary and, following the resignation of the previous post holder during the year, it was decided not to appoint a new Secretary.

The Enterprise Board currently comprises seven Directors (only two of whom are also Trustees, so that the majority, including the Chairman, are non-conflicted). It also meets bi-monthly to review in more depth health and safety issues relating to the passenger boats, the Bruce boats, and the five cafés, and financial performance. As a commercial trading company, the Enterprise Board focusses particularly on budgets, financial performance, risk management and commercial viability. The Board provides regular reports to Trust Council.

The Trust’s eight branches (Bath & Bristol, Bradford on Avon, Devizes, Crofton, Bruce, Hungerford, Newbury and Reading) are each run by a Branch Committee which is formally a sub-committee of the Trust Council and usually elected by a meeting of local members, but subject to veto by Trust Council. Branches undertake the Trust’s work in their area and often have practical control of a boat (or boats) or other operations. Branches submit annual budget bids to Trust and Enterprise as appropriate and then have spending freedom within the approved budget subject to the provisions of the Finance Manual.

In addition, two members of staff provide a headquarters function supporting Trustees, Directors and branches, with a particular focus on Trust administration including matters such as insurance, managing boat booking, undertaking payments and banking, and ensuring compliance across a range of responsibilities.

Fundraising standards information

The Trust does not carry out significant fundraising activities.

Reference and administrative details

The Trust’s name is The Kennet and Avon Canal Trust and it is registered with Companies’ House with the reference 00726331, and with the Charity Commission in England and Wales with the reference 209206. The Trust’s trading company is called The Kennet & Avon Canal Trust (Enterprise) Limited and is registered with Companies’ House under the reference 02679756. The principal and registered office for the Trust is Devizes Wharf, Couch Lane, Devizes, SN10 1EB and for Enterprise is Canal Visitor Centre, Couch Lane, Devizes, Wiltshire, SN10 1EB.

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The Kennet & Avon Canal Trust (A company limited by guarantee)

Trustees’ annual report (incorporating the directors' report) for the year ended 31[st] December 2020

Directors and Trustees

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law. The Trustees serving during the year and since the year end were as follows (those marked * were also Directors of Enterprise):

Trustees M E Bailey C W Bolt (Treasurer) D A Copley R G H Dunton D J Fearns D A Line (appointed 6 July 2020, resigned 19 October 2020) L E Mundy (resigned 28 September 2020) T W Mundy C D Sims (Chairman) G P Snook P J Turvey In addition, the following were Directors of Enterprise: T J Pyatt (appointed 15 May 2020) C R Churchouse (Chairman) S B Eveleigh (resigned 31 December 2020) J M Foley D C Hanlon G S Puddephatt Advisers Independent Examiner Kerry Lawrance FCA Accountants Compass Accountants Limited The Tanneries East Street Titchfield Hampshire PO14 4AR Bankers Lloyds TSB Bank plc 38 Market Place Devizes Wiltshire SN10 1JD

Page 10

The Kennet & Avon Canal Trust IA compw Ilmlted by guarantse) Tru5te* annual report IIn¢orporatl￿ the directors, report) far the year ended 31 Deceml)er 2020 Statement of trustees. responslblll The trustees (who are also directors of The Kennet & Avon Canal Trust for the purpose of company lawl are responsible for preparing the Trustee5' Annual Report and the financial statements in accordance with applicable law and United ￿ngdoM Accountin8 Standards (United Kingdom Generally Accepted Accountin8 Practicèl. Company law requlres the trustee5 to prepare flnancial 5tatementsfor each financlal year whith give 3 true and fair view of the state of affair5 of the charstable company and the groupi and of the Incoming resources and application of resources, Includlng the income and expenditure. of the Charitable group for that period. In prepadng these flnanclal statements, the trustees are requlred to: select Suitable accourrting policie5 and then apply them con51Stentlyi observe the methods and principle5 in the Charltles SORP 2019 IFRS 102}; make judgements and estlmates that are reasonable and prudent,. stste vjhether appllcable UK Accountln8 Stsndards have been followed. subject to any material departure5 disclosed and explained in the financial statements: and prepare the financial statements on the 80in8 concern basis unless it 15 inappropriate to presume that the charitable company will contlnue in operation. The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anytlme the financlal posltlon of the charitable company and which enable them to ensure that the financial ststements comply with the Companles Att 2006. They are also responsible for 5afeguardlng the assets of the charitable company and the group and hencefortakin8 reasonable steps forthe P￿ventIon and detection of fraud and other irregularities. The trustees are responsible for the malntenance and inte8rtty of the corporate and flnancial informatk)n Included on the charltable companys webslte. Leg151atlon In the Unlted Kln8dom governlng the preparatlon and di55emination of financlal ststements may differfrom legislation in other jurisdittlons. Small company provlslons This report has been prepared in accordance with the special provlsions for small companle5 under Part 15 of the Companies Act 2006. On behalf of the board CDSims Director Date.. Page 11

The Kennet & Avon Canal Trnst (A ¢ompany Ilmited by guarant￿) Independent Examlntrfs Report lo the Trustses ofthe Kennet & Avon Canal Trust I report to the charty trustees on my examinatlon of the accounts of the company for the year ended 31 December 2020 which are Set out on pages 13 to 28. Responslbllltles and basls of report As the charity trustees of the ¢ompany land also its dlre¢tor5 for the purposes of company lawl you ire responslble for the preparation of the accounts in accordance wlth the requirements of the Companles Act 2CM)61'thÈ 2006 ACVI. Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Att and are eligible for Independent examination. I report In respect of my examination of your ompanvs accounts as carried out under section 145 of the Charities Act 2011 (the 2011 Act'l. In carryng out my examination I have followed the Directions given by the Charity Commission under section 145lSllbl of the 2011 Act. Independent examlnerfs statement Slnce the CoMpan￿S gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am member of the Instltute of Chartered Accountants in EnBland and Wales. I have completed my examination. I conflm that no matters have come to my attention in connertion wlth the examination 8ivln8 me cause to believe that In any material respect.. 11 accounting records We￿ not kept In respett of the company as requlred by settion 386 of the 2006 Act; or 21 the accounts do not accord wlth those ￿COrdS,. or 31 the accounts do not comply with the accounting requirements of section 396 of the 2(X16 Act other than any requirement that the accounts give a 'true and fair vleW which 15 not a matter considered as part of an independent examination,. or 41 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accountin8 and reporting by tharities applicable to charitles preparln8 thelr accounts accordance wlth the Flnanclal Reportln8 Standard applicable In the UK and Republlc of Ireland IFRS 1021. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn In thls report in order to enable a proper understandin8 of the account5 to be reached. Kerry iawrance FCA Institute of Chartered Accountants in En8land and Wale5. Venture House, The Tanneries East Street, TitchfSeld Hampshire P0144AR Date: l e HAeLH 20ZI P¥1• IZ

The Kennet & Avon Canal Trust (A company limited by guarantee)

Consolidated Statement of financial activities (incorporating the income and expenditure account) For the year ended 31[st] December 2020

Unrestricted Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
2
169,736
87,313
Commercial trading operations
5
54,912
-
Other trading activities
3
14,073
-
Investment income
4
1,566
-
Other income
9,298
-
Total income
249,585
87,313
Expenditure on:
Raising funds
6
7,891
-
Commercial trading operations
5
209,668
-
Charitable activities
7
148,964
87,260
Total expenditure
366,523
87,260
Net income/(expenditure)
(116,938)
53
Transfer between funds
(1,877)
1,877
Net movement in funds
(118,815)
1,930
Reconciliation of funds:
Total funds brought forward
1,239,734
77,989
Total funds carried forward
1,120,919
79,919		 2020
Unrestricted Restricted
Total
funds
funds
£
£
£
257,049
70,629
75,666
54,912
311,308
-
14,073
56,217
-
1,566
842
-
9,298
2,369
-
336,898
441,365
75,666
7,891
19,437
-
209,668
273,289
-
236,224
152,605
105,448
453,783
445,331
105,448
(116,885)
(3,966 )
(29,782)
-
(11,343)
11,343
(116,885)
(15,309 )
(18,439)
1,317,723
1,255,043
96,428
1,200,838
1,239,734
77,989		 2019
Total
£
146,295
311,308
56,217
842
2,369
517,031
19,437
273,289
258,053
550,779

(33,748)
-

(33,748)
1,351,471
1,317,723

The notes on pages 17 to 28 form an integral part of these financial statements.

Page 13

The Kennet & Avon Canal Trnst (A Company Ilmlted byguarnntse} Consolldated Balanc• Sheet as at 31" December 2010 Company number: 1x1726331 2020 2019 Flxed assets Tanglble assets 714,661 759,181 Current asset5 Debtors Cash at bank and In hand 15 55,739 457.067 39,954 562,676 512,806 602,630 Credltors: amountsfalllng due wlthln one year 116,3741 130,9211 Net current assets 496.432 571,709 Total assets le55 current liabilltles Provlslons for Ilabllltles 1,211,093 110,2551 1.330,89) 113.167) Net a55ets 1,2(Kl.838 1.317,723 Funds 17 Unrestrlcted funds Charltable subsldlaryfunds 738.476 382.443 711,628 528,IC6 Totsl unrestricted Incomè funds L120,919 1,239,734 Restrkted fund5 79,919 77.989 Totsl funds 1,200,838 1,317,723 The 8roup wa5 enutled to exemptbn from a￿lIt under sectltsn 477 of the Companles Art 2Q)6 relatin8 to small companies. Thè financial statements are prepared In accordance wth the provlslons avallable to companles sublect to the small eompanle5' regime. The financlal statements were approved and auth￿ised forlssue by the board and stgned on its behalf bv CDSlms Dlrertor Date: Th• b>)tes on pages 17 10 28fomi an Int•8rnl partof th•s• tlnandal statement Pa8e 14

The Kennet& Avon Canal Trust IA ¢ompany limlted by guaiantse) Bèlan¢e sheet as at 31" December 2020 Company numb•r. 00726331 2019 Flxed assets Tanglble assets Investments 13 273.841 283,064 274,841 284, Current assets Debtors Cash at bank and In hand I￿,160 431,363 139,242 377.222 549,523 516,464 Creditors: amounts falllni due wlthln one year 16 15.9691 110.9111 Net abrrent assets 543.SS4 S05,553 Net assets 818.395 789.617 Funds 17 Unrestntted income fuThJs 738.476 711,628 Re5trlrted Incornefunds 79,919 77,989 Total funds 818,395 789,617 The company was entltlÈd to exemption from audlt under section 477 of the Companles Act rlatin8 to small companle5. 7he flnandal statements are prepared in accordance wlth the provb5)ns avauable to companles sublttt to the small companles, rè8irne. Thellnanclal siatemtnts wère approved and autPw)rlsed for issue bythe board and ￿8n8d on Its behalF by CDSims Dlrector l G Ilc¥-a?iJ The notes on paps 17to 28forni an p•rtofihes• fknantlal staternents. Pale 15

The Kennet & Avon Canal Trust (A company limited by guarantee)

Cash flow statement

for the year ended 31[st] December 2020

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Interest income
Purchase of fixed assets
Sale of fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayment of borrowing
Net cash provided by (used in) financing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
Cash and cash equivalents at 31 December 2020
Net income/expenditure for the reporting period
Depreciation and impairment
Interest income
Loss on disposal of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Increase/(Decrease) in provisions for liabilities
Net cash provided by (used in) operating activities		 2020
Charity
£
54,449
1,566
(1,874)
-
(308)
-
-
54,141
377,222
431,363
28,778
11,097
(1,566)
-
-
21,082
(4,942)
-
54,449		 2020
Group
£
(103,926 )
1,658
(4,591)
1,250
(1,683 )
-
-
(105,609)
562,676
457,067
(116,885)
46,961
(1,658)
900
-
(15,785)
(14,547)
(2,912)
(103,926)		 2019
Group
£
33,596
842
(38,188)
-
(37,346)
-
-
(3,750)
566,426
562,676
(33,748)
50,493
(842)
537
1,567
10,918
1,320
3,351
33,596

Page 16

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

1 Accounting policies

1.1. Charity information

The Kennet & Avon Canal Trust is a private company limited by guarantee and incorporated in England and Wales. The registered office is Devizes Wharf, Couch Lane, Devizes, SN10 1EB.

The Kennet & Avon Canal Trust and its group meet the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy.

The principal objectives of the charity are detailed in the Trustees report.

1.2. Basis of accounting

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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

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

Basis of consolidation

The accounts of the trading subsidiary, The Kennet & Avon Canal (Enterprise) Ltd, are consolidated with the accounts of The Kennet & Avon Canal Trust in accordance with current legislation. Inter group income and expenditure is eliminated and all income and expenditure relates to external transactions only. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and section 24 of SORP 2019.

1.3. Fund accounting

Unrestricted funds are donations and other income received or generated by the objects of the charity without further specified purpose and are available as general funds.

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 accounts.

1.4. Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Grants are recognised in full in the statement of financial activities in the year to which they relate. Subscriptions are included in the statement of financial activities when received.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Page 17

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

1.5. Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Fundraising and publicity costs comprise the costs actually incurred in producing materials for promotional purposes and of raising funds through various fund raising events.

Support costs include governance costs which are costs associated with the governance arrangements of the charity and relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 8.

1.6. Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Freehold land - is not depreciated
Freehold buildings - 2% straight line
Leasehold properties - 5% straight line
Plant and machinery - 25% straight line
Fixtures and fittings - 15% reducing balance
Computer equipment - 20% straight line

1.7. Stock

Stock is valued at the lower of cost and net realisable value.

1.8. Defined contribution pension schemes

The pension costs charged in the financial statements represent the contribution payable by the charity during the year.

1.9. Termination benefits

The charity recognises a liability for termination benefits at the point where the charity is committed to making the payments in return for employee redundancy.

1.10. Financial Instruments

The Trust has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised when the company 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.

1.11. Going concern

There are no material uncertainties related to events or conditions that may cast significant doubt upon the charity’s ability to continue as a going concern.

Page 18

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31[st] December 2020

2. Donations and legacies

Group and Parent

Unrestricted
Restricted
funds
funds
£
£
Grants and donations
84,954
20,400
National Lottery Heritage Fund
-
55,681
Coronavirus Job Retention Scheme
-
11,232
Legacies
50,000
-
Subscriptions
24,473
-
Gift Aid Reclaims
6,268
-
Crofton Projects
-
-
Fundraising
4,041
-
169,736
87,313		 2020
Unrestricted
Restricted
Total
funds
funds
£
£
£
105,354
18,533
2,250
55,681
-
70,771
11,232
-
-
50,000
1,000
-
24,473
25,794
-
6,268
12,576
-
-
-
2,645
4,041
12,726
-
257,049
70,629
75,666		 2019
Total
£
20,783
70,771
-
1,000
25,794
12,576
2,645
12,726
146,295

3. Income from other trading activities

Group and Parent

Unrestricted
funds
£
Admissions
3,241
Crofton Car Park
645
Rent Received
10,187
14,073		 2020
Unrestricted
Total
funds
£
£
3,241
39,289
645
5,503
10,187
11,425
14,073
56,217		 2019
Total
£
39,289
5,503
11,425
56,217

4. Investment income

Group and Parent

Bank interest receivable

Unrestricted
funds
£
1,566
1,566		 2020
Unrestricted
Total
funds
£
£
1,566
842
1,566
842		 2019
Total
£
842
842

Page 19

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

5. Trading subsidiaries

The charity controls the companies listed below by holding a controlling interest in the equity share capital: -

Name of subsidiary Country of incorporation % Equity share capital held
The Kennet & Avon Canal (Enterprise) Ltd England & Wales 100
Company number - 02679756

The Kennet & Avon Canal (Enterprise) Ltd

The wholly owned subsidiary, Kennet & Avon Canal Trust (Enterprise) Ltd, operates boat trips and sales of gifts and souvenirs. A summary of the trading results are shown below:

Summary of trading results

Turnover
Total expenditure
Other income
Net profit for the year
Amount gift-aided to the charity
Retained profit
The assets and liabilities of The Kennet & Avon Canal (Enterprise) Ltd were:
Assets
Liabilities
Funds		 2020
£
54,870
(210,575)
10,042
(145,663 )
-
(145,663 )
474,126
(90,683)
383,443		 2019
£
301,268
(273,289)
10,040
38,019
(10,850)
27,169
675,360
(146,254)
529,106

Expenditure includes interest payable to the parent Charity of £908. Other income includes a grant transferred from the parent charity of £10,000. These transactions have been eliminated on consolidation in the group SOFA.

6. Expenditure on raising funds

Group and Parent

Unrestricted
funds
£
Costs of generating donations and legacies
7,891
7,891		 2020
Unrestricted
Total
funds
£
£
7,891
19,437
7,891
19,437		 2019
Total
£
19,437
19,437

Page 20

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

7. Activities undertaken directly

Group and Parent

Unrestricted
Restricted
funds
funds
£
£
Wages & Salaries
61,197
18,471
Employer's NIC
832
1,027
Employer's pension costs
1,056
-
Health & safety
4,526
-
Staff training
561
-
Recruitment
165
75
Rent
1,200
-
Rates
2,045
-
Coal
528
-
Light & heat
5,841
-
Repairs & maintenance
36,146
-
NLHF project costs
-
66,047
Insurance
8,402
-
Computer costs
1,209
-
Hire of office equipment
669
-
Travel costs
94
354
Telephone
3,966
-
Other office expenses
725
-
Printing, postage & stationery
638
-
Depreciation
9,811
1,286
Bank charges
1,150
-
Grants payable
1,683
-
Governance & support costs
6,520
-
148,964
87,260		 2020 Unrestricted
Restricted
Total
funds
funds
£
£
£
79,668
58,886
25,606
1,859
2,617
613
1,056
1,140
403
4,526
5,886
58
561
269
-
240
-
35
1,200
3,260
-
2,045
2,357
-
528
6,859
-
5,841
9,607
-
36,146
16,301
2,928
66,047
-
73,220
8,402
11,348
-
1,209
1,016
1,030
669
781
-
448
1,088
269
3,966
3,720
-
725
1,844
-
638
2,326
-
11,097
11,524
1,286
1,150
1,711
-
1,683
-
-
6,520
10,065
-
236,224
152,605
105,448		 2019
Total
£
84,492
3,230
1,543
5,944
269
35
3,260
2,357
6,859
9,607
19,229
73,220
11,348
2,046
781
1,357
3,720
1,844
2,326
12,810
1,711
-
10,065
258,053

8. Governance and support costs

Group and Parent

The Trust initially identifies the costs of its support functions. It then identifies those costs which relate to governance. Governance costs and other support costs are then apportioned to charitable activities in the year. Refer to the table below for the analysis of support and governance costs.

Governance
costs
£
Accountancy fees
3,048
Independent examination fee
1,200
Auditor remuneration
-
Other professional costs
2,272
6,520		 2020
Governance
Total
costs
£
£
3,048
2,958
1,200
-
-
4,860
2,272
2,247
6,520
10,065		 2019
Total
£
2,958
-
4,860
2,247
10,065

Page 21

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements for the year ended 31[st] December 2020

9. Net incoming resources for the year

Parent
2020 2019
£ £
Net outgoing resources is stated after charging:
Depreciation and other amounts written off tangible fixed assets 11,097 12,810
Independent examiner's remuneration 1,200 -
Auditors' remuneration - 4,860
Auditors' remuneration from non-audit work - 2,958

10. Employees

Parent

Employment costs
Employment costs
Wages and salaries
Social security costs
Pension costs
Other costs		 2020
£
79,668
1,859
1,056
801
83,384		 2019
£
84,492
3,230
1,543
304
89,569

No employee received emoluments of more than £60,000 (2019: None).

During this financial year 1 redundancy was identified and termination benefits of £16,000 (2019: £Nil) were paid.

Number of employees

The average monthly numbers of employees (including the trustees) during the year was as follows:

2020 2019
Number Number
2 5

No trustee received remuneration during the year (2019: £Nil). One trustee was reimbursed for travel expenses totaling £56 (2019: £62).

11. Pension costs

The company operates a defined contribution pension scheme. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and was as follows:

2020 2019
£ £
Pension charge 1,056 1,543

Page 22

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

12. Taxation

All of the charity's income is applied for charitable purposes and therefore the charity is exempt from corporation tax. The charity's trading subsidiary had a corporation tax liability of £Nil for the year ended 31[st] December 2020 (2019: £Nil).

13. Tangible fixed assets
Group
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019


Parent
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019		 Freehold
Fixtures,
land and Leasehold
Plant and fittings and
buildings
property machinery equipment
£
£
£
£
297,204
65,302
175,267
53,400
-
-
3,187
1,404
-
-
(3,500)
-
297,204
65,302
174,954
54,804
55,731
43,685
96,367
43,559
4,004
1,568
14,310
1,729
-
-
(1,350)
-
59,735
45,253
109,327
45,288
237,469
20,049
65,627
9,516
241,473
21,617
78,901
9,840
Freehold
Fixtures,
land and Leasehold Plant and fittings and
buildings
property machinery
equipment
£
£
£
£
297,204
65,302
40,862
53,400
-
-
470
1,404
-
-
-
-
297,204
65,302
41,332
54,804
55,731
43,685
30,729
43,559
4,004
1,568
3,796
1,729
-
-
-
-
59,735
45,253
34,525
45,288
237,469
20,049
6,807
9,516
241,473
21,617
10,133
9,841		 Boats
£
507,000
-
507,000
99,650
25,350
-
125,000
382,000
407,350
Boats
£
-
-
-
-
-
-
-
-
-
-		 Total
£
1,098,173
4,591
(3,500)
1,099,264
338,992
46,961
(1,350)
384,603
714,661
759,181
Total
£
456,768
1,874
-
458,642
173,704
11,097
-
184,801
273,841
283,064

Page 23

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

14. Fixed asset investments
Subsidiary
undertakings
Parent
shares
Total
£
£
Cost
At 1 January 2020 and
At 31 December 2020
1,000
1,000

Investments represent 100% of the issued share capital in The Kennet and Avon Canal Trust (Enterprise) Limited.

15. Debtors

Group
Trade debtors
Other debtors
Prepayments and accrued income
Parent
Trade debtors
Amounts owed by subsidiary and associated undertakings
Other debtors
Prepayments and accrued income		 2020
£
42,221
3,989
9,529
55,739
2020
£
40,819
70,023
685
6,633
118,160		 2019
£
4,253
9,536
26,165
39,954
2019
£
-
113,077
-
26,165
139,242

Page 24

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

16. Creditors: amounts falling due within one year

Group

Trade creditors
Other taxes and social security
Accruals
Parent
Trade creditors
Other taxes and social security
Accruals		 2020
£
11,224
-
5,150
16,374
2020
£
2,069
-
3,900
5,969		 2019
£
7,321
2,100
21,500
30,921
2019
£
1,763
1,648
7,500
10,911

17. Analysis of net assets between funds

Group

Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31 December 2020 as represented by:
Tangible fixed assets
654,242
60,419
Current assets
493,306
19,500
Current liabilities
(16,374)
-
Provisions
(10,255)
-
1,120,919
79,919
Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31 December 2019 as represented by:
Tangible fixed assets
697,477
61,704
Current assets
586,345
16,285
Current liabilities
(30,921)
-
Provisions
(13,167)
-
1,239,734
77,989		 Total
funds
£
714,661
512,806
(16,374)
(10,255)
1,200,838
Total
funds
£
759,181
602,630
(30,921)
(13,167)
1,317,723

Page 25

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

Parent

Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31 December 2020 as represented by:
Tangible fixed assets
213,422
60,419
Investment assets
1,000
-
Current assets
530,023
19,500
Current liabilities
(5,969)
-
738,476
79,919
Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31 December 2019 as represented by:
Tangible fixed assets
221,360
61,704
Investment assets
1,000
-
Current assets
500,179
16,285
Current liabilities
(10,911)
-
711,628
77,989		 Total
funds
£
273,841
1,000
549,523
(5,969)
818,395
Total
funds
£
283,064
1,000
516,464
(10,911)
789,617

18. Unrestricted funds

At
1 January
Incoming
Outgoing
31
2020
resources
resources
Transfers
£
£
£
£
Unrestricted funds
711,628
195,581
(166,856)
(1,877)
Trading subsidiary
528,106
64,912
(210,575)
-
Consolidation adjustments
-
(10,908 ) 10,908
-
1,239,734
249,585
(366,523)
(1,877)
At
1 January
Incoming
Outgoing
31
2019
resources
resources
Transfers
£
£
£
£
Unrestricted funds
754,106
140,907
(172,042)
(11,343)
Trading subsidiary
500,937
300,458
(273,289)
-
1,255,043
441,365
(445,331)
(11,343)		 At
December
2020
£
738,476
382,443
-
1,120,919
At
December
2019
£
711,628
528,106
1,239,734

Page 26

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

19. Restricted funds

Restricted funds
At At
1 January Incoming Outgoing 31 December
2020 resources resources Transfers 2020
£ £ £ £ £
Marina project 1,220 - - (1,220) -
Our Crofton Story (NLHF Project) fund
 76,269 55,681 (76,028) 4,497 60,419
President's fund 500 - - - 500
Bradford on Avon Projects fund - 5,000 - - 5,000
Bedwyn Wharf Development fund - 5,000 - - 5,000
Archimedean Screw conservation fund - 9,000 - - 9,000
Crofton Donation Box fund - 1,400 - (1,400) -
Coronavirus Job Retention Scheme Grant - 11,232 (11,232) - -
77,989 87,313 (87,260) 1,877 79,919
At At
1 January Incoming Outgoing 31 December
2019 resources resources Transfers 2019
£ £ £ £ £
Marina project 1,220 - - - 1,220
Crofton Projects fund - 2,645 (2,492) (153) -
Our Crofton Story (NLHF Project) fund
 94,958 70,771 (101,520) 12,060 76,269
Acramans Crane fund 250 - (250) - -
President's fund - 500 - - 500
Bristol City - Small Grant Big Improvement (SGBI) - 1,750 (1,186) (564) -
96,428 75,666 (105,448) 11,343 77,989

Purposes of restricted funds

The Marina Project funds were originally intended to be used towards a British Waterways funded research project into the feasibility of a marina at Foxhangers in 2004. As this is no longer a viable use for these restricted funds, it was agreed that they should be used to fund a joint project with the Canal & River Trust. The funds were used in the year to purchase a fingerpost installed at Dundas Wharf by the Bath & Bristol Branch.

The Crofton Projects fund comprises funds donated towards projects at Crofton, including conservation of the Archimedean Screw.

Crofton houses the world's oldest fully working beam engine. Our Crofton Story (NLHF Project) fund was created to conserve Crofton whilst developing our interpretation, activities and visitor facilities and secure Crofton for future generations. The project was accepted as complete by NLHF in December 2020.

The President's fund was set up by a donation from the Trust President to fund volunteers' travel expenditure, to be used at the discretion of the Trust Chairman.

The Coronavirus Job Retention Scheme Grant was used to pay staff during the pandemic.

20. Charges

The Trustees of the National Lottery Heritage Fund hold a legal charge over the freehold property known as The Old Pumping Station, Crofton, Marlborough, Wiltshire, SN8 3DW.

Page 27

The Kennet & Avon Canal Trust (A company limited by guarantee)

Notes to the financial statements

for the year ended 31[st] December 2020

21. Related party transactions

There are no related party transactions that require disclosure.

22. Ultimate parent undertaking

The ultimate controlling party is the Board of Trustee Directors.

23. Analysis of changes in net funds

Cash at bank and in hand
Net funds		 Opening
balance
£
562,676
562,676		 Cash
flows
£
(105,609)
(105,609)		 Closing
balance
£
457,067
457,067

24. Company limited by guarantee

The Kennet & Avon Canal Trust is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

25. Financial instruments

The carrying amounts of the charity’s financial instruments are as follows:

Financial assets
Debt instruments measured at amortised cost:
- Trade debtors (note 15)
- Other debtors (note 15)
Financial liabilities
Measured at amortised cost
- Trade creditors (note 16)
- Other taxes and social security (note 16)		 2020
£
42,221
3,989
46,210
11,224
-
11,224		 2019
£
4,253
3,845
8,098
7,321
2,100
9,421

Page 28

The Kennet & Avon Canal Trust (A company limited by guarantee)

The following pages do not form part of the statutory accounts.

The Kennet & Avon Canal Trust (A company limited by guarantee)

Detailed statement of financial activities

For the year ended 31 December 2020

or the year ended 31 December 2020
2020 2019
£ £ £ £
Income
Voluntary income:
Donations and legacies
Grants and donations 105,354 20,783
National Lottery Heritage Fund 55,681 70,771
Coronavirus Job Retention Scheme 11,232 -
Legacies 50,000 1,000
Subscriptions 24,473 25,794
Gift Aid Reclaims 6,268 12,576
Crofton Projects - 2,645
Fundraising 4,041 12,726
257,049 146,295
Other trading activities
Admissions 3,241 39,289
Crofton Car Park 645 5,503
Rent Received 10,187 11,425
14,073 56,217
Investment income
Bank interest receivable 2,474 842
Interest from trading subsidiary (908 ) -
1,566 842
Commercial trading operations
Commercial trading operations 64,912 311,308
Grant from parent to trading subsidiary (10,000 ) -
54,912 311,308
Total incoming resources from generating funds 327,600 514,662
Other income
Sundry Income 9,298 2,369
Gift aid from trading subsidiary - 10,850
Gift aid paid by trading - (10,850)
9,298 2,369
Total income 336,898 517,031

The Kennet & Avon Canal Trust (A company limited by guarantee)

Detailed statement of financial activities

For the year ended 31 December 2020

Expenditure
Raising funds:
Costs of raising funds:
Butty costs
Advertisement & Publicity
Fundraising costs
Total cost of raising funds
Commercial trading operations
Costs of trading subsidiaries
Interest on loan paid to parent
Total costs of raising funds
Charitable activities

Activities undertaken directly
Wages & Salaries
Employer's NIC
Employer's pension costs
Health & safety
Staff training
Recruitment
Rent
Rates
Coal
Light & heat
Repairs & maintenance
NLHF project costs
Insurance
Computer costs
Hire of office equipment
Travel costs
Telephone
Other office expenses
Printing, postage & stationery
Depreciation (unrestricted)
Grants payable
Bank charges
Total charitable activity expenditure		 2020
£
£
3,018
1,769
3,104
7,891
7,891
210,576
(908 )
209,668
217,559
79,668
1,859
1,056
4,526
561
240
1,200
2,045
528
5,841
36,146
66,047
8,402
1,209
669
448
3,966
725
638
11,097
1,683
1,150
229,704
229,704		 2019
£
£
6,085
4,623
8,729
19,437
19,437
273,289
-
273,289
292,726
84,492
3,230
1,543
5,944
269
35
3,260
2,357
6,859
9,607
19,229
73,220
11,348
2,046
781
1,357
3,720
1,844
2,326
12,810
-
1,711
247,988
247,988		 2019
£
£
6,085
4,623
8,729
19,437
19,437
273,289
-
273,289
292,726
84,492
3,230
1,543
5,944
269
35
3,260
2,357
6,859
9,607
19,229
73,220
11,348
2,046
781
1,357
3,720
1,844
2,326
12,810
-
1,711
247,988
247,988
19,437
273,289
-
273,289
292,726
247,988
247,988

The Kennet & Avon Canal Trust (A company limited by guarantee)

Detailed statement of financial activities

For the year ended 31 December 2020

Governance costs
Activities undertaken directly
Accountancy fees
Auditor remuneration
Independent examiner’s fee
Other professional costs
Total governance costs
Total expenditure
Net income/(expenditure)
for the year		 2020
£
£
3,048
-
1,200
2,272
6,520
6,520
453,783
(116,885)		 2019
£
£
2,958
4,860
-
2,247
10,065
10,065
550,779
(33,748)