**Charity Registration No. 259626**
**Company Registration No. 00956100 (England and Wales)**
# **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|S C Allsop||
|---|---|---|
||G C Bowler||
||I Dixon||
||F P Galvin||
||D J Guest||
||J R Hillier||
||G Howard||
||P W Skellon||
||S J Peach||
||H J Peach||
||P W Smith||
||K Whitmore||
||J M Winderbank||
||H Ashby|(Appointed 18 November 2020)|
|**Charity number**|259626||
|**Company number**|00956100||
|**Registered office**|The Shippen||
||8 The Old Hall Court Yard||
||Heath||
||Wakefield||
||West Yorkshire||
||WF1 5ST||
|**Independent examiner**|Craig Stratford FCA||
||c/o Simpson Wood Limited||
||Bank Chambers||
||Market Street||
||Huddersfield||
||HD1 2EW||
|**Bankers**|The Royal Bank of Scotland Plc||
||Chatham Customer Service Centre||
||Waterside Court||
||Chatham Maritime||
||Chatham||
||ME4 4RT||
|**Solicitors**|Molesworth Bright-Clegg||
||Octagon House||
||25-27 Yorkshire Street||
||Rochdale||
||OL16 1RH||
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 4|
|Statement of trustees responsibilities|5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8|
|Notes to the financial statements|9 - 17|
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees present their report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
## **Objectives and activities**
## **Objective and Policy**
The objective of the Society is to encourage and promote public interest in the preservation of steam and other railway locomotives and rolling stock together with railway machinery and equipment.
The policy is:-
a) to acquire and restore suitable railway locomotives and rolling stock, etc and display them to the public either as static or preferably working exhibits and
b) to operate a museum and educational facility which displays and conserves the collection of smaller artefacts and explains to future generations the important part the railway industry has played in the industrial, social and economic development of this country.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
2020 has been the most difficult year for the Society since the move from Dinting in 1990. With Covid 19 restrictions the museum has been closed for most of the year. Inevitably visitor numbers have been low compared to previous years which saw a year on year increase in visitor numbers. In total there were 3,058 visitors to our museum in 2020. All our employees were furloughed from mid-March until mid-August when restrictions were relaxed and our Learning Manager and most of our Duty officers returned to work. Further restrictions were imposed in the Autumn when our DOs were again put on furlough with the exception of our Learning Manager who remained in full time employment with a full work programme. We were extremely grateful to receive financial support from Bradford City Council, Keighley Town Council and the National Lottery Heritage Fund. Funding and support was also welcome from Museum Development Yorkshire and Rebuilding Heritage. Before we had to cease operations we were able to work with our partner KWVR to run Bahamas on the mainline on a very successful trip on the Settle and Carlisle Railway in February as well as participating in the extremely successful February Half Term Dinosaur event and the March Gala both organised by KWVR. We were also delighted to hire Bahamas to the Mid Hants Railway for their Autumn Gala in October which was by far the outstanding heritage railway event of the year as one of the very few events which were organised. The atmosphere at the fully Covid-safe Gala was magnificent with all who attended saying how pleased they were to see us there. Many new friendships were made at the event in addition to the welcome financial revenue from attending the event. The Mid Hants railway is in fact the furthest south that Bahamas has ever travelled since first entering service.
In a year when members have not been able to visit our museum our social media offer has been more important than ever to keep in touch with our membership. Our Journal has continued to be produced and our website and Facebook page has been regularly updated to keep members informed of our activity. In addition a new Youtube Channel has been introduced with much nostalgic content of our days at Dinting as well as at Keighley and excerpts on Bahamas and our collection.
We also held our first ever virtual AGM in October by using the Zoom meeting system which was most successful with a number of members joining from far and wide who would not normally be able to join us.
Following an extension to the scheme until March 2022 our museum continues to operate within the Museum Accreditation status given by Arts Council England. This recognises our continued high standard in museum activities. During the year our museum mentor Helen Ashby joined our Board of Directors and her expertise has strengthened our governance in many other areas in addition to the Museum.
- 1 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Financial review**
## **Reserves**
The Balance Sheet shows the restricted and unrestricted funds of the Society at the year - end and the prior year . Note 1 4 shows the movements on restricted funds. At the year - end, unrestricted funds amounted to £ 189,641 , but after taking account of amounts invested in fixed assets less fixed assets relating to restricted funds, the free reserves are £ 147,888 , representing approximately 47 months' expenditure which the trustees feel is adequate.
## **Financial Risk Strategy**
The Committee of Management regularly reviews the main areas of financial risk. These may be summarised as follows: -
a) Insufficient funds to continue operations and complete projects.
b) Unauthorised transactions.
c) Failure to safeguard our assets.
d) Failure to adhere to legislation or restrictions in whatever field.
e) Liabilities are not identified and provision not made for them.
These risks are mitigated as follows:
The Committee meets regularly to oversee the Society’s activities. Major expenditure has to be approved by the Committee and committee members (directors) have specific roles and duties. The Committee ensures that current projects have sufficient funds available on a regular basis from a variety of sources e.g. subscriptions, donations, Gift Aid, shop and museum income and grants. At present the company has no borrowings. Our assets are housed securely at Ingrow other than Bahamas which is securely stored at Haworth. Items stored outside are secured and protected from the weather. A modern security system is in place and various insurance policies including public liability are in force. The Committee keeps up to date with legislation and regulations by contact with specialists in the preservation sphere, membership of various associations and by taking advice from recognised experts.
- 2 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Plans for the future**
As last year I write this report whilst serious restrictions are still in place on our lives due to the coronavirus pandemic. However with the vaccine programme well under way it is hoped that some normality to our activities will return. We have an exciting programme of potential mainline work for 45596 Bahamas in the Summer and Autumn. 2021 will also see the 60th anniversary of the fitting of the double chimney to the locomotive which is recognised as the last piece of engineering undertaken on a steam locomotive to improve performance and as such brings down the curtain on the development of the steam locomotive since the early nineteen hundreds. Work continues on the Coal Tank locomotive with our workshop team who have continued to overhaul the locomotive under a safe Covid health and safety regime to ensure that the locomotive is ready to play its part in the celebrations in 2022 to mark the merger of the Lancashire and Yorkshire and London and North Western Railways as the only operational LNWR Locomotive. Once comp l eted our attention will be directed towards the overhaul of our industrial locomotive Nunlow in conjunction with our friends at the Hope Cement Works in Derbyshire.
Work has also been carried out on our diesel locomotive "James" which is now resplendent in a new green livery. Restoration of our brake van is also being carried out. We have continued to work closely with our friends and colleagues at the Keighley and Worth Valley Railway and the Vintage Carriages Trust to provide a first class visitor attraction at Ingrow. As part of our Rail Story development we have plans to extend our museum building to improve our facilities for our volunteers, staff and visitors alike.
Also from late Spring we hope to be able to organise some events at Ingrow using our Learning Coach for the local community and schools. The one activity involving a local sc h ool this year was with Saltaire Primary Schoo l where Matt Arnold went to the school to give a presentation and activity which was very well received. We very much see ourselves as a local community resource as well as future-proofing and improving our volunteer base to ensure that our Society meets the needs of the next generation of volunteers.
We are virtually the only voluntary society in the UK which owns an operational mainline certificated locomotive, opens a museum 364 days a year and operates a workshop. We also operate sales both at Ingrow and at outside events. Our members and volunteers are one of our most valuable assets without whose help and support the Society could not exist in its present form and liquidity.
## **Structure, governance and management**
The Bahamas Locomotive Society Limited is a company limited by guarantee , first registered in England as no. 956100 on 12 June 1969 and is governed by its Memorandum and Articles of Association. The company has also been registered as a Charity for Educational Purposes as no. 259626 since 10 August 1970.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
S C Allsop
G C Bowler
I Dixon
F P Galvin D J Guest J R Hillier
G Howard P W Skellon S J Peach H J Peach P W Smith K Whitmore J M Winderbank H Ashby
(Appointed 18 November 2020)
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## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
A Committee of Management, currently consisting of fourteen directors and trustees, holds monthly meetings to manage the activities of the Society. Details of the directors/trustees are included in the company information given on the first page of the financial statements. During the year we were pleased to welcome Helen Ashby as a director.
A wholly owned subsidiary, Bahamas Loco Trading Limited, was formed in 1991 with a working capital of £5,000. This company is responsible for all trading activities such as locomotive hire, employment contracts, books and souvenir sales. Profits are transferred to the Society in return for free use of the Society's locomotives and other assets.
The Society is an organisation based on voluntary involvement. Fortunately, the Society is well supported by its friends and members and relies on volunteer labour wherever possible. Thanks again are due to the dedicated team who have operated the museum and shop and cared for the Society’s assets. A small number of paid staff are employed in customer-facing and museum roles. Otherwise, neither directors nor members receive any remuneration.
Liquid assets are held in current and deposit accounts with various high street banks and the Charities Official Investment Fund .
The Society's base is known as "Ingrow Loco - Museum and Workshop" on the Keighley and Worth Valley Railway (KWVR) in West Yorkshire where an ex - Midland Railway goods warehouse has been converted into a workshop and museum with financial assistance from the NLHF. The Ingrow site is continuing to be developed as "Rail Story" and the Society has re-branded and developed its museum there to provide the "Engine Shed" component of the attraction. We are looking at further developments to improve the visitor experience at the Ingrow site including a possible extension to the museum building.
## **Accountants**
Accountants Simpson Wood will be considered for re-appointment at the forthcoming annual general meeting.
The trustees r eport was approved by the Board of Trustees.
## **K Whitmore**
Trustee Dated: 17 March 2021
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## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **STATEMENT OF TRUSTEES RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees, who are also the directors of The Bahamas Locomotive Society Limited for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
I report on the financial statements of the charity for the year ended 31 December 2020, which are set out on pages 7 to 17.
## **Respective responsibilities of trustees and examiner**
The trustees, who are also the directors of The Bahamas Locomotive Society Limited for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 ( the 2011 Act ) and that an independent examination is needed. The charity's gross income exceeded £250,000 in 2017 and I am qualified to undertake the examination being a qualified member of The Institute of Chartered Accountants in England and Wales.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility:
- (i) to examine the accounts under section 145 of the 2011 Act;
- (ii) to follow the procedures laid down in the G eneral D irections given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- (iii) to state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (a) which gives me reasonable cause to believe that in any material respect the requirements:
- (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and
- (ii) to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
- have not been met or
- (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Craig Stratford FCA
c/o Simpson Wood Limited Chartered Accountants Bank Chambers Market Street Huddersfield HD1 2EW
Dated: 17 March 2021
- 6 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Voluntary activities
**3**
14,338
13,070
Charitable activities
**4**
45,928
830
Other trading activities
**5**
15,984
-
Investments
**6**
142
708
**Total income**
76,392
14,608
**Expenditure on:**
Raising funds
**7**
184
-
Charitable activities
**8**
37,354
7,400
**Total resources**
**expended**
37,538
7,400
**Net incoming/**
**(outgoing) resources**
**before transfers**
38,854
7,208
Gross transfers
between funds
(15,594)
15,594
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
23,260
22,802
Fund balances at 1
January 2020
166,381
333,505
**Fund balances at 31**
**December 2020**
189,641
356,307|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
**£**
**£**
27,408
17,892
13,788
46,758
-
46,527
15,984
38,514
-
850
305
1,294
91,000
56,711
61,609
184
507
-
44,754
41,059
96,655
44,938
41,566
96,655
46,062
15,145
(35,046)
-
-
-
46,062
15,145
(35,046)
499,886
151,236
368,551
545,948
166,381
333,505|Total
2019
**£**
31,680
46,527
38,514
1,599
118,320
507
137,714
138,221
(19,901)
-
(19,901)
519,787
499,886|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 7 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**10**
Investments
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds|**2020**
**£**
50,003
377,767
427,770
(8,379)|**£**
121,557
5,000
126,557
419,391
545,948
356,307
189,641
545,948|**2019**
**£**
32,969
340,031
373,000
(8,262)|**£**
130,148
5,000
135,148
364,738
499,886
333,505
166,381
499,886|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.
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.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 17 March 2021
K Whitmore **Trustee**
**Company Registration No. 00956100**
- 8 -
**THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
The Bahamas Locomotive Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Shippen, 8 The Old Hall Court Yard, Heath, Wakefield, West Yorkshire, WF1 5ST.
## **1.1 Accounting convention**
The accounts have been prepared under the historical cost convention , with the exception of investments which are included at market value.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Prior to the approval of these accounts there has been a global pandemic from Covid-19.This has resulted in lockdown measures being introduced which will have economic repercussions for both the UK and globally. There are still many uncertainties as to the longer term implications, but the directors have assessed the immediate impact and do not believe there will be a material effect on the company and therefore continue to adopt the going concern basis.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of receipt .
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
- 9 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Building improvements Straight line over 25 years Plant and machinery Straight line over 20 years Fixtures and equipment 10% on reducing balance Computers 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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**THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank overdrafts .
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.11 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **1.12 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 the 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.
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**THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.13 Grants**
Capital grants received are treated as deferred income and as such are released to the profit and loss account over the same period of asset depreciation. In accordance with the Statement of Recommended Practice, all heritage grants are treated as income when receivable.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Voluntary activities**
|**Unrestricted Restricted**
**funds**
**funds**
**£**
**£**
Donations and gifts
9,871
13,070
Membership fees
4,467
-
14,338
13,070
**For the year ended 31 December 2019**
17,892
13,788|**Total**
**2020**
**£**
22,941
4,467
27,408|**Total**
**2019**
**£**
26,786
4,894
31,680
31,680|
|---|---|---|
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## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **4 Charitable activities**
|Grants receivable for core activities
Other grants income
Analysis by fund
Unrestricted funds
Restricted funds
**For the year ended 31 December 2019**
Restricted funds|**Grants**
**£**
830
45,928
46,758
45,928
830
46,758
46,527|**2019**
**£**
46,527
-
46,527
-
46,527
46,527
46,527|
|---|---|---|
## **5 Other trading activities**
|**Unrestricted**
**funds**
**£**
Fundraising events
(466)
Admissions
4,670
Other income
11,780
15,984
**Investments**
**Unrestricted**
**Restricted**
**Total**Unrestricted
Restricted
**funds**
**funds**
funds
funds
**2020**
**2020**
**2020**
2019
2019
**£**
**£**
**£**
£
£
Interest receivable
142
708
850
305
1,294|**Total**
**2019**
**£**
2,253
22,375
13,886
38,514
Total
2019
£
1,599|
|---|---|
## **6 Investments**
- 13 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **7 Raising funds**
|**Unrestricted**
**funds**
**£**
Fundraising and publicity
General fundraising expenditure
184
184|**Total**
**2019**
**£**
507
507|
|---|---|
## **8 Charitable activities**
|**Charitable**
**activities**
**Governance**
**costs**
**£**
**£**
Depreciation and impairment
11,562
-
Rent and rates
21
-
Insurance
13,787
-
Light, heat and power
1,835
-
Repairs to buildings and equipment
4,277
-
Locomotive and rolling stock maintenance
4,463
-
Postage and stationery
3,335
-
Telephone
901
-
Sundries
2,139
-
Bank charges
354
-
Legal and professional fees
799
-
Travel and subsistence
6
-
Outreach activities
-
-
43,479
-
Governance costs
-
1,275
43,479
1,275|**Total**
**2020**
**£**
11,562
21
13,787
1,835
4,277
4,463
3,335
901
2,139
354
799
6
-
43,479
1,275
44,754|**Total**
**2019**
**£**
11,282
222
11,193
2,398
6,342
82,735
4,209
854
1,029
359
350
202
15,264
136,439
1,275
137,714|
|---|---|---|
The governance costs relate to the accountancy fees for both this year and the previous year.
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year and, aside from travel expenses, there were no trustees' expenses paid for the year (2019 - nil).
- 14 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**10**|**Tangible fixed assets**||||||
|---|---|---|---|---|---|---|
|||**Building**|**Plant and**|
**Fixtures and**|**Computers**|**Total**|
|||**improvements**|**machinery**|
**equipment**|||
|||**£**|**£**|
**£**|**£**|**£**|
||**Cost**||||||
||At 1 January 2020|218,262|92,005|
17,916|378|328,561|
||Additions|-|-|
420|2,550|2,970|
||At 31 December 2020|218,262|92,005|
18,336|2,928|331,531|
||**Depreciation and impairment**||||||
||At 1 January 2020|176,406|7,600|
14,311|95|198,412|
||Depreciation charged in the year|5,828|4,600|
402|732|11,562|
||At 31 December 2020|182,234|12,200|
14,713|827|209,974|
||**Carrying amount**||||||
||At 31 December 2020|36,028|79,805|
3,623|2,101|121,557|
||At 31 December 2019|41,856|84,405|
3,604|283|130,148|
|**11**|**Fixed asset investments**||||||
|||||||**Other**|
|||||||**investments**|
||**Cost or valuation**||||||
||At 1 January 2020 & 31 December|2020||||5,000|
||**Carrying amount**||||||
||At 31 December 2020|||||5,000|
||At 31 December 2019|||||5,000|
||||||**2020**|**2019**|
||Other investments comprise:|||**Notes**|**£**|**£**|
||Investments in subsidiaries|||**17**|5,000|5,000|
- 15 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **12 Debtors**
|**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
VAT recoverable
Prepayments and accrued income
**Creditors: amounts falling due within one year**
Deferred government grants
Other creditors
Accruals and deferred income|**2020**
**£**
-
24,451
1,277
3,241
21,034
50,003
**2020**
**£**
833
975
6,571
8,379|**2019**
**£**
2,759
18,166
251
1,704
10,089
32,969
**2019**
**£**
1,663
1,086
5,513
8,262|
|---|---|---|
## **13 Creditors: amounts falling due within one year**
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 January 2020**
**£**
The Bahamas Appeal
311,546
National Lottery Heritage Fund
Grant:Museum
21,959
The Southwick Funds
-
333,505|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
13,778
(4,600)
830
(2,800)
-
-
14,608
(7,400)|**Transfers**
**Balance at**
**31 December**
**2020**
**£**
**£**
-
320,724
-
19,989
15,594
15,594
15,594
356,307|
|---|---|---|
The Bahamas Appeal is a specific fund for the restoration of the locomotive Bahamas and movements in funds are written off as incurred.
The National Lottery Heritage Fund Grant:Museum is the balance of the proceeds from the National Lottery Heritage Fund grant. The grant was provided to assist in the building of the society's museum. The fund is being written off in line with the life expectancy of the museum.
"The Southwick Fund" represents contributions by members and others towards the restoration of Robert Stephenson & Hawthorn crane tank no. 7069 "Southwick".
- 16 -
## **THE BAHAMAS LOCOMOTIVE SOCIETY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **15 Analysis of net assets between funds**
|**Unrestricted**
**Restricted**
**2020**
**2020**
**£**
**£**
Fund balances at 31 December 2020 are
represented by:
Tangible assets
41,753
79,804
Investments
5,000
-
Current assets/(liabilities)
111,961
307,429
158,714
387,233|**Total**
**2020**
**£**
121,557
5,000
419,391
545,948|Total
2019
£
130,148
5,000
364,738
499,886|
|---|---|---|
## **16 Related party transactions**
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
Management charges of £10,091 (2019 - £13,565) were received from the subsidiary Bahamas Loco Trading Ltd. At the balance sheet date the amount due from the company was £24,451 (2019 - £18,166).
## **17 Subsidiaries**
These financial statements are separate charity financial statements for The Bahamas Locomotive Society Limited.
Details of the charity's subsidiaries at 31 December 2020 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Bahamas Loco Trading Ltd. England &||To promote the trading|Ordinary|100.00|
||Wales|activities of the Society.|||
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Bahamas Loco Trading Ltd.|-|8,232|
- 17 -