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2020-12-31-accounts

THE WEY & ARUN CANAL TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

COMPANY NO: 01094232

REGISTERED CHARITY NUMBER: 265331

THE WEY & ARUN CANAL TRUST LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

Page
Reference and Administrative Details 1
Trustees’ Annual Report 2 to 7
Independent Examiner's Report 8
Consolidated Statement of Financial Activities 9
Consolidated and Charity Balance Sheets 10
Consolidated Statement of Cash Flows 11
Notes to the Financial Statements 12 to 21

THE WEY & ARUN CANAL TRUST LIMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 2020

Registered Company Limited by Guarantee

Registration Number 01094232 (England and Wales)

Registered Charity number 265331

Registered office

The Granary Flitchfold Farm Vicarage Hill Loxwood Billingshurst West Sussex RH14 0RH

Trustees

Tony Coles Margaret Darvill Giles Eyre (appointed 25 May 2020) Tony Ford Dennis Gillen Alan Johnson Julian Morgan Bill Nicholson (appointed 25 May 2020) Philip Oliver (resigned 25 April 2020) John Reynolds Sally Schupke John Talbot Tony Tyrrell (deceased 18 July 2020)

Company Secretary

Jeremy Watts (resigned 7 July 2020) Giles Eyre (appointed 7 July 2020)

Independent Examiner

John Speed FCA FCIE JS2 Limited One Crown Square Woking, Surrey GU21 6HR

Solicitors

Lynn Murray & Co Solicitors Denning House 84 High Street Cranleigh Surrey GU6 8AH

Bankers

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling ME19 4JQ

1

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

The Wey & Arun Canal Trust Limited (“the Trust”) is a charity. The trustees are also directors of the Trust for the purposes of the Companies Act and present their report together with the financial statements of the Trust for the year ended 31st December 2020. They are also prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's governing document, the Charities Act 2011 and 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).

OBJECTIVES AND ACTIVITIES

Objects and Activities

The Trust’s objects and principal activities have continued to be the restoration, renovation and operation of the Wey & Arun Canal. The aim is to restore the whole 23-mile length of the canal to through navigation.

Aims, Objectives, Strategies and Activities for the Year

The Trust’s strategy is to invest in multiple major restoration activities at the same time. This approach clearly presents challenges in terms of funding and resource allocation, but, if successful, will accelerate the achievement of the Trust’s objectives. Currently the sections that the Trust has chosen as priorities are (from north to south): (1) the Shalford/Bramley section, including reconnecting the canal to the national waterways network, (2) the Alfold/Dunsfold section, (3) the Ifold/Loxwood section and (4) the Arun Valley section near Wisborough Green.

Public Benefit

When planning activities for the year, the trustees have considered the Charity Commission guidance on public benefit. The Trust’s activities benefit the public in ways including the following:

  1. The Trust’s vision is to create a green corridor for recreational use and enjoyment by all, but most importantly by towpath users. The towpath beside the Loxwood operational section is accessible to the public at all times and is a public bridleway for part of its length. The Trust maintains the surface of the towpath to a standard which balances the wishes of horse-riders, walkers and cyclists.

  2. Over a wider area, the Trust has promoted the Wey-South Path, a long-distance footpath recognised by the Ordnance Survey (OS) and following the route of the canal as closely as possible.

  3. The Trust contributes to the local economy through the activities of its trading company and through its canal restoration activities. In both areas the Trust has created employment and spends significant sums with local businesses. The Loxwood section of canal is a tourist destination of developing importance, where the public can experience and learn about travel by canal.

  4. The Trust is safeguarding the canal as a heritage asset with substantial educational value. The Trust preserves and consolidates surviving structures wherever this is possible; if the structures have deteriorated too much then the Trust plans sensitive rebuilding.

  5. The Trust’s canal restoration activities promote biodiversity. While restoration work is in progress there can be temporary detriment to wildlife, but the restored habitat is always improved (and will sustain a broader range of wildlife) compared to what existed before.

Contribution of Volunteers

The Trust is volunteer-led and largely dependent on volunteers for its day-to-day activities. Volunteer hours contributed during 2020 are estimated to be equivalent to 12 full-time staff. Work by volunteers not only benefits the Trust but also enriches the lives of the volunteers themselves. The Trust envisages that volunteers will continue to play a central role but nevertheless expects that, as its activities develop, more paid staff will be needed in order to ensure consistent administration and the continuity of core activities.

2

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

Charitable Activities

The Trust’s principal activities during 2020 on each of the sections identified as priorities were as follows:

  1. In the Shalford/Bramley section, following public consultation, the planning application for Phase 1 of the Bramley Link (Gun’s Mouth Island to Tannery Lane) has been submitted and work continues on detailed planning of the new canal route. Work was commenced on construction of the new Hunt Nature Park Information Point. South of Bramley, on the Birtley Reach, work has been completed on the abutments for the new bridge which will facilitate the new circular walk using a section of new canal towpath and the existing Downs Link path and the bridge deck was constructed off site. It is planned to complete the bridge and open the circular walk during 2021. Planning permission for a second new lifting bridge to replace the causeway carrying a bridleway and utilities was obtained and further preparatory planning work proceeded with.

  2. In the Alfold/Dunsfold section, planning permission was granted, subject to conditions, for the first phase of the new canal crossing of the Alfold-Dunsfold road in the Tickner’s Heath area, where the road currently blocks the canal route. The construction compound was completed and some preliminary work commenced. Dredging work on the summit pound was stopped by Covid restrictions and resumption was then delayed pending arrangements for disposal of silt. Further work was carried out at the Thriscutt Slipway to prepare it for the planned Trailboat Rally, which had to be postponed because of the Covid-19 pandemic.

  3. In the Ifold/Loxwood section, Platipus ground anchors were installed to stabilise the lock walls at Drungewick Lock.

  4. In the Arun Valley near Wisborough Green, the new canal bridge at Lee Place (Harsfold) was constructed replacing the causeway blocking the canal. Further south remedial work was carried out to Pallingham Bridge including reinstatement of the parapets and towpath under the bridge.

Other important activities included:

  1. Provision of supplementary information for the planning application to Waverley Borough Council for a new section of canal at Rushett Farm, between Bramley and Cranleigh.

  2. Submission of a planning application to replace the existing bridge on Elmbridge Road near Cranleigh which will provide navigable height. The Trust acquired a section of canal bed south of Elmbridge Road.

  3. Planning to host the Inland Waterways Association (IWA) National Trailboat Festival on the Summit Level section near Dunsfold and Alfold, made possible by the creation of the Thriscutt Slipway. The festival was delayed by the Covid-19 pandemic and is now expected to take place in 2022.

  4. The operation of the Loxwood Canal Centre as a central point for welcoming visitors and providing information about the canal.

  5. Maintenance and improvement activities on both operational and non-operational sections of the canal.

  6. Negotiations with landowners to secure land transfers, leases or permissions for sections of the canal route.

3

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

Fundraising

The current priority projects have an estimated total cost of at least £3 million, meaning that fundraising on an increased scale is clearly required. The Milestone Club, a scheme to encourage members to contribute a monthly sum in addition to their subscriptions, is an extremely useful source of income.

During the year some of the most important sources of income were:

  1. Grants from Charitable Trusts and local authorities;

  2. Legacies from deceased members and supporters;

  3. Membership subscriptions and donations from members;

  4. Gift Aid;

  5. Recycling, mainly of newspaper;

  6. The Christmas Raffle and the Numbers Game (a monthly draw).

Trading company (W&A Enterprises Ltd)

The Trust holds 100% of issued share capital (£12) in its trading subsidiary, W&A Enterprises Ltd. The principal activities of the trading company are to operate boats for private and public trips and the sale of merchandise. The whole of the company’s taxable profits are passed to the Trust. The company experienced extremely difficult trading conditions in 2020 owing to Covid-19 restrictions. No boat trips were possible for more than half the year; in periods when restrictions were relaxed capacity was severely reduced. The company decided to make the three part-time staff responsible for boat trip administration redundant and to close the Loxwood office (The Granary) permanently. (The Granary is still in use as the registered address for the Trust and its trading company and is being used for storage.) The Trust is however committed to supporting the company through this difficult period.

FINANCIAL REVIEW

Financial position

In summary, the Trust spent 2020 progressing restoration projects and planning future work. During the year the Trust’s expenditure (£788,877) exceeded income (£520,214).

The Trust relies very largely on the generosity of its members and supporters. Sponsorship and gifts in kind amounted to approximately £24,000 in 2020. The Trust currently pays no rent for its offices in Shalford or The Granary in Loxwood (currently in use for storage) and a sponsor provided a Land Rover for the Trust’s use until October 2020.

Reserves Policy

The Trust’s policy is to assign funds to specific projects as soon as they are available, rather than building up substantial reserves. Membership subscriptions are only sufficient to cover core activities, such as staff salaries. Hence the Trust depends on continuous fundraising to support all its major restoration and maintenance activities.

Funds Available

The total funds available to the Trust at the end of 2020 (net assets) are £1,333,862, which includes £426,897 restricted to specific projects. In accordance with the Trust’s policy of not holding substantial reserves, a further £501,383 has been assigned by the trustees to current projects. It is the Trust’s policy only to assign funds to projects that are in the implementation or planning phases, not for long-term contingencies. As a guideline, this means that assigned funds will normally be spent within 3-5 years; the Trust regularly reviews fund balances and takes action to close funds where the planned work is finished or changed circumstances mean that planned work will not go ahead.

The project areas and the total funds assigned to current projects (including restricted funds) are: The project areas and the total funds assigned to current projects (including restricted funds) are:
North (Shalford/Bramley) £318,156
South (Ifold/Loxwood) £82,169
Summit (Alfold/Dunsfold) £391,486
Others £49,185
Total £840,996

4

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

The trustees aim for the Trust to hold sufficient unrestricted funds not invested in tangible fixed assets (‘the free reserves’) to cover between three and six months’ running costs. This amounts to approximately £105,000£210,000. Funds invested in fixed assets at the end of 2020 amounted to £309,662, leaving free reserves of £183,204 which are considered an appropriate level.

Investments and Cash Deposits

In order to minimise any risks, funds available are deposited in a number of financial institutions to maximise cover under the FSCS guarantee scheme. In addition £80,000 has been invested in managed portfolio services for charities.

Contract commitments

The Trust has contracts with Peninsula Business Services to provide support on Human Resources and Health & Safety matters.

FUTURE PLANS

Whilst the Covid-19 pandemic has impacted on the work of the Trust in reducing income and reducing the amount of work carried out by volunteers, and continued to impact in this manner into 2021, the Trust is confident that it holds sufficient funds to continue with its current plans in the event of a fall in income in the short to medium term. The Trust’s plans for each of the areas identified as priorities are as follows:

  1. In the Shalford/Bramley area:

  2. a. To make amendments to the planning application for a new canal route between the River Wey and Gosden to address objections which have been registered.

  3. b. To complete construction of a new Information Point in the Hunt Nature Park.

  4. c. To open a new canalside walk in the Birtley area for the enjoyment of the public and continue work on reinstating bridges in place of causeways that currently block the canal.

  5. d. Planning for restoration of the canal in the Fanesbridge area, including reinstatement of a lock and a bridleway bridge,

2. In the Alfold/Dunsfold area:

3. In the Ifold/Loxwood area:

4. In the Arun Valley area:

5

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Trust is a company limited by guarantee and was formed on 5th February 1973. It is governed by its Memorandum and Articles of Association.

Trustees

Constitutionally, a third of the trustees stand down each year and normally offer themselves for re-election at the Annual General Meeting held in late April each year. New trustees are nominated by the members. Where there are more nominations than vacancies, an election by members present is held at the AGM. No other person, or body external to the Trust, is entitled to appoint any of the trustees. The trustees, at their next meeting after the AGM, then elect the post-holders such as the Chairman, Vice-Chairman and Secretary.

The trustees who served during the year are listed on page 1.

All trustees attend regular board meetings. At the first meeting after the AGM, each trustee is asked to fill one or more of the posts needed by the Trust. Newly appointed trustees are provided with an informal induction to the Trust and mentoring by established trustees.

Organisational Structure

The trustees normally meet once per month. There were 8 meetings of the board (Council of Management) during 2020. The members of the board during that year and their attendance records were:

Sally Schupke (Chairman) 8 Tony Coles 7
Margaret Darvill 8 Tony Ford 8
Dennis Gillen 8 Alan Johnson 8
Julian Morgan 8 John Reynolds 8
John Talbot 7 Tony Tyrrell (Hon. Secretary) 1
Giles Eyre 5 Bill Nicholson 5

At the end of 2020, the Trust had two full-time and five part-time employees. These comprised:

The day-to-day work of the Trust is carried out largely by volunteers. Key volunteer roles include project managers, working party leaders, publicity, publications, engineering and other specialist technical consultants, finance, membership and website administration and organisation of major fundraising events.

Related Parties

The Trust is affiliated to The Inland Waterways Association and to two local wildlife trus ts, but is independent of all these bodies.

The Trust holds 100% of issued share capital (£12) in its trading subsidiary, W&A Enterprises Ltd, and approves the appointment of directors to that body.

6

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

Major Risks

The major risks to which the Trust is exposed, as identified by the trustees, are reviewed annually. The containment of identified risks is a continuing task of the trustees. Some of the major risks identified, and the actions to mitigate them, are as follows:

Risk Mitigation

Perceived negligence by the Trust, its
volunteers or agents		 Public Liability Insurance, close liaison with statutory bodies,
improved training for volunteers.
Failure of income streams Careful financial management and a policy of not committing
to major work until funds are available. Overheads and
recurring expenses are minimised.
Decision by a landowner not to agree or
extend a lease		 Other than for good reasons, Trust policy is not normally to
commit to major expenditure without ownership or a long
lease being in place.
Failure of canal structures Other than where the Trust has agreed to accept
responsibility under a specific agreement with a local
authority, highway bridges are the responsibility of the local
authorities. Regular inspection of smaller structures.
Failure of water supply to operational section Careful water management and monitoring.
Accidents to visitors, volunteers or general public Risk assessments for all major activities. Health & Safety
Policy in place for working party volunteers. Restoration
Group reviews all incidents and takes appropriate action.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of The Wey & Arun Canal Trust Limited for the purposes of company law) are responsible for preparing the trustees’ Annual Report and the group financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the income and expenditure of the company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ON BEHALF OF THE BOARD:

............................................. Sally Schupke Chairman and Director

Date: 20 July 2021

7

THE WEY & ARUN CANAL TRUST LIMITED INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

I report to the charity trustees on my examination of the accounts of the group and parent company for the year ended 31 December 2020 as set out on pages 9 to 21.

Responsibilities and basis of report

As the charity’s trustees of the parent company (who are also the directors of the parent company for the purposes of company law), you are responsible for the preparation of the group accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of the group and parent Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your group 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.

This report is made solely to the parent charity's trustees, as a body. My work has been undertaken so that I might state to the parent charity's trustees those matters which I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to any party other than the parent charity and charity's trustees as a body, for my examination, for this report, or for the statement I have given below.

Independent examiner's statement

The group’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

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.

JOHN SPEED FCA FCIE

JS2 Limited One Crown Square Woking Surrey GU21 6HR

Date:

8

THE WEY & ARUN CANAL TRUST LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) FOR THE YEAR ENDED 31ST DECEMBER 2020

Unrestricted
Funds
2020
Note
£
Income
4
Subscriptions
32,205
Donations
265,081
Grants
127,434
Other trading activities
Fund-raising
5
12,336
Trading subsidiary income
6
26,333
Other income
5
2,322
Investment income
Bank interest
16,045
Total Income
481,756
Expenditure
Expenditure on raising funds
Costs of raising voluntary income
7
38,312
Trading subsidiary costs
6
54,183
Charitable activities
8
461,741
Total expenditure
554,236
Net (expenditure) for the year
(72,480)
Transfers between funds
(91)
(72,571)
Gains on investment assets
Unrealised investment gains
13
1,473
Net movement in funds
(71,098)
Reconciliation of funds
Total funds brought forward
978,063
Total funds carried forward
906,965
All amounts derive from continuing activities.
Donations, legacies
and similar income		 Restricted
Funds
2020
£
-
22,176
16,282
-
-
-
-
38,458
2,156
-
232,485
234,641
(196,183)
91
(196,092)
-
(196,092)
622,989
426,897		 Total
Funds
2020
£
32,205
287,257
143,716
12,336
26,333
2,322
16,045		 Total
Funds
2019
£
29,299
156,328
104,000
22,283
93,804
814
17,570
520,214 424,098
40,468
54,183
694,226		 33,791
51,525
673,391
788,877 758,707
(268,663)
-		 (334,609)
-
(268,663)
1,473		 (334,609)
2,074
(267,190) (332,535)
1,601,052 1,933,587
1,333,862 1,601,052

All gains and losses recognised in the period are included in the statement of financial activities.

The annexed Notes form part of these financial statements

9

THE WEY & ARUN CANAL TRUST LIMITED (a company registered by guarantee 01094232) CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31ST DECEMBER 2020

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stocks
Debtors
12
Investments
13
Short-term deposits
Cash at bank and in hand
Creditors: Amounts falling
due within one year
14
Net current assets
Total assets less current liabilities
The funds of the charity:
Restricted income funds
15
Unrestricted income funds:
15
Designated funds
Other charitable funds
Total unrestricted funds
Total charity funds		 Consolidated
2020
£
309,662
-
309,662
5,770
97,294
79,699
252,733
627,160
1,062,656
(38,456)
1,024,200
1,333,862
426,897
723,761
183,204
906,965
1,333,862		 Consolidated
2019
£
321,684
-
321,684
6,622
27,642
78,225
585,924
648,958
1,347,371
(68,003)
1,279,368
1,601,052
622,989
831,215
146,848
978,063
1,601,052		 Charity
2020
£
309,662
12
309,674
-
134,174
79,699
252,733
615,566
1,082,172
(30,127)
1,052,045
1,361,719
426,897
723,761
211,061
934,822
1,361,719		 Charity
2019
£
321,684
12
321,696
-
33,644
78,225
585,924
634,222
1,332,015
(59,603)
1,272,412
1,594,108
622,989
831,215
139,905
971,120
1,594,109

For the year ending 31 December 2020 the parent company and group were entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. They were approved and authorised for issue by the directors on 20 July 2021 and signed on their behalf by:-

Sally Schupke - Chairman and Director

The annexed Notes form part of these financial statements

10

THE WEY & ARUN CANAL TRUST LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020

2020 2019 2019
Note £ £ £ £
Net cash flow from operating activities
Net (expenditure) for year (267,190) (332,535)
Adjustments for:
Interest receivable (16,045) (17,570)
Depreciation and impairment
of tangible fixed assets 34,187 33,039
(Gains) on investments (1,473) (2,074)
Decrease / (Increase) in stock 852 (839)
(Decrease) / increase in debtors (69,652) 278,391
(Decrease) / increase in creditors (29,548) 20,614
Net cash (used in) operating activities (348,869) (20,974)
Cash flow from investing activities
Payments to acquire tangible fixed assets (22,165) (116,450)
Payments to acquire investments - 90,000
Interest received 16,045 17,570
Net cash flow from investing activities (6,120) (8,880)
Net (decrease) in cash and cash equivalents (354,989) (29,854)
Cash and cash equivalents brought forward 1,234,882 1,264,736
Cash and cash equivalents carried forward 879,893 1,234,882
Cash and cash equivalents consists of:
Cash at bank and in hand 627,160 648,958
Short-term deposits 252,733 585,924
Cash and cash equivalents carried forward 879,893 1,234,882

The annexed Notes form part of these financial statements

11

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020

1. GENERAL INFORMATION

The Wey & Arun Canal Trust is a company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in Reference and administrative details. Details of the charity’s operations are provided in the Report of the trustees.

2. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.1 Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis under the historical cost convention 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 (FRS 102) - (Charities SORP (FRS 102)), the Companies Act 2006 and the Charities Act 2011.

The trustees have given due consideration to the ongoing impact of the Covid-19 outbreak. Although there is the potential of some continued negative financial impact in the short term in the subsidiary trading company, the finances of the charity itself are largely unaffected by the situation.

The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

2.2 Basis of consolidation

The financial statements consolidate the results of W & A Enterprises Ltd, which is a wholly owned subsidiary undertaking of the charity, on a line by line basis. The accounting year ends are coterminous.

2.3 Parent company disclosure exemptions

The parent charity has taken advantage of the disclosure exemption available in FRS 102 and has not presented a separate statement of cash flows. It has also taken advantage of section 408 of the Companies Act 2006 not to include an individual income and expenditure account for the parent company.

2.4 Income

All income is 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:

12

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

2. ACCOUNTING POLICIES (CONTINUED)

2.5 Expenditure

Expenditure is included when incurred, net of VAT. Costs which are identified as relating to restricted projects are allocated directly to those activities. Costs which relate to the general running of the charity are allocated against unrestricted funds, and within the statement of financial activities these expenses are shown as costs of generating funds, charitable activities, support costs and governance costs. An apportionment of staff wages and office costs between support costs and governance costs has been carried out on the basis of time spent by staff on the various activities.

The cost of charitable activities all relates to the charity's activities of canal restoration, renovation and operation. Support costs are expenditure incurred directly in supporting charitable activity. Restoration costs are generally not of a capital nature. The board is always considering opportunities for land purchases at strategic locations. When land is purchased for an amount exceeding nominal cost, the purchase is capitalised at cost.

Costs of generating funds include the costs to maintain the Trust’s profile with the general public and statutory authorities so as to retain regular financial support, together with the costs of keeping the membership informed of its ongoing activities.

Governance costs are those relating to the charity's compliance with constitutional and statutory requirements.

2.6 Restricted and designated funds

Restricted funds are funds subject to specific conditions imposed by donors as to how they may be used. The purposes and uses of the restricted funds are set out in note 15 to the accounts.

Designated funds are allocated out of unrestricted funds by the trustees for specific purposes. The use of such funds is at the trustees' discretion.

2.7 Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

2.8 Fixed Assets

Where the directors consider it appropriate for the restoration and reopening of the canal, the Trust purchases freehold land. The cost of freehold land is capitalised but related costs of the purchase are written off when incurred. With certain exceptions, where the directors consider these appropriate, all structures (such as locks and bridges) other than the Canal Centre are either owned by the land owner, or are adopted by the local council or highway authority. The Canal Centre is being written off over its estimated useful life of 50 years.

Any items of plant and machinery purchased for restoration work costing less than £5,000 are written off in the year of acquisition as their useful life is normally less than one year. Items costing over £5,000 are written off over their expected life on a straight line basis between 5 and 10 years.

The canal boat Wiggonholt is being leased to the charity's trading subsidiary and written off by equal annual instalments over its expected useful life of 20 years.

2.9 Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

2.10 Pensions

The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

13

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

3. FINANCIAL PERFORMANCE OF THE CHARITY

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary, W & A Enterprises Limited. The summary performance of the charity alone is:

Income
Profits made by subsidiary company and passed to the Trust
Other charges made to subsidiary company
Expenditure
Gains on investment assets
Net movement in funds		 2020
£
493,881
-
6,000
499,881
(733,744)
1,473
(232,390)		 2019
£
330,294
35,294
6,000
371,588
(706,197)
2,074
(332,535)

4.

DONATIONS, LEGACIES AND SIMILAR INCOME

Member subscriptions
Donations
General
Gift Aid receipts
Legacies
Milestone Club
Sponsorship
Grants
Chichester District Council
Fisherbeck Charitable Trust
Loxwood Parish Council
M J Camp Charitable Foundation
National Lottery Heritage Fund
The D'Oyly Carte Charitable Trust
Others		 Unrestricted
Funds
2020
£
32,205
44,059
14,254
168,312
14,695
23,761
265,081
11,334
3,000
100,000
13,100
127,434		 Restricted
Funds
2020
£
-
7,383
-
14,793
-
-
22,176
-
-
5,000
-
4,000
7,282
16,282		 Total
Funds
2020
£
32,205
51,442
14,254
183,105
14,695
23,761
287,257
11,334
3,000
5,000
100,000
13,100
4,000
7,282
143,716		 Total
Funds
2019
£
29,299
93,575
17,560
4,700
14,567
25,926
156,328
-
3,000
-
100,000
-
-
1,000
104,000

During the year the Trust received donated goods and services valued at open market value of £23,761 (2019: £25,926).

14

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

5. OTHER TRADING ACTIVITIES

Fund raising
Sales of waste paper etc
Sponsored walk receipts
Draws
Talks
Other income		 Unrestricted
Funds
2020
£
50
2,648
8,978
660
12,336
2,322		 Restricted
Funds
2020
£
-
-
-
-
-
-		 Total
Funds
2020
£
50
2,648
8,978
660
12,336
2,322		 Total
Funds
2019
£
4,287
8,374
8,986
636
22,283
814

6. RESULTS FROM TRADING ACTIVITY OF SUBSIDIARY

The charity The Wey & Arun Canal Trust Limited (by guarantee) has a wholly owned trading subsidiary which is incorporated in the U.K. W & A Enterprises Limited operates the Trust’s tripboats for public trips and hire under charter, together with the sale of merchandise to support the activities of the charity. A summary of its trading results is shown below. Accounts are filed with the Registrar of Companies.

Turnover
Cost of sales
Operating and administrative expenses
Other operating income
Governance costs
The subsidiary paid the following to the charity:
Leasing charges
Donations
Net (loss) / profit		 2020
£
20,726
(45,618)
(24,892)
(8,565)
5,607
(950)
(28,800)
6,000
-
6,000
(34,800)		 2019
£
93,804
(35,627)
58,177
(15,898)
-
(985)
41,294
6,000
35,294
41,294
-

15

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

7. COSTS OF RAISING VOLUNTARY INCOME

Staff costs
Fund-raising activities expenses
_Wey-South_magazine
Publicity and public relations
Sponsorship (Note 4)
Sponsored walk
_Wiggonholt_depreciation
Canal Centre depreciation		 Unrestricted
Funds
2020
£
23,448
3,050
6,228
1,000
-
63
4,523
-
38,312		 Restricted
Funds
2020
£
-
-
-
-
-
-
-
2,156
2,156		 Total
Funds
2020
£
23,448
3,050
6,228
1,000
-
63
4,523
2,156
40,468		 Total
Funds
2019
£
13,027
4,232
4,706
3,099
2,000
49
4,523
2,155
33,791

8. EXPENDITURE ON CHARITABLE ACTIVITIES

Restoration Expenses
Summit Level
North
Loxwood
Other
Training
Other expenses
Sponsorship (Note 4)
Staff costs
Canal operation
Insurance
Canal maintenance
Plant purchases
Plant maintenance
Plant & equipment depreciation
Support costs (see below)
Cost of charitable activities
Support costs
Staff costs
Office and other expenses
Legal fees
Affiliation fees
Sponsorship (Note 4)
Governance costs
Hall hire and meeting expenses
Independent examiner's fees		 Unrestricted
Funds
2020
£
25,823
63,409
45,844
31,119
5,121
11,700
69,787
11,339
7,475
92,160
2,466
9,112
27,508
402,863
58,878
461,741
2,118
10,486
29,782
1,461
12,061
270
2,700
58,878		 Restricted
Funds
2020
£
189,984
31,494
3,944
7,063
-
-
-
-
-
-
-
-
-
-
232,485
-
232,485
-
-
-
-
-
-
-
-		 Total
Funds
2020
£
215,807
94,903
49,788
38,182
5,121
11,700
69,787
11,339
7,475
92,160
2,466
9,112
27,508
635,348
58,878
694,226
2,118
10,486
29,782
1,461
12,061
270
2,700
58,878		 Total
Funds
2019
£
108,314
188,326
23,955
41,624
5,568
12,000
64,763
9,179
11,311
44,816
10,243
18,684
26,361
565,144
108,247
673,391
1,988
10,723
79,970
781
11,926
224
2,635
108,247

16

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

9. EMPLOYEE COSTS

No trustees received remuneration during the year (2019 £nil). One trustee received a total of £126 for travel expenses (2019 one trustee received £652).

The costs of the remaining staff were:

The costs of the remaining staff were:
Wages and salaries
Social security costs
Pension costs
Redundancy		 2020
£
100,353
3,783
1,697
3,800
109,633		 2019
£
94,624
3,410
1,632
-
99,666

No employee earned more than £60,000 during the period. The average full time equivalent number of staff employed by the charity during the year was as follows:

Average full time equivalent number of staff employed
Average number of staff employed (headcount)		 2020
No
4.4
9		 2019
No
3.7
8

The charity relies substantially on its core team of volunteers. The work carried out covers:

2020
Visiting groups hours
Skilled
-
Unskilled
-
Management
-
Admin/publicity
-
Estimated Totals
-		 2020
Total hours
11,578
3,418
3,951
1,796
20,743		 2020
Value
£
138,936
41,016
47,412
35,920
263,284		 2019
2019
Total hours
Value
£
14,566
174,792
10,150
121,800
3,486
41,832
3,395
67,900
31,597
406,324

In accordance with generally accepted accounting practice, these hours are not included as monetary equivalents in sponsorship.

17

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

10. TANGIBLE FIXED ASSETS

Cost
At 1st January 2020
Additions
Disposals
At 31st December 2020
Depreciation
At 1st January 2020
Charge for the year
Eliminated on disposals
At 31st December 2020
Net book value
At 31st December 2020
At 31st December 2019		 Freehold
Land
£
77,000
-
-
77,000
-
-
-
-
77,000
77,000		 Canal
Centre
£
107,789
-
-
107,789
17,240
2,156
-
19,396
88,393
90,549		 Plant &
Equipment
£
189,053
22,165
-
211,218
75,633
27,508
-
103,141
108,077
113,420		 Wiggonholt
£
90,469
-
-
90,469
49,754
4,523
-
54,277
36,192
40,715		 Subsidiary
owned
Boats
£
12,850
-
-
12,850
12,850
-
-
12,850
-
-		 Total
£
477,161
22,165
-
499,326
155,477
34,187
-
189,664
309,662
321,684

11. FIXED ASSET INVESTMENT

Wholly owned subsidiary (see note 3):-
W&A Enterprises Ltd: 12 ordinary shares of £1 each		 2020
2019
£
£
12
12
12
12
12. DEBTORS
Consolidated
2020
£
Trade debtors
5,339
Legacies receivable
50,000
VAT refunds due
26,039
Due from subsidiary company
-
Prepayments
13,085
Income tax recoverable (gift aid)
2,831
97,294		 Consolidated
2019
£
1,881
-
24,642
-
-
1,119
27,642		 Charity
2020
£
-
50,000
26,039
45,116
10,188
2,831
134,174		 Charity
2019
£
-
-
24,651
7,874
-
1,119
33,644

18

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

13. CURRENT ASSET INVESTMENT

Consolidated
2020
£
79,699
Investments listed on
recognised stock exchanges		 Consolidated
2019
£
78,225		 Charity
2020
£
79,699		 Charity
2019
£
78,225
The historic cost of the investments on 31st December 2020 was £80,000 (2019: £80,000).
Market value brought forward
78,225
Transfers in year
-
Unrealised gain
1,473
Market value carried forward
79,698
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Consolidated
Consolidated
Charity
2020
2019
2020
£
£
£
Trade creditors
28,411
60,212
28,377
Receipts paid in advance
6,897
3,202
-
Social security and other taxes
448
1,955
-
Sundry creditors and accruals
2,700
2,634
1,750
38,456
68,003
30,127		 166,151
(90,000)
2,074
78,225
Charity
2019
£
55,998
-
1,955
1,650
59,603
15. FUNDS
a)
Restricted Funds
Canal Centre
Restoration funds:
Summit Level
North
Loxwood
General Restoration
Total Restricted Funds
2019
Restricted Funds
New Canal Boat
Canal Centre
Restoration funds:
Summit Level
North
Loxwood
General Restoration
Total Restricted Funds		 Balance at
1 Jan
2020
£
89,440
423,547
103,228
560
6,214
622,989
2,084
91,595
480,672
136,754
6,945
5,790
723,840		 Income
£
-
-
14,793
5,500
18,165
38,458
-
-
-
20,607
-
12,359
32,966		 Expenditure
£
(2,156)
(189,984)
(31,494)
(3,944)
(7,063)
(234,641)
(2,084)
(2,155)
(57,586)
(25,774)
(6,385)
(12,995)
(106,979)		 Balance at
Fund
31 Dec
Transfers
2020
£
£
-
87,284
-
55
233,618
-
86,527
36
2,152
-
17,316
91
426,897
-
-
-
89,440
-
-
461
423,547
(28,359)
103,228
-
560
1,060
6,214
(26,838)
622,989

19

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

15. FUNDS (CONTINUED)

b) Unrestricted Funds
Designated Funds:
Fixed Assets
North
Loxwood
Summit
General Restoration
General Funds
Trading Subsidiary
Total Funds:
Retained in parent
Retained in subsidiary
2019
Designated Funds:
Fixed Assets
North
Loxwood
Summit
General Restoration
General Funds
Trading Subsidiary
Total funds:
Retained in parent
Retained in subsidiary		 Balance at
1 Jan
2020
£
232,244
77,842
161,914
335,525
23,690
831,215
139,905
6,943
978,063
1,601,052
1,594,109
6,943
1,601,052
144,594
194,663
224,129
304,743
53,383
921,512
281,292
6,943
1,209,747
1,933,587
1,926,644
6,943
1,933,587		 Income
£
-
-
-
-
-
-
456,896
26,333
483,229
521,687
332,368
93,804
426,172
-
-
-
-
-
-
299,402
93,804
393,206
426,172
332,368
93,804
426,172		 Expenditure
£
-
-
-
-
-
-
(499,103)
(55,133)
(554,236)
(788,877)
(706,197)
(52,510)
(758,707)
-
-
-
-
-
-
(599,218)
(52,510)
(651,728)
(758,707)
(706,197)
(52,510)
(758,707)		 Fund
Transfers
£
(9,866)
153,787
(81,897)
(177,657)
8,179
(107,454)
113,363
(6,000)
(91)
-
41,294
(41,294)
-
87,650
(116,821)
(62,215)
30,782
(29,693)
(90,297)
158,429
(41,294)
26,838
-
41,294
(41,294)
-		 Balance at
31 Dec
2020
£
222,378
231,629
80,017
157,868
31,869
723,761
211,061
(27,857)
906,965
1,333,862
1,261,574
6,943
1,268,517
232,244
77,842
161,914
335,525
23,690
831,215
139,905
6,943
978,063
1,601,052
1,594,109
6,943
1,601,052

20

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2020

15. FUNDS (CONTINUED)

Restricted

The New Canal Boat and Canal Centre funds represent donations specifically received to fund the construction of the assets. Depreciation relating to the assets is being charged against the funds.

Detailed records of restoration funds received and expended are kept by the trust. These have been summarised this year into the geographical areas of the canal and miscellaneous funds.

Unrestricted

The fixed assets fund represents the net book value of fixed assets owned by the charity not funded by restricted income.

The North, South and Summit funds represent the totals of general funds received assigned by the trustees to specific projects on these areas of the canal.

General Restoration Funds reflects the allocation of funds for minor specific projects currently in hand.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020
Tangible fixed assets
Current assets
Creditors falling
due within one year
2019
Tangible fixed assets
Current assets
Creditors falling
due within one year		 Unrestricted
Funds
£
222,378
(718)
(38,456)
183,204
232,244
(17,393)
(68,003)
146,848		 Designated
Funds
£
-
723,761
-
723,761
-
831,215
-
831,215		 Unrestricted
Total
Funds
£
222,378
723,043
(38,456)
906,965
232,244
813,822
(68,003)
978,063		 Restricted
Funds
£
87,284
339,613
-
426,897
89,440
533,549
-
622,989		 Total
Funds
£
309,662
1,062,656
(38,456)
1,333,862
321,684
1,347,371
(68,003)
1,601,052

17. FINANCIAL COMMITMENTS

At 31st December 2020, the Trust had committed to pay £55,000 in relation to Compasses Bridge and £66,021 in relation to Tickner's Heath.

21