2020-12-31-accounts

COMPANY REGISTRATION NUMBER: 1165589 CHARITY REGISTRATION NUMBER: 230387

Middleton Railway Trust Limited Company Limited by Guarantee

Unaudited Financial Statements

31 December 2020

Middleton Railway Trust Limited

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2020

	Pages
Trustees' annual report (incorporating the director's report)	1 to 5
Independent examiner's report to the trustees	6
Statement of financial activities (including income and expenditure account)	7
Statement of financial position	8
Notes to the financial statements	9 to 17

Middleton Railway Trust Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 December 2020

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2020.

Reference and administrative details

Registered charity name	Middleton Railway Trust Limited
Charity registration number	230387
Company registration number	1165589
Principal office and registered	The Station
office	Moor Road
	Leeds
	LS10 2JR
The trustees
	Mr C W Milner (Chairman)
	Dr A J Cowling (Secretary)
	Mr P Calvert (Treasurer)
	Mrs J E Auckland
	Mr M A Calvert
	Mr C Campbell
	Mrs J A Cowling
	Mrs S E Gill (retired 10th September 2020)
	Mr D Harpham (appointed 10th September 2020)
	Mr D J Hebden
	Mr M R Johnson (retired 10th September 2020)
	Mr J Linkins
	Mr A C Marsden
	Mr R G Pike
	Mr S J Roberts
	Mr R J Taggart
	Mr M Whitaker
Company secretary	Dr A J Cowling
Independent examiner	Susan Seaman, BA FCA CIOT
	Sagars Accountants Ltd
	Gresham House
	5-7 St Paul's Street
	Leeds
	LS1 2JG

1

Middleton Railway Trust Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Structure, governance and management

The Middleton Railway Trust Ltd is a company limited by guarantee and not having a share capital, and also a registered charity. As such its operation is governed by its memorandum and articles of association, under which the members of its council are both the directors of the company (as stated above) and also the trustees of the charity. Members of the council are elected annually, by the members of the company at its annual general meeting.

All policy decisions are made by the council, although for major long-term issues decisions are where possible brought to general meetings for consideration. In particular the council sets budgets annually for all of the company’s activities, and monitors these at its monthly meetings. Within this framework many specific areas of responsibility are delegated to individual members of the council who have relevant expertise, including where appropriate the control of detailed expenditure within the allocated budgets. The possession of the relevant expertise is in practice one of the primary considerations of the members of the company in determining whom to elect as members of the council, and hence there is little need for formal induction training for members of the council.

Objectives and activities

The primary object of the company, as set out in its memorandum of association, is to preserve in working condition the historic Middleton Colliery Railway for the benefit of the public. The other seventeen objects are intended to further this, and as well as covering specific activities that contribute to running such a railway and to supporting the company as a charitable organisation, these other objects include establishing a railway museum, exhibiting locomotives and other items in it, and promoting the study of these artefacts and of rail transport generally.

These objects are therefore deliberately set very broadly, and to help focus on them the council has set a number of strategic goals, which had included establishing a museum. Once this had been achieved by registering the whole railway as a museum, these goals were reviewed at the annual general meeting in 2006, and now are:

• to extend the passenger line to Middleton Park;

• to increase our passenger figures to 300 per operating day;

• to restore all our rolling stock to at least display condition;

• to build at least one new steam locomotive boiler every ten years;

• to run a daily service during August;

• to construct a terminus at Balm Road, so that trains can be operated regularly to it; and

• to attract “new blood” to the railway to lower the age profile of the membership.

During 2020 the Council initially continued to work on reviewing these, as part of the creation of the five-yearly business plan for 2021 to 2025. This identified a long list of possible goals, but the work on whittling these down to a manageable number was then overtaken by the need to manage the major issues that arose from the impact of the CoViD-19 pandemic. In particular, these issues included having to curtail substantially our train services so that they only ran for three months of the year, and having to cancel virtually all of the special events that had been planned for the year, including the Santa special trains and the ones that were specifically intended to mark the celebration of the railway’s diamond jubilee.

Another of these issues that needed to be managed was the impact on the volunteer input, since all activities of the company are undertaken by its members on a voluntary basis, and the company has never had any paid employees at all. This volunteer input has been increasing steadily in recent years, and under normal circumstances would have been roughly equivalent to about fourteen full-time staff, but the pandemic affected both the number of volunteers (since some decided that they needed to shield themselves) and the numbers that we could safely allow on site at any one time. Despite this, careful planning of the work involved meant that we were able to continue with many of the projects in the engineering area for restoration of the railway’s rolling stock.

Alongside this, we were able to take advantage of grants from the National Lottery Heritage Fund, through their Emergency and Culture Recovery programmes, and also grants from other sources. These enabled us to continue work on other planned projects, by replacing the income that we were not able to earn and that would have been needed to supplement the substantial legacy which had been bequeathed to the railway by the late Richard Holland. By early 2020 the final fitting out of the carriage shed was largely complete, and then the combination of these grants and the inability to operate train services meant that by the end of the year we were able to start work on two new projects: one to construct a mezzanine floor at the north end of the Engine House display hall, and the other to refurbish the Conference Room in the Engine House.

2

Middleton Railway Trust Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Public Benefit

A key element in the objectives that are defined above is that the historic nature of the Middleton Colliery Railway means that the activities of both preserving it and educating people about it are recognised by the Charity Commission as giving rise to a public benefit, which indeed was the basis for originally registering the company as a charity. The continuance of this public benefit then follows from the efforts made by the charity to open its facilities to the public, so that they are able to visit the Engine House and ride on the trains, and hence be educated by the museum displays and by experiencing for themselves the operation of a historic railway. The various lockdowns meant that we were only able to open to the public for three months of the year, and so reduced substantially the extent to which we could provide these benefits: the only additional educational activity in which we were able to participate during 2020 was the heritage open days during September.

Under normal circumstances a major concern for the council, as trustees of the charity, is to balance the conflicting requirements of setting fares and other charges at a level that will provide adequate income, while keeping them low enough that they will not discourage members of the public from visiting the railway and hence will not adversely affect the public benefit that the charity provides. During 2020 this concern was largely replaced by that of managing the reduction in income that resulted from the pandemic, although this was greatly assisted by the way in which the reserves policy had been implemented, which meant that at least this reduction did not pose an existential threat to the organisation. In managing these issues and the activities of the charity during the year, the council confirms that it has paid due regard to the guidance provided by the Charity Commission on public benefit.

Achievements and Performance

The effects of the pandemic mean that there is little point in trying to make comparisons of any aspects of the performance with previous years. The lockdowns meant that we were only able to run trains on many fewer days and were not able to run any special train services; the need for additional cleaning meant that we were only able to run fewer trains on each day; and the need for social distancing meant that although we were able to use three carriages, we were only able to carry a maximum of three quarters of the normal number of passengers on a train.

As noted above, despite the pandemic we were able to make progress with some engineering projects, so that as well as completing most of the fitting out of the carriage shed we had been able to continue work on the overhauls of three steam locomotives, although progress on all of them was slowed down significantly. Consequently, although the Sentinel had been steam tested successfully towards the end of 2019, work was still in progress on its re-assembly at the end of 2020. Similarly, the work on the boiler of “No. 6” that was being done by Northern Steam Engineering Ltd was delayed, so that it was not until September that it returned and was fitted into the locomotive frames. And the work of assessing the chassis components of “Sir Berkeley”, replacing some pins and bushes, and re-machining the rest, continued but more slowly than had originally been intended, so that the deadline for completing this overhaul has had to be put back to the end of 2021. Progress also continued with three other projects, but again more slowly than had been planned. One of these was the overhaul of the diesel locomotive Hunslet 6981, which has now largely been fitted for vacuum braking, so that work has moved on to re-building the bonnet and repairing the platework of the frames. The second project was the rebuild of the LMS brake van, which was finally completed early in 2021, so that the van is now on display; and the third was finishing the work on the Palvan, where shelving was fitted in the interior so that it could resume its role as a tool van, but the vacuum brake cylinder still needs overhauling.

Alongside these two new projects were started. One was to acquire a pipe wagon from which the sides had already been removed, and remove from it the ends and replace the timber deck, so as to provide an additional flat wagon. The other was to acquire a fourth PMV with a view to eventually converting it into a fourth coach, where the need to run all three coaches during 2020 raised the priority of this project significantly. Since such a conversion would help to increase the sustainability of our operation, part of the grant that we were able to obtain through the Culture Recovery programme covered most of the costs of it, and so preliminary work started on the conversion during the year, although the construction of the new bodywork will have to wait until there is sufficient volunteer labour available.

3

Middleton Railway Trust Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Financial review

As indicated above, during 2020 managing the finances of the company has had to focus mainly on coping with the consequences of the corona virus pandemic, and the statement of financial activities clearly shows impact of these consequences. Specifically, the income from charitable activities reduced from £95,670 in 2019 to £9,228 in 2020, and the associated trading income reduced from £36,279 to £11,701. In response to this, the Council took action to reduce the general expenditure as far as practical, as indicated in the statement of financial activities by the reductions in advertising etc (down from £5,265 in 2019 to £1,775, as detailed in note 8 to the accounts); in shop costs (down from £12,136 in 2019 to £3,831, as detailed in note 9); and in support costs (down from £45,181 in 2019 to £28,756, as detailed in note 12). Further reductions in expenditure came from deferring work on various projects, although overhauls of locomotives had to continue, and in particular for No. 6, where the final bills during the year for the boiler work totalled £24,683, which was financed from legacy funds. In place of these deferrals, the success in gaining grants from the programmes administered by the National Lottery Heritage Fund enabled some new projects to be started: notably the ones to construct the mezzanine floor in the Engine House Display Hall and to refurbish the conference room, and to convert a PMV to form a fourth coach.

Such grants are typically paid over in instalments, and so at the end of the year there had been significant expenditure of grant money that was still to be claimed as the next instalments of the grant became due. Specifically, the restricted grant income of £27,614 that is shown in notes 5 and 23 represents the first instalments of this income, and this was all spent during the year. The deferred income of £83,243 that is shown in note 21 then represents the rest of the grants, when they can be claimed.

The rest of the restricted expenditure of £48,787, which is shown in note 10, is then the depreciation which has to be charged on the Engine House and Picton Shelter buildings, which had been financed originally by the Heritage Lottery Fund. Over the long term it will be important that the company builds up sufficient funds, so that eventually it will be able to afford the major capital expenditure that will be required to keep in good condition both these buildings that were constructed with these grants, and the others on the Moor Road site. Fortunately, given the more immediate problems that have been created by the corona virus pandemic, the need for this kind of expenditure is currently a long way off.

The combined effect of these two situations is that the increase in total net expenditure, from £37,151 in 2019 to £75,223 in 2020, does not represent as serious a problem as might initially be supposed. On the other hand, it is clear that while an excess of expenditure over income of this magnitude can be tolerated for one year, given the extraordinary circumstances, in the longer term such an excess of expenditure over income is nowhere near a sustainable situation, and reducing it for the future will need to be managed carefully.

For the statement of financial position, the net current assets that are shown of £198,418 consist of the legacy fund (mainly from the late Richard Holland, but now also including other smaller legacies), plus what are effectively the company’s general financial reserves. Here one effect of the expenditure mentioned above is that the legacy fund is now down to £100,795 of this total (compared with £128,272 in 2019), so that the general reserves amounted to £97,623. The company’s reserves policy is that, to allow the charitable activities to be managed efficiently and to provide a buffer for uninterrupted services, they should if possible amount to at least £46,000, and could rise above this by up to £100,000 if funds were being built up for major future projects. The impact of the corona virus pandemic during 2020 had made it clear that maintaining this level of reserves is a necessity rather than a luxury, and the similar impact during the early part of 2021 has strongly reinforced this message.

Managing the company’s finances also involves managing the risks to which it is potentially exposed, where as far as possible the financial risks are controlled by the council through its budgeting and monitoring process. Other kinds of risks, such as the possibilities of theft and vandalism, are not so easily controlled (as previous history has demonstrated), and so an increasing amount of effort and attention is having to be given to improving security as far as this is possible.

The other significant form of risk covers the various health and safety hazards which may arise, and particularly from the operation of trains and other railway activities. Over the years the company has developed a sound safety management system to deal with these, where this system is appropriate to its organisational structure, and ensures that the associated risks are controlled so as to be as low as reasonably practical and that any changes in risk are managed appropriately. The documentation for this system is all published on the company’s internal web site, since it needs to be easily accessible by members of the railway. The regulatory expectations for safety management continue to increase steadily, and in particular during 2020 the company has been working on applying the maturity model (known as RM3) which has been developed for measuring the quality of the safety management systems on heritage railways (and more generally on the national network). The provision of training for members is an important part of this work, but this activity too has been a victim of the corona virus pandemic, and so it will need to be rebuilt during 2021.

Finally, the company confirms that it does not hold any funds as custodian trustee for any other body.

4

Middleton Railway Trust Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Plans for future periods

Given what has been said above about the impact of the corona virus pandemic during 2020, and that this impact has continued well into 2021, it is difficult to say much with any certainty about plans even for the rest of 2021, let alone further ahead. Work continues to focus on completing the current overhauls of all three steam locomotives (the Sentinel, “No. 6” and “Sir Berkeley”), and it has already been agreed that the next overhaul to be started will be of “Slough Estates No. 3”. Alongside these, the construction of the mezzanine floor in the display hall means that a lot of work is now having to be done to reinstate museum exhibits, and where possible improve their interpretation so as to make them more accessible to the public. Also additional facilities have been provided on the mezzanine floor for storage of archives and related material, and so this will all have to re-arranged to bring the new facilities into use, as well as continuing with the work of cataloguing the railway’s museum collection and preparing for its re-accreditation as a museum.

The effects of the pandemic have also emphasised the importance of continuing to find ways of generating as much income as possible from the operation of the railway. For the immediate future this will focus mainly on trying to rebuild the approaches that had been interrupted by the pandemic, such as promoting and running schools days and other activities so as to achieve the company’s goals for education and outreach. In particular we hope to be able to restart some part of our special events programme during the later part of 2021, most notably our Santa Special trains. We also hope to resume hiring out coaches on ordinary passenger trains for birthday parties, as well as encouraging other forms of party bookings. These will then lay a foundation for us to plan a more ambitious programme for 2022.

The trustees' annual report and the strategic report were approved on 12th August 2021 and signed on behalf of the board of trustees by:

Dr A J Cowling (Secretary)

5

Middleton Railway Trust Limited

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Middleton Railway Trust Limited

Year ended 31 December 2020

I report to the trustees on my examination of the financial statements of Middleton Railway Trust Limited ('the charity') for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

Having satisfied myself that the accounts of the company 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 the 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

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:

1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2. the financial statements do not accord with those records; or

3. the financial statements 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

4. the financial statements 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.

Susan Seaman, BA FCA CIOT Sagars Accountants Ltd Independent Examiner

Gresham House 5-7 St Paul's Street Leeds LS1 2JG

6

Middleton Railway Trust Limited

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2020

			2020		2019
		Unrestricted
		funds	Restricted funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	24,500	27,614	52,114	41,572
Charitable activities	6	9,228	–	9,228	95,670
Other trading activities	7	11,701	–	11,701	36,279
		───────	───────	───────	─────────
Total income		45,429	27,614	73,043	173,521
		═══════	═══════	═══════	═════════
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies	8	1,775	–	1,775	5,265
Costs of other trading activities	9	3,831	–	3,831	12,136
Expenditure on charitable activities	10,11	93,873	48,787	142,660	193,271
		───────	───────	─────────	─────────
Total expenditure		99,479	48,787	148,266	210,672
		═══════	═══════	═════════	═════════
		───────	───────	─────────	─────────
Net expenditure and net movement in	funds	(54,050)	(21,173)	(75,223)	(37,151)
		═══════	═══════	═════════	═════════
Reconciliation of funds
Total funds brought forward		551,091	601,354	1,152,445	1,189,596
		─────────	─────────	───────────	───────────
Total funds carried forward		497,041	580,181	1,077,222	1,152,445
		═════════	═════════	═══════════	═══════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 17 form part of these financial statements.

7

Middleton Railway Trust Limited

Company Limited by Guarantee

Statement of Financial Position

31 December 2020

		2020		2019
	Note	£	£	£	£
Fixed assets
Tangible fixed assets	17		878,804		901,840
Current assets
Stocks	18	7,483		8,114
Debtors	19	18,983		22,197
Cash at bank and in hand		265,981		231,310
		─────────		─────────
		292,447		261,621
Creditors:amounts falling due within
one year	20	(94,029)		(11,016)
		─────────		─────────
Net current assets			198,418		250,605
			───────────		───────────
Total assets less current liabilities			1,077,222		1,152,445
			───────────		───────────
Net assets			1,077,222		1,152,445
			═══════════		═══════════
Funds of the charity
Restricted funds			580,181		601,354
Unrestricted funds			497,041		551,091
			───────────		───────────
Total charity funds	23		1,077,222		1,152,445
			═══════════		═══════════

For the year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

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

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

These financial statements were approved by the board of trustees and authorised for issue on 12 August 2021, and are signed on behalf of the board by:

Dr A J Cowling (Secretary)

The notes on pages 9 to 17 form part of these financial statements.

8

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 December 2020

1. General information

Middleton Railway Trust Limited works to preserve in working condition the historic Middleton Colliery Railway for the benefit of the public. The company is a company limited by guarantee (registered number 1165589), which is incorporated and domiciled in the UK. The address of the registered office is The Station, Moor Road, Leeds, LS10 2JR.

The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2. Statement of compliance

The financial statements have been prepared under the historical cost convention, with items recognised as cost unless otherwise stated in relevant notes to these financial statements, and 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 (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

3. Accounting policies

Local authority grants

Local authority grants in respect of capital expenditure are deducted from the cost of the relevant fixed asset when that cost is incurred. The grant received from the Heritage Lottery Fund during the year has been credited to the Statement of financial activities as a restricted fund.

Basis of preparation

Middleton Railway Trust Limited meets the definition of a public benefit entity under FRS 102.

The trustees have taken the exemption permitted by the SORP to not include a cash flow statement in the financial statements.

Going concern

The directors have reviewed the level of reserves, known income and planned expenditure and have no material uncertainties about the charity’s ability to continue as a going concern.

Disclosure exemptions

The charity has taken the exemption from producing a cash flow statement as permitted under the Charities SORP.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

9

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

All fixed assets are initially recorded at cost.

10

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Buildings	-	Straight line basis over 40 years since 1996, 10 years for fencing
Tools and spares	-	Straight line basis over 10 years, 5 years for electronic equipment
Locomotives and rolling stock	-	Straight line basis over 10 years

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

11

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

4. Limited by guarantee

The company is limited by guarantee and has no share capital.

5. Donations and legacies

			Unrestricted	Restricted	Total Funds
			Funds	Funds	2020
			£	£	£
	Donations
	Donations		14,500	–	14,500
	Grants
	Heritage Lottery Fund		–	27,614	27,614
	Government grant income		10,000	–	10,000
			───────	───────	───────
			24,500	27,614	52,114
			═══════	═══════	═══════
			Unrestricted	Restricted	Total Funds
			Funds	Funds	2019
			£	£	£
	Donations
	Donations		31,572	10,000	41,572
	Grants
	Heritage Lottery Fund		–	–	–
	Government grant income		–	–	–
			───────	───────	───────
			31,572	10,000	41,572
			═══════	═══════	═══════
6.	Charitable activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2020	Funds	2019
		£	£	£	£
	Regular passenger tickets	7,167	7,167	48,639	41,908
	Other special events	96	96	3,134	9,865
	Santa receipts	1,965	1,965	43,897	43,897
		──────	──────	───────	───────
		9,228	9,228	95,670	95,670
		══════	══════	═══════	═══════
7.	Other trading activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2020	Funds	2019
		£	£	£	£
	Fundraising events	810	810	–	–
	Shop income	2,375	2,375	20,755	20,755
	Hire of facilities	625	625	10,985	10,985
	Members subscriptions	5,199	5,199	4,539	4,539
	Sale of scrap	2,692	2,692	–	–
		───────	───────	───────	───────
		11,701	11,701	36,279	36,279
		═══════	═══════	═══════	═══════

12

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

8. Costs of raising donations and legacies

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2020	Funds	2019
		£	£	£	£
	Advertising, leaflets and distribution	1,775	1,775	5,265	5,265
		══════	══════	══════	══════
9.	Costs of other trading activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2020	Funds	2019
		£	£	£	£
	Costs of other trading activities - Shop costs	3,831	3,831	12,136	12,136
		══════	══════	═══════	═══════
10.	Expenditure on charitable activities by fund type
			Unrestricted	Restricted	Total Funds
			Funds	Funds	2020
			£	£	£
	Railway running costs		77,657	36,247	113,904
	Support costs		16,216	12,540	28,756
			───────	───────	─────────
			93,873	48,787	142,660
			═══════	═══════	═════════
			Unrestricted	Restricted	Total Funds
			Funds	Funds	2019
			£	£	£
	Railway running costs		122,363	25,727	148,090
	Support costs		35,181	10,000	45,181
			─────────	───────	─────────
			157,544	35,727	193,271
			═════════	═══════	═════════
11.	Expenditure on charitable activities by activity type
		Activities
		undertaken		Total funds	Total fund
		directly	Support costs	2020	2019
		£	£	£	£
	Railway running costs	113,904	26,266	140,170	190,729
	Governance costs	–	2,490	2,490	2,542
		─────────	───────	─────────	─────────
		113,904	28,756	142,660	193,271
		═════════	═══════	═════════	═════════

13

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

12. Analysis of support costs

		Railway running
		costs	Total 2020	Total 2019
		£	£	£
	Premises	4,399	4,399	8,306
	General office	5,232	5,232	6,382
	Governance costs	2,490	2,490	2,542
	Event costs	714	714	2,538
	Administrative costs	8,967	8,967	10,053
	Repairs and maintenance	6,954	6,954	15,360
		───────	───────	───────
		28,756	28,756	45,181
		═══════	═══════	═══════
13.	Net expenditure
	Net expenditure is stated after charging/(crediting):
			2020	2019
			£	£
	Depreciation of tangible fixed assets		38,052	37,700
			═══════	═══════
14.	Independent examination fees
			2020	2019
			£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial statements		2,400 ══════	2,440 ══════

15. Staff costs

No value has been placed in the financial statements on the work performed by volunteers in the running of the Railway's facilities.

The average head count of employees during the year was Nil (2019: Nil).

No employee received employee benefits of more than £60,000 during the year (2019: Nil).

16. Trustee remuneration and expenses

The council members were not paid or received any other benefits from employment, neither were they reimbursed expenses during the year (2019 £nil). No member of the council received payment for professional or other services supplied to the charity (2019 £nil).

14

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

17. Tangible fixed assets

	Freehold	Fixtures and	Locomotives &
	property	fittings	Rolling Stock	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2020	1,137,586	33,646	87,152	47,394	1,305,778
Additions	7,873	132	7,011	–	15,016
	───────────	───────	───────	───────	───────────
At 31 December 2020	1,145,459	33,778	94,163	47,394	1,320,794
	═══════════	═══════	═══════	═══════	═══════════
Depreciation
At 1 January 2020	363,874	3,696	36,368	–	403,938
Charge for the year	29,882	947	7,223	–	38,052
	───────────	───────	───────	───────	───────────
At 31 December 2020	393,756	4,643	43,591	–	441,990
	═══════════	═══════	═══════	═══════	═══════════
Carrying amount
At 31 December 2020	751,703	29,135	50,572	47,394	878,804
	═══════════	═══════	═══════	═══════	═══════════
At 31 December 2019	773,712	29,950	50,784	47,394	901,840
	═══════════	═══════	═══════	═══════	═══════════

Fixed assets are depreciated in accordance with the policy stated in note 1. All the fixed assets are held to meet the charity's objectives.

There is a legal charge over the building in favour of the Heritage Lottery Fund to ensure that the building is used for the purpose specified in their grant.

18. Stocks

		2020	2019
		£	£
	Raw materials and consumables	7,483	8,114
		══════	══════
19.	Debtors
		2020	2019
		£	£
	Trade debtors	–	12,233
	Prepayments and accrued income	11,408	5,838
	Other debtors	7,575	4,126
		───────	───────
		18,983	22,197
		═══════	═══════
20.	Creditors: amounts falling due within one year
		2020	2019
		£	£
	Trade creditors	7,786	566
	Accruals and deferred income	86,243	10,450
		───────	───────
		94,029	11,016
		═══════	═══════

15

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

21. Deferred income

	2020	2019
	£	£
Amount deferred in year	83,243	–
	═══════	════

Deferred income relates to Grant income received that has been deferred in accordance with the grant terms and conditions.

22. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2020	2019
	£	£
Recognised in income from donations and legacies:
Government grants income	10,000 ═══════	– ════

23. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
					At
		At			31 December
	1	January 2020	Income	Expenditure	2020
		£	£	£	£
General funds		551,091	45,429	(99,479)	497,041
		═════════	═══════	═══════	═════════
		At		At	31 December
	1	January 2019	Income	Expenditure	2019
		£	£	£	£
General funds		562,515	163,521	(174,945)	551,091
		═════════	═════════	═════════	═════════

16

Middleton Railway Trust Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

23. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
				At
	At			31 December
	1 January 2020	Income	Expenditure	2020
	£	£	£	£
Heritage Lottery Fund	597,259	-	(21,173)	576,086
Heritage Lottery Fund Emergency Fund	-	27,614	(27,614)	-
Locomotive Maintenance	2,501	–	–	2,501
Defibrillator fund	370	–	–	370
Disabled Children’s Access Fund	1,224	–	–	1,224
No 6 Boiler fund	–	–	–	–
Slough & Windsor	–	–	–	–
Solar Panels	–	–	–	–
	─────────	───────	───────	─────────
	601,354	27,614	(48,787)	580,181
	═════════	═══════	═══════	═════════
	At		At	31 December
	1 January 2019	Income	Expenditure	2019
	£	£	£	£
Heritage Lottery Fund	618,432	–	(21,173)	597,259
Locomotive Maintenance	2,501	–	–	2,501
Defibrillator fund	370	–	–	370
Disabled Children’s Access Fund	1,224	–	–	1,224
No 6 Boiler fund	4,054	–	(4,054)	–
Slough & Windsor	500	–	(500)	–
Solar Panels	–	10,000	(10,000)	–
	─────────	───────	───────	─────────
	627,081	10,000	(35,727)	601,354
	═════════	═══════	═══════	═════════
Analysis of net assets between funds
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2020
		£	£	£
Tangible fixed assets		303,271	575,533	878,804
Current assets		287,799	4,648	292,447
Creditors less than 1 year		(94,029)	–	(94,029)
		─────────	─────────	───────────
Net assets		497,041	580,181	1,077,222
		═════════	═════════	═══════════
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2019
		£	£	£
Tangible fixed assets		304,581	597,259	901,840
Current assets		257,526	4,095	261,621
Creditors less than 1 year		(11,016)	–	(11,016)
		─────────	─────────	───────────
Net assets		551,091	601,354	1,152,445
		═════════	═════════	═══════════

24. Analysis of net assets between funds

17