REGISTERED COMPANY NUMBER: 00726331 (England and Wales) REGISTERED CHARITY NUMBER: 209206
Report of the Trustees and Consolidated Financial Statements for the Year Ended 31 December 2023
for Kennet and Avon Canal Trust (The)
Monahans Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ
Kennet and Avon Canal Trust (The)
Contents of the Consolidated Financial Statements for the Year Ended 31 December 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 6 |
| Independent Examiner's Report | 7 |
| Consolidated Statement of Financial Activities | 8 |
| Consolidated Balance Sheet | 9 |
| Charity Balance Sheet | 10 |
| Consolidated Statement of Cash Flows | 11 To 12 |
| Notes to the Consolidated Financial Statements | 13 to 24 |
| Detailed Statement of Financial Activities | 25 to 26 |
Kennet and Avon Canal Trust (The)
Report of the Trustees for the Year Ended 31 December 2023
The trustees who are also directors of the charity and its subsidiary for the purposes of the Companies Act 2006, present their report with the financial statements of the charity and its subsidiary for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
2023 in summary
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Income from grants, donations and legacies for the Trust as a whole was £105,800 (compared with £117,368 in 2022).
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Total charitable income was £184,311, a 13% increase on 2022.
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Commercial trading income in Enterprise decreased from £268,731 to £261,384, and this was lower than 2019 (£331,332). Operating costs, including staff, increased. All parts of the business performed below budget with overheads on the cafes causing a particular loss.
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Given project expenditure by the charity, overall cash balances fell from £430,945 at the start of the year to £359,420 at the end of the year. This was better than the figure of £310k, predicted in last year’s report.
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Group reserves at the year end were £1,063,189 consisting of £666,912 unrestricted reserves, £20,078 restricted reserves and £376,199 subsidiary company reserves.
Introduction
The Trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 December 2023 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 Purpose
The charitable objects of the Trust, as set out in its Articles of Association, are to:
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Promote, facilitate, and assist in the conservation, protection and improvement of the Kennet and Avon Canal and its associated watercourses, towpaths, structures and buildings;
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Advance the education of the public in general of the significance of the Kennet and Avon Canal and its associated structures;
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Protect and conserve, objects, sites and buildings of archaeological, architectural, engineering or historic interest on, in the vicinity of, or otherwise associated with the Kennet and Avon Canal; and
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Promote and facilitate recreational use of the Kennet and Avon Canal by a wide section of the community in order to improve conditions of life for the public.
The trustees have had due regard to the Charity Commissioner’s guidance on public benefit.
Page 1
Kennet and Avon Canal Trust (The)
Report of the Trustees for the Year Ended 31 December 2023
Review of 2023
(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.
At the end of 2023, the Group employed five members of staff (two full-time and three part-time), two at Crofton and three centrally managing boat bookings, administration and finance.
(b) Trust
The Trust operates mainly through its eight Branches.
Crofton Branch is responsible for running Crofton Beam Engines, a Grade 1 listed site housing the oldest beam engine in the world still in its original location and still able to perform its original task.
The site has continued to be managed in 2023 by a volunteer Site Manager with support from a full-time Assistant Site Manager, volunteer members of the Branch Committee, as well as about forty other regular volunteers. Urgent repairs to the chimney were completed at a cost of £23,400. The costs were met from a successful targeted fundraising campaign.
A ‘resilience’ review of operations at Crofton, to identify a route to financial sustainability through developing and expanding audiences was undertaken as planned using a grant from the National Lottery Heritage Fund. Discussions on how to move forward with this are continuing.
The Trust completed the purchase of the Smithy, the only building at Crofton site not owned by the Trust at a cost of £12k.
Two editions of the Trust’s magazine The Butty were published, which many members have opted to receive in digital form only.
A new website was launched.
(c) Enterprise
The Trust’s trading subsidiary, The Kennet and Avon Canal Trust (Enterprise) Ltd, operates public boat trips, holiday hire of boats adapted for use by disabled passengers, and a boat for use by community groups. It also licenses tea rooms at Bradford on Avon, Newbury and Aldermaston. 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. In addition, by paying profits to the Trust, the scope of the Trust’s activities can be expanded, so that Enterprise also supports the public benefit indirectly.
In 2023, trip boats and holiday hire activities were able to run from Easter to October, with additional public services at Christmas.
Maintaining the boat fleet owned by Enterprise involves significant fixed costs, for example in respect of licences, inspection by the MCA, mooring and insurance.
Significant legal costs associated with preparing new leases meant the three licensed cafés made a small loss to Enterprise in 2023.
The reduced trading and additional costs meant that Enterprise net profits were significantly reduced.
Page 2
Kennet and Avon Canal Trust (The)
Report of the Trustees for the Year Ended 31 December 2023
Review of 2023
(d) Administration and governance
The arrangements for administration of the Trust faced significant challenges in 2023. Trustees’ decision to delegate control of all branches except Crofton to Enterprise led to disagreements and decisions that the majority of trustees did not support. There were a number of new trustees and directors, and a few resignations. The major administrative change was that trustees decided in October that the Bruce branch would be run on a fully charitable basis in 2024 and managed within the Trust rather than Enterprise.
Health and Safety continued to be reviewed at all meetings of Trust Council and the Enterprise Board, including both accidents and near misses.
Three new Trustees were appointed during the year and the Trust entered 2024 with a new Chairman and Treasurer.
A number of Trust policies have been reviewed or updated during the year, and all are published on the Trust’s website
Risk management
Trustees are continuing to develop a more formal risk management framework for Trust and Enterprise activities. To support this, a corporate risk register has been prepared, and will be further developed and then reviewed on a regular basis. 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 reflect changes in Covid risks.
Risks relating to Trust and Enterprise activities fall under three main headings:
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Health and Safety risks: The health and safety of volunteers, staff and visitors is a key priority of the Trust. The Trust has established a Health and Safety Committee to keep its arrangements under review, and has a contract with a Health and Safety Advisor to carry out audits and advise on improvements. Each boat operated by Enterprise has a detailed safety manual, and crew training is an essential part of managing risks. These arrangements are overseen by the Director of Boats. Detailed risk assessments and method statements are also in place at Crofton.
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Financial risks: Financial risks include loss of income, failure to obtain grants for major projects, unexpected costs and losses through fraud or failure to achieve value for money in procurement. Cost risks include energy and fuel costs and unanticipated repair and regulatory costs particularly for Crofton Beam Engines, the Devizes Wharf building and the boats operated by the Enterprise subsidiary.
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Availability of other resources: Our ability to recruit, train, retain and motivate our volunteers becomes more challenging as fewer people are retiring early. As the work undertaken by volunteers becomes more complex through regulation and also broadens, with a greater emphasis on engaging with new visitor audiences, more formal succession plans and volunteer recruitment processes will be developed to help address this. Contingency plans are also being developed to reduce risks of staff non-availability and the loss of key volunteers.
Following the development of a formal Reserves Policy in 2019, Trustees have reviewed regularly the financial risks facing the Trust. The target minimum level of reserves, remains at £150K, given both the scale of capital commitments and continued uncertainty about both revenue and costs.
On the basis of the most recent projections, Trustees are satisfied that the Trust has sufficient balances to maintain current activities in 2024. Additional 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.
The Finance Manual is being reviewed in 2024.
Page 3
Kennet and Avon Canal Trust (The)
Report of the Trustees for the Year Ended 31 December 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The Trust was created by memorandum on 6th June 1962. It is governed by Articles of Association that were last updated in 2023. 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.
The Trust Council (which is the Board of Directors of the company) currently comprises 8 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, received reports from Branches and to take decisions on matters which are reserved to Trust Council such as major expenditure commitments. The Trust is not required to appoint a Company Secretary and the Treasurer also takes responsibility for governance matters.
A process of external advertising has been adopted for recruiting new Trustees. Following interview by the Chairman and at least one other Trustee, recommendations are made to the Board; if approved, new Trustees 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 and may offer themselves for re-election at the AGM.
In 2024, trustees are reviewing the purpose and need for Enterprise as a separate trading company, as required by Charity Commission guidance. No decision has yet been taken nor formal advice obtained.
The Enterprise Board comprises, at the date of this report, 5 Directors (only 2 of whom are also Trustees, so that the majority are non-conflicted). It also meets bi-monthly to review in more depth health and safety issues and operational matters relating to the passenger boats, the Bruce boats, and the three tea rooms, 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 selected 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 a Finance Manual approved by Trust Council.
In addition, 2 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.
REFERENCE AND ADMINISTRATIVE DETAILS
The Trust’s name is Kennet and Avon Canal Trust (The) and it is registered with Companies’ House with the reference 00726331, and with the Charity Commission for England and Wales with the reference 209206.
The Trust’s trading company is called The Kennet and 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.
Page 4
Kennet and Avon Canal Trust (The)
Report of the Trustees
for the Year Ended 31 December 2023
REFERENCE AND ADMINISTRATIVE DETAILS
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 R Bailey A E Cannon – appointed 22 May 2023 C W Bolt - resigned 2 November 2023 D A Copley – resigned 3 June 2023 R G H Dunton D J Fearns – resigned 3 June 2023 J S Dixon (Treasurer) – appointed 14 March 2024 T W Mundy G S Puddephatt * (Chairman) – appointed 30 November 2023 Z S E E Puddephatt – resigned 25 July 2023 T J Pyatt - resigned 31 May 2023 C D Sims* - resigned 12 November 2023 G P Snook S C Hill – appointed 7 November 2023 In addition, the following were Directors of Enterprise: D N Bone - appointed 24 February 2023, resigned 20 November 2023 C E Calder – resigned 12 November 2023 C R Churchouse - resigned 13 January 2023 J M Foley – resigned 19 April 2023 D C Hanlon Captain P S Hanson - appointed 24 February 2023), resigned 2 Nov 2023, reappointed 27[th] Nov 2023 S C Hill – appointed 27 November 2023 L P Hooper – resigned 17 July 2023 P B Kettel – appointed 15 May 2023 Bryan Baker – appointed 24 Feb 2023, resigned 10 10 Nov 2023 G P Snook – appointed 8[th] March 2024
Independent Examiner
James Gare FCA DChA Monahans Chartered Accountants County Gate, County Way Trowbridge Wiltshire BA14 8FJ
Banker
Lloyds Bank plc 38 Market Place Devizes Wiltshire SN10 1JD
Approved by order of the board of trustees on 20 May 2024 and signed on its behalf by:
........................................................................ G S Puddephatt - Trustee
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Kennet and Avon Canal Trust (The)
Report of the Trustees for the Year Ended 31 December 2023
Statement of Trustees' responsibilities
The Trustees (who are also directors of The Kennet & Avon Canal Trust for the purpose of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2019 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group 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 corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
On behalf of the board
G S Puddephatt Trustee
Date: 20 May 2024
Page 6
Independent Examiner's Report to the Trustees of Kennet and Avon Canal Trust (The)
Independent examiner's report to the trustees of Kennet and Avon Canal Trust (The) ('the Group')
I report to the charity trustees on my examination of the consolidated accounts of the Group for the year ended 31 December 2023.
Responsibilities and basis of report
As the trustees of the Trust (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Group are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountant in England and Wales.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Trust as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
James Gare FCA DChA The Institute of Chartered Accountants in England and Wales Monahans Chartered Accountants County Gate, County Way Trowbridge Wiltshire BA14 8FJ
Date: 24 May 2024
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Kennet and Avon Canal Trust (The)
Consolidated Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2023
| Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 105,800 Other trading activities 3 44,222 Commercial trading operation 12 261,384 Investment income 4 6,839 Other income 6,255 Total 424,500 EXPENDITURE ON Raising funds 5,581 Charitable activities Charitable activities 218,287 Commercial trading operations 256,073 Total 479,941 NET INCOME/(EXPENDITURE) (55,441) Transfer between funds (3,705) Net movement in funds (59,146) RECONCILIATION OF FUNDS Total funds brought forward 1,102,257 TOTAL FUNDS CARRIED FORWARD 1,043,111 |
2023 2022 Restricted Total Total funds funds funds £ £ £ - 105,800 117,368 21,195 65,417 40,133 - 261,384 268,731 - 6,839 3,054 - 6,255 2,405 21,195 445,695 431,691 - 5,581 6,734 26,329 244,616 232,548 - 256,073 237,523 26,329 506,270 476,805 (5,134) (60,575) (45,114) 3,705 - - (1,429) (60,575) (45,114) 21,507 1,123,764 1,168,878 20,078 1,063,189 1,123,764 |
|---|---|
The notes form part of these financial statements
Page 8
Kennet and Avon Canal Trust (The)
Consolidated Balance Sheet 31 December 2023
| Notes FIXED ASSETS Tangible assets 10 CURRENT ASSETS Stocks 13 Debtors 14 Cash at bank and in hand CREDITORS Amounts falling due within one year 15 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES PROVISIONS FOR LIABILITIES NET ASSETS FUNDS 16 Unrestricted funds Charitable subsidiary funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 705,271 4,759 13,964 339,342 358,065 (20,225) 337,840 1,043,111 - 1,043,111 |
Restricted funds £ - - - 20,078 20,078 - 20,078 20,078 - 20,078 |
2023 Total funds £ 705,271 4,759 13,964 359,420 378,143 (20,225) 357,918 1,063,189 - 1,063,189 666,912 376,199 20,078 1,063,189 |
2022 Total funds £ 697,211 11,686 10,740 430,945 453,371 (26,818) 426,553 1,123,764 - 1,123,764 726,906 375,351 21,507 1,123,764 |
|---|---|---|---|---|
The charitable group is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable group keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable group as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 20 May 2024 and were signed on its behalf by:
…..........................................
G S Puddephatt – Trustee
The notes form part of these financial statements
Page 9
Kennet and Avon Canal Trust (The)
Charity Balance Sheet 31 December 2023
| Notes FIXED ASSETS Tangible assets 10 Investments 11 CURRENT ASSETS Stocks 13 Debtors 14 Cash at bank and in hand CREDITORS Amounts falling due within one year 15 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 16 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 356,191 1,000 357,191 4,759 105,319 214,253 324,331 (14,610) 309,721 666,912 666,912 |
Restricted funds £ - - - - - 20,078 20,078 - 20,078 20,078 20,078 |
2023 Total funds £ 356,191 1,000 357,191 4,759 105,319 234,331 344,409 (14,610) 329,799 686,990 686,990 666,912 20,078 686,990 |
2022 Total funds £ 315,930 1,000 316,930 11,686 100,294 339,839 451,819 (20,336) 431,483 748,413 748,413 726,906 21,507 748,413 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 20 May 2024 and were signed on its behalf by:
…..........................................
G S Puddephatt - Trustee
The notes form part of these financial statements
Page 10
| Kennet and Avon Canal Trust (The) Consolidated Cash Flow Statement for the Year Ended 31 December 2023 2023 Notes £ Cash flows from operating activities Cash generated from operations 1 (25,102) Net cash provided by operating activities (25,102) Cash flows from investing activities Purchase of tangible fixed assets (53,262) Sale of fixed assets - Interest received 6,839 Net cash provided by investing activities (46,423) Change in cash and cash equivalents in the reporting period (71,525) Cash and cash equivalents at the beginning of the reporting period 430,945 Cash and cash equivalents at the end of the reporting period 359,420 |
2022 £ (8,269) (8,269) (68,422) - 3,054 (65,368) (73,637) 504,582 430,945 |
|---|---|
The notes form part of these financial statements
Page 11
Kennet and Avon Canal Trust (The)
Notes to the Consolidated Cash Flow Statement for the Year Ended 31 December 2023
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING | ACTIVITIES | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| £ | £ | |||
| Net income for the reporting period (as per the Statement of Financial | ||||
| Activities) | (60,575) | (45,114) | ||
| Adjustments for: | ||||
| Depreciation charges | 45,202 | 46,637 | ||
| Loss on disposal of fixed assets | - | - | ||
| Interest received | (6,839) | (3,054) | ||
| (Increase)/decrease in debtors | (3,224) | 889 | ||
| Decrease/(increase) in stocks | 6,927 | (11,686) | ||
| Increase/(Decrease) in provisions for liabilities | - | (10,255) | ||
| Increase/(Decrease) in creditors | (6,593) | 14,314 | ||
| Net cash provided by operations | (25,102) | (8,269) | ||
| 2. | ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1.1.23 | Cash flow | At 31.12.23 | ||
| £ | £ | £ | ||
| Net cash | ||||
| Cash at bank and in hand | 430,945 | (71,525) | 359,420 |
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Kennet and Avon Canal Trust (The)
Notes to the Financial Statements for the Year Ended 31 December 2023
1. ACCOUNTING POLICIES
Charity information
Kennet and Avon Canal Trust (The) is a private limited company limited by guarantee and incorporated in England and Wales. The registered office is Devizes Wharf, Couch Lane, Devizes, SN10 1EB.
Kennet and Avon Canal Trust (The) 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.
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.
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 Trust (Enterprise) Ltd, are consolidated with the accounts of Kennet and Avon Canal Trust (The) 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.
Income
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.
Expenditure
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.
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Kennet and Avon Canal Trust (The)
Notes to the Financial Statements for the Year Ended 31 December 2023
1. ACCOUNTING POLICIES – continued
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold land - is not depreciated Freehold buildings - 2% on straight line basis Long leasehold & boats - 5% on a straight line basis Plant and machinery - 25% on straight line basis Fixtures and fittings - 15% on reducing balance Computer equipment - 20% on a straight line basis
Boats are included in the accounts at deemed cost, based on historic valuations. This is a change from the previous accounting policy which was that the boats were revalued by the Directors based on current trading value.
Taxation
The charity is exempt from corporation tax on its charitable activities.
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.
Financial instruments
The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments, as defined by FRS102. The financial assets and liabilities and their measurement basis are as follows:
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank - is classified as a basic financial instrument and measured at fair value.
Financial liabilities - trade creditors, accruals and other creditors are financial instruments and are measured at amortised cost. Taxation and social security are not included in the financial instrument disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
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.
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Kennet and Avon Canal Trust (The)
Notes to the Financial Statements for the Year Ended 31 December 2023
2. DONATIONS AND LEGACIES
Group and charity
| Group and charity | ||
|---|---|---|
| Grants and donations Legacies Gift Aid Reclaims Subscriptions OTHER TRADING ACTIVITIES Group and charity Admissions Crofton car park Fundraising Rent received |
2023 £ 71,026 6,511 9,862 18,401 105,800 2023 £ 27,262 253 2,754 35,148 65,417 |
2022 £ 57,000 2,988 13,823 19,046 |
| 92,857 2022 £ 22,871 556 27,670 13,547 |
||
| 64,644 |
3. OTHER TRADING ACTIVITIES
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continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements – continued
for the Year Ended 31 December 2023
4. INVESTMENT INCOME
Group and charity
| Group and charity | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Bank interest receivable | 6,839 | 3,054 |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 2023 | 2022 | |
| £ | £ | |
| Independent examiner’s remuneration (excluding VAT) | ||
| Examination and preparation of the group accounts | 4,930 | 3,008 |
| Preparation of accounts for the trading subsidiary | 2,430 | 1,384 |
| Other services | - | 1,500 |
| Depreciation – owned assets | 45,202 | 46,637 |
| Hire of plant and machinery | - | 642 |
5. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
6. TRUSTEES’ REMUNERATION AND BENEFITS
There were no trustees’ remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31 December 2023 (2022: none).
7. STAFF COSTS
| Wages and salaries Pension The average monthly number of employees during the year was as follows: |
2023 £ 90,935 619 91,554 2023 5 |
2022 £ 77,512 541 78,053 2022 5 |
|---|---|---|
The average monthly number of employees during the year was as follows:
No employees received emoluments in excess of £60,000 (2022: None).
No employees received termination benefits during the year (2022: None).
Page 16
continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements – continued for the Year Ended 31 December 2023
8. COMPARATIVES FOR THE STATEMENT OF CONSOLIDATED FINANCIAL ACTIVITIES
| Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 117,368 Other trading activities 15,622 Commercial trading operations 268,731 Investment income 3,054 Other income 2,405 Total 407,180 EXPENDITURE ON Raising funds 6,734 Charitable activities Charitable activities 229,044 Commercial trading operations 237,523 Total 473,301 NET INCOME (66,121) RECONCILIATION OF FUNDS Total funds brought forward 1,168,378 TOTAL FUNDS CARRIED FORWARD 1,102,257 |
Restricted Total funds funds £ £ - 117,368 24,511 40,133 - 268,731 - 3,054 - 2,405 24,511 431,691 - 6,734 3,504 232,548 - 237,523 3,504 476,805 21,007 (45,114) 500 1,168,878 21,507 1,123,764 |
|---|---|
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continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements – continued for the Year Ended 31 December 2023
9. 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 2022 (2021: £Nil).
10. TANGIBLE FIXED ASSETS
Group
| COST At 1 January 2023 Additions At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 |
Freehold property £ 297,204 12,000 309,204 67,743 4,004 71,747 237,457 229,461 |
Long leasehold £ 127,133 40,555 167,688 51,480 6,687 58,167 109,521 75,653 |
Plant and machinery £ 184,178 - 184,178 133,442 7,225 140,667 43,511 50,736 |
Fixtures and fittings £ 59,120 707 59,827 49,059 1,936 50,995 8,832 10,061 |
|---|---|---|---|---|
| COST At 1 January 2023 Additions At 31 December 2032 DEPRECIATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 |
Boats Totals £ £ 507,000 1,174,635 - 53,262 507,000 1,227,897 175,700 477,424 25,350 45,202 201,050 522,626 305,950 705,271 331,300 697,211 |
|
|---|---|---|
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continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
10. TANGIBLE FIXED ASSETS - continued
Charity
| COST At 1 January 2023 Additions At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 COST At 1 January 2023 Additions At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 |
Freehold property £ 297,204 12,000 309,204 67,743 4,004 71,747 237,457 229,461 Totals £ 525,224 53,262 578,486 209,294 13,001 222,295 356,191 315,930 |
Long leasehold £ 127,133 40,555 167,688 51,480 6,687 58,167 109,521 75,653 |
Plant and machinery £ 41,767 - 41,767 41,012 374 41,386 381 755 |
Fixtures and fittings £ 59,120 707 59,827 49,059 1,936 50,995 8,832 10,061 |
|---|---|---|---|---|
11. FIXED ASSET INVESTMENTS
Charity
| Charity | |
|---|---|
| Unlisted | |
| investment | |
| £ | |
| MARKET VALUE | |
| At 1 January 2023 and 31 December 2023 | 1,000 |
| NET BOOK VALUE | |
| At 31 December 2023 | 1,000 |
| At 31 December 2022 | 1,000 |
There were no investment assets outside the UK. Investments represent 100% of the issued share capital in The Kennet & Avon Canal Trust (Enterprise) Limited.
Page 19
continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
12. SUBSIDIARY COMPANY
The charity has a wholly owned trading subsidiary, The Kennet & Avon Canal Trust (Enterprise) Limited, company number 02679756, which is incorporated in the United Kingdom. The principal activity of The Kennet & Avon Canal (Enterprise) Limited is to operate boat trips and sales of gifts and souvenirs.
A summary of the financial performance of the subsidiary is shown below:
| Turnover Total expenditure Other income Profit / (loss) |
2023 £ 248,257 (260,536) 13,127 848 |
2022 £ 264,107 (239,661) 4,624 29,070 |
|---|---|---|
The assets and liabilities of The Kennet & Avon Canal Trust (Enterprise) Limited were:
| Fixed and current assets Liabilities and provisions Total net assets Share capital and reserves |
2023 £ 475,927 (98,728) 377,199 377,199 |
2022 £ 477,710 (101,359) 376,351 376,351 |
|---|---|---|
Expenditure includes interest payable to the parent charity of £4,463 (2022: £2,138). This transaction has been eliminated on consolidation in the group Statement of Financial Activities.
13. STOCKS
| Group | Charity | |||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Stocks | 4,759 | 11,686 | 4,759 | 11,686 |
Page 20
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors Other debtors Amounts owed by group undertakings Prepayments and accrued income |
Group 2023 £ 681 1,727 - 11,556 13,964 |
2022 £ - 5,323 - 5,417 10,740 |
Charity 2023 £ 651 - 93,112 11,556 105,319 |
2022 £ - - 94,877 5,417 |
|---|---|---|---|---|
| 100,294 |
Included within amounts owed by group undertaking is an amount of £93,112 (2022: £94,877) that is falling due after more than one year.
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors Social security and other taxes Accruals and deferred income |
Group 2023 £ 8,265 626 11,334 20,225 |
2022 £ 18,968 1,376 6,474 26,818 |
Charity 2023 £ 5,476 289 8,845 14,610 |
2022 £ 15,422 304 4,610 |
|---|---|---|---|---|
| 20,336 |
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continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
16. MOVEMENT IN FUNDS
| Unrestricted funds General fund Trading subsidiary Restricted funds AIM/Pilgrim Trust grants Bruce Branch Project Tesco Groundwork - journey cam President’s fund Crofton 2030 TOTAL FUNDS |
At 1.1.23 £ 726,906 375,351 1,102,257 485 20,000 944 78 - 21,507 1,123,764 |
Net movement in funds £ (56,289) 848 (55,441) (485) - (1,230) - (3,419) (5,134) (60,575) |
Transfers between funds £ (3,705) - (3,705) - - 286 - 3,419 3,705 - |
At 31.12.23 £ 666,912 376,199 1,043,111 - 20,000 - 78 - 20,078 1,063,189 |
|---|---|---|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Trading subsidiary Consolidation adjustments Restricted funds AIM/Pilgrim Trust grants Tesco Groundwork – journey cam Crofton 2030 TOTAL FUNDS |
Incoming resources £ 167,579 261,384 (4,463) 424,500 1,122 694 19,379 21,195 445,695 |
Resources Movement expended in funds £ £ (223,868) (56,289) (260,536) 848 4,463 - (479,941) (55,441) (1,607) (485) (1,924) (1,230) (22,798) (3,419) (26,329) (5,134) (506,270) (60,575) |
|---|---|---|
Purposes of restricted funds
Crofton Beam Engines has received a grant in 2022 from the Association of Independent Museums/Pilgrim Trust. This was a Conservation grant, with initial expenditure incurred in 2022. Further costs were incurred in 2023, and the final grant payment was made on successful completion. A further AIM grant was approved in November 2023 under their New Stories New Audiences programme; grant receipts and expenditure will be in 2024.
A donation of £20K was received in 2022 to fund initial design work for a new accessible boat for the Bruce Boat fleet. No expenditure has yet been incurred.
A Tesco Community Grant was agreed, and the initial grant payment received in 2022. Initially, this was to for a Bruce Boats project. However, following a decision not to proceed with that project, Trustees agreed to seek approval to redirect this to Crofton to provide iPads to support the learning and engagement programme there. This change was approved by Tesco, and the project was completed in August 2023. The balance of costs was met from general funds.
The President’s Fund was set up by a donation from the Trust President to fund volunteer travel used at the discretion of the Trust Chairman.
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continued...
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
16. MOVEMENT IN FUNDS - continued
Purposes of restricted funds - continued
An application was made in December 2022 for a grant to the National Lottery Heritage Fund to support the Crofton 2030 project, designed to help Crofton Beam Engines retain its position as a premier heritage attraction, worthy of its Grade 1 listed status, and ensure that the Trust is able to keep the engines operating to 2030 and beyond. The project involved developing and testing ideas for increasing the number and range of people engaging with Crofton, and drawing up a Site Master Plan. The grant was approved in February 2023 and project was completed in December 2023. Trustees are considering the recommendations made.
Comparatives for movement in funds
| Unrestricted funds General fund Trading subsidiary Restricted funds AIM/Pilgrim Trust grants Bruce Branch Project Tesco Groundwork - journey cam President’s Fund TOTAL FUNDS |
At 1.1.22 £ 822,097 346,281 1,168,378 - - - 500 500 1,168,878 |
Net movement in funds £ (95,191) 29,070 (66,121) 485 20,000 944 (422) 21,007 (45,114) |
Net Transfers between funds £ - - - - - - - - - |
At 31.12.22 £ 726,906 375,351 1,102,257 485 20,000 944 78 21,507 1,123,764 |
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Trading subsidiary Consolidation adjustments Restricted funds AIM/Pilgrim Trust grants Bruce Branch Project Tesco Groundwork – journey cam President’s Fund TOTAL FUNDS |
Incoming resources £ 140,587 268,731 (2,138) |
Resources Movement expended in funds £ £ (235,778) (95,191) (239,661) 29,070 2,138 - |
Resources Movement expended in funds £ £ (235,778) (95,191) (239,661) 29,070 2,138 - |
|
|---|---|---|---|---|
| 407,180 3,386 20,000 1,125 - 24,511 431,691 |
(473,301) (2,901) - (181) (422) (3,504) (476,805) |
(66,121) 485 20,000 944 (422) 21,007 (45,114) |
17. 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 23
Kennet and Avon Canal Trust (The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
18. RELATED PARTY DISCLOSURES
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.
19. ULTIMATE PARENT UNDERTAKING
The ultimate controlling party is the Board of Trustee Directors.
20. COMPANY LIMITED BY GUARANTEE
Kennet and Avon Canal Trust (The) 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 it being wound up while he or she is a member, or within one year after he or she ceases to be a member.
Page 24
Kennet and Avon Canal Trust (The)
Detailed Statement of Financial Activities for the Year Ended 31 December 2023
| INCOME AND ENDOWMENTS Donations and legacies Grants and donations Gift aid Legacies Subscriptions Other trading activities Admissions Crofton car park Fundraising Rent received Investment income Interest receivable Interest from trading subsidiary Commercial trading operations Commercial trading operations Other income Sundry income Total incoming resources EXPENDITURE Raising funds Butty costs Advertisement & publicity Fundraising costs Commercial trading operations Costs of trading subsidiary Interest on loan paid to parent Total costs of raising funds Charitable activities Wages Pensions Hire of plant and machinery Rates and water Insurance Light and heat Telephone Postage and stationery Sundries Bank charges Grants payable Carried forward |
2023 £ 71,026 9,862 6,511 18,401 105,800 27,262 253 2,754 35,148 65,417 11,302 (4,463) 261,384 6,255 445,695 3,562 1,323 696 5,581 260,536 (4,463) 256,073 44,668 619 - 6,389 12,293 7,452 4,011 359 533 1,032 11,674 89,030 |
2022 £ 81,511 13,823 2,988 19,046 117,368 22,871 556 3,159 13,547 40,133 5,192 (2,138) 268,731 2,405 431,691 3,345 1,147 2,242 6,734 239,661 (2,138) 237,523 40,853 541 642 4,194 10,957 2,655 3,545 269 940 1,327 5,516 71,439 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 25
Kennet and Avon Canal Trust (The)
Detailed Statement of Financial Activities
| Charitable activities Brought forward Health & safety Staff training Recruitment Rent Repairs & maintenance Depreciation Coal NLHF project costs Computer costs Stock purchases Support costs Governance costs Independent examiner’s remuneration Accountancy fees Other professional costs Total resources expended Net expenditure |
for the Year Ended 31 December 2022 |
2023 £ 89,030 7,283 1,837 - 16,584 43,767 13,001 14,145 26,554 6,890 1,068 220,159 1,320 3,610 19,527 24,457 506,270 (60,575) |
2022 £ 71,439 7,229 216 115 3,020 114,481 13,113 4,707 3,504 4,645 895 223,364 1,200 3,308 4,676 9,184 476,805 (45,114) |
|---|---|---|---|
This page does not form part of the statutory financial statements
Page 26