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2021-12-31-accounts

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

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

COMPANY NO: 01094232

REGISTERED CHARITY NUMBER: 265331

THE WEY & ARUN CANAL TRUST LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

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 22

THE WEY & ARUN CANAL TRUST LIMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 2021

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 Tony Ford Dennis Gillen Alan Johnson Julian Morgan Bill Nicholson John Reynolds Sally Schupke John Talbot

Company Secretary Giles Eyre

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

Anderson Rowntree Solicitors Wisteria House Petworth West Sussex GU28 0AJ

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 2021

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 2021. They are also prepared so as 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 many 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. The Trust also provides permissive paths as a public amenity at Birtley (near Bramley, Surrey – opened in 2021) and in the Hunt Nature Park in Shalford, Surrey.

  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 encourages water-based activities for all and provides appropriate infrastructure on restored sections of the canal both for private individuals using small unpowered boats (including paddleboards, canoes and kayaks) and for private and community organisations providing similar activities for members of the public or for their community groups.

  4. The Trust contributes to the local economy through the activities of its trading company and through its canal restoration activities. In both aspects 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.

  5. 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.

  6. 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 that which existed before. The Trust encourages the involvement of members of the public and in particular school groups and young people in activities which contribute to the natural environment of the canal.

2

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

Contribution of Volunteers

The Trust is volunteer-led and largely dependent on volunteers for its day-to-day activities. Volunteer hours contributed during 2021 are estimated to be equivalent to at least 13 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.

ACHIEVEMENTS AND PERFORMANCE

Charitable Activities

The Trust’s principal activities during 2021 on each of the sections identified as priorities were as follows:

  1. In the Shalford/Bramley section, following submission of the planning application for Phase 1 of the Bramley Link (Gun’s Mouth Island to Tannery Lane) work continues on detailed planning of the new canal route. The Shalford Information Centre was completed and opened to the public alongside the Downs Link and adjacent to Hunt Nature Park. South of Bramley, on the Birtley Reach, a new circular walk for public use using a section of new canal towpath and the existing Downs Link path and a temporary bridge over the canal was opened. Preparatory work has continued on a new lifting bridge to replace this temporary bridge and on a second new lifting bridge to replace the causeway carrying a bridleway for which planning permission has been given. Canal bed and ancillary land was acquired at Rooks Hill and Fanesbridge near Bramley, Surrey.

  2. In the Alfold/Dunsfold section at Tickner’s Heath, a new bridge has been installed to carry pedestrians and a bridleway over a new canal route, and part of that route from the line of the existing canal up to the bridge has been cut. Preparatory work on a temporary re-routing of the road pending construction of a new bridge was commenced. Preparatory work on plans for replacement of a causeway carrying the A281 at Fastbridge, Dunsfold continued.

  3. In the Ifold/Loxwood section, at Gennets Farm a lease was taken on a further section of canal and clearance work carried out. Further work was carried out to deal with leaks on the canal at Long Meadow, Drungewick.

  4. In the Arun Valley a section of in-water canal at Northlands Farm was acquired and work carried out to manage vegetation on the canal side. Restoration of the Lordings Waterwheel has been progressed. Restoration work at Pallingham Bridge was completed and an archaeological desk-based assessment of Pallingham Docks was carried out.

Other important activities included:

  1. Continuing work on the planning application to Waverley Borough Council for a new section of canal at Rushett Farm, between Bramley and Cranleigh.

  2. Continuing detailed work on the project to replace the existing bridge on Elmbridge Road near Cranleigh which will provide navigable height.

  3. The operation of the Loxwood Canal Centre and Shalford Information Centre (opened in 2021) as central points for welcoming visitors and providing information about the canal.

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

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

  6. Operation of a Mobile Display Vehicle and publicity unit at public events in Surrey and West Sussex to raise awareness of the Trust’s work.

  7. The addition of a wheelchair-accessible vessel, Walter Grove, to the Trust’s fleet of passenger-carrying boats.

3

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

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, although the recycling of newspaper became financially non-viable and ceased in the spring of 2021;

  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 improved trading conditions in 2021 as the country adapted to Covid-19 restrictions. Capacity on boat trips continued to be reduced as a result.

FINANCIAL REVIEW

Financial position

In summary, the Trust spent 2021 progressing restoration projects and planning future work. During the year the Trust’s expenditure (£681,386) was less than income (£788,112).

The Trust relies very largely on the generosity of its members and supporters. Sponsorship and gifts in kind amounted to approximately £20,500 in 2021. The Trust currently pays no rent for its offices in Shalford or The Granary in Loxwood (currently in use for storage).

Reserves Policy

The Trust’s general policy is to assign funds to specific projects as soon as they are available, rather than building up substantial reserves. An exception is the Property Fund which is intended to support significant purchases in the future. Membership subscriptions and regular donations are only sufficient to cover core spending, 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 2021 (net assets) are £1,440,210, which includes £254,598 restricted to specific projects. In accordance with the Trust’s policy of not holding substantial reserves, a further £401,520 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) £256,907
South (Ifold/Loxwood) £31,937
Summit (Alfold/Dunsfold) £136,177
Others £145,969
Total £570,990

4

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

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 2021 amounted to £481,681, leaving free reserves of £387,539 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

The impact of the Covid-19 pandemic has reduced during the year and is not expected to impact significantly in 2022. The Trust’s plans for each of the areas identified as priorities are as follows:

1. In the Shalford/Bramley area:

2. In the Alfold/Dunsfold area:

3. In the Ifold/Loxwood area:

5

THE WEY & ARUN CANAL TRUST LIMITED TRUSTEES’ ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

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 9 meetings of the board (Council of Management) during 2021. The members of the board during that year and their attendance records were:

Sally Schupke (Chairman) 9 Tony Coles 7
Margaret Darvill 9 Tony Ford 8
Dennis Gillen 9 Alan Johnson 9
Julian Morgan 9 John Reynolds 8
John Talbot 9 Bill Nicholson 8
Giles Eyre 7

At the end of 2021, the Trust had two full-time and five part-time employees and one apprentice. 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, two local wildlife trusts and Surrey Hills Enterprises, 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 2021

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.

The trustees’ annual report was approved by the trustees on 19 April 2022, and is signed on their behalf by:

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

7

THE WEY & ARUN CANAL TRUST LIMITED INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

I report to the charity trustees on my examination of the accounts of the group and parent company for the year ended 31 December 2021 as set out on pages 9 to 22.

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 2021

Unrestricted
Funds
2021
Note
£
Income
4
Subscriptions
31,538
Donations and legacies
334,596
Grants
113,500
Other trading activities
Fund-raising
5
26,554
Trading subsidiary income
6
53,932
Other income
5
5,521
Investment income
Bank interest
7,139
Total Income
572,780
Expenditure
Expenditure on raising funds
Costs of raising voluntary income
7
34,748
Trading subsidiary costs
6
25,200
Charitable activities
8
347,510
Total expenditure
407,458
Net income / (expenditure) for the year
165,322
Transfers between funds
113,703
279,025
(Loss) / gain on investment assets
13
(378)
Net movement in funds
278,647
Reconciliation of funds
Total funds brought forward
906,965
Total funds carried forward
1,185,612
All amounts derive from continuing activities.
Donations, legacies
and similar income		 Restricted
Funds
2021
£
-
117,848
97,484
-
-
-
-
215,332
2,156
-
271,772
273,928
(58,596)
(113,703)
(172,299)
-
(172,299)
426,897
254,598		 Total
Funds
2021
£
31,538
452,444
210,984
26,554
53,932
5,521
7,139		 Total
Funds
2020
£
32,205
287,257
143,716
12,336
26,333
2,322
16,045
788,112 520,214
36,904
25,200
619,282		 40,468
54,183
694,226
681,386 788,877
106,726
-		 (268,663)
-
106,726
(378)		 (268,663)
1,473
106,348 (267,190)
1,333,862 1,601,052
1,440,210 1,333,862

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 2021

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
2021
£
481,681
-
481,681
5,308
128,838
79,321
176,474
591,692
981,633
(23,104)
958,529
1,440,210
254,598
798,073
387,539
1,185,612
1,440,210		 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		 Charity
2021
£
481,681
12
481,693
-
130,436
79,321
176,474
581,912
968,143
(16,569)
951,574
1,433,267
254,598
798,073
380,596
1,178,669
1,433,267		 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

For the year ending 31 December 2021 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 19 April 2022 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 2021

2021 2020 2020
Note £ £ £ £
Net cash flow from operating activities
Net income / (expenditure) for year 106,348 (267,190)
Adjustments for:
Interest receivable (7,139) (16,045)
Depreciation and amortisation 34,561 34,187
Losses / (gains) on investments 378 (1,473)
Decrease in stock 462 852
(Increase) in debtors (31,544) (69,652)
(Decrease) in creditors (15,352) (29,548)
Net cash from / (used in) operating activities 87,714 (348,869)
Cash flow from investing activities
Payments to acquire tangible fixed assets (206,580) (22,165)
Interest received 7,139 16,045
Net cash flow (used in) investing activities (199,441) (6,120)
Net (decrease) in cash and cash equivalents (111,727) (354,989)
Cash and cash equivalents brought forward 879,893 1,234,882
Cash and cash equivalents carried forward 768,166 879,893
Cash and cash equivalents consists of:
Cash at bank and in hand 591,692 627,160
Short-term deposits 176,474 252,733
Cash and cash equivalents carried forward 768,166 879,893

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 2021

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 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:

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.

12

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.5 Expenditure (continued)

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 trustees 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 trustees consider these appropriate, all structures (such as locks and bridges) other than the Loxwood Canal Centre are either owned by the land owner, or are adopted by the local council or highway authority. The Loxwood Canal Centre is being written off over an estimated useful life of 50 years. The Shalford Information Centre is being written off over an estimated useful life of 20 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 2021

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
Interest charged to subsidiary company (see Note 6)
Other charges made to subsidiary company
Expenditure
(Loss) / gain on investment assets
Net movement in funds		 2021
£
734,180
474
574
6,000
741,228
(669,302)
(378)
71,548		 2020
£
493,881
-
6,000
499,881
(733,744)
1,473
(232,390)

4. DONATIONS, LEGACIES AND SIMILAR INCOME

Member subscriptions
Donations and legacies
General
Gift Aid receipts
Legacies
Milestone Club
Donated land
Sponsorship
Grants
Chichester District Council
The D'Oyly Carte Charitable Trust
Fisherbeck Charitable Trust
Loxwood Parish Council
M J Camp Charitable Foundation
National Lottery Heritage Fund
The Royal Oak Foundation
Sussex Industrial Archaeology Society
Others (including grants from donors
who wish to remain anonymous)		 Unrestricted
Funds
2021
£
31,538
75,683
19,281
160,516
14,616
44,000
20,500
334,596
-
-
3,000
-
110,000
-
-
500
-
113,500		 Restricted
Funds
2021
£
-
22,848
-
95,000
-
-
-
117,848
10,096
-
-
-
-
-
37,388
-
50,000
97,484		 Total
Funds
2021
£
31,538
98,531
19,281
255,516
14,616
44,000
20,500
452,444
10,096
-
3,000
-
110,000
-
37,388
500
50,000
210,984		 Total
Funds
2020
£
32,205
51,442
14,254
183,105
14,695
-
23,761
287,257
11,334
4,000
3,000
5,000
100,000
13,100
-
-
7,282
143,716

During the year the Trust received donated goods and services valued at open market value of £20,500 (2020: £23,761).

14

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

5. OTHER TRADING ACTIVITIES

Fund raising
Sales of waste paper etc
Sponsored walk receipts
Draws
Talks
Other income		 Unrestricted
Funds
2021
£
5,430
10,596
9,690
838
26,554
5,521		 Restricted
Funds
2021
£
-
-
-
-
-
-		 Total
Funds
2021
£
5,430
10,596
9,690
838
26,554
5,521		 Total
Funds
2020
£
50
2,648
8,978
660
12,336
2,322

6. RESULTS FROM TRADING ACTIVITY OF SUBSIDIARY AND INTERCOMPANY BALANCE

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
Government grant: Job retention scheme
Grants from parent charity (see Note 15)
Governance costs
The subsidiary paid the following to the charity:
Leasing charges
Interest payable to parent company (see below)
Donations
Net profit / (loss)		 2021
£
53,932
(25,200)
28,732
-
14,096
(980)
41,848
6,000
574
474
7,048
34,800		 2020
£
20,726
(54,183)
(33,457)
5,607
-
(950)
(28,800)
6,000
-
-
6,000
(34,800)

The activities of the subsidiary company were significantly curtailed due to impact of the Covid-19 outbreak, and a balance of £45,116 was due from the subsidiary to the parent company at 31 December 2020 (see Note 12). From that date, the trustees of the parent charity formally agreed with the directors of the subsidiary company that interest would be payable at 2% per annum on the outstanding intercompany balance until it is settled. The balance is to be settled in full no later than 31 December 2022. The interest charge in 2021 from the parent charity to the subsidiary company was £574.

More subsidiary activities were possible in 2021 than in 2020, with the year end intercompany balance reducing to £7,189 on 31 December 2021.

15

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

7. COSTS OF RAISING VOLUNTARY INCOME

Staff costs
Fund-raising activities expenses
_Wey-South_magazine
Publicity and public relations
Sponsored walk
_Wiggonholt_depreciation
Loxwood Canal Centre depreciation
Shalford Information Centre depreciation		 Unrestricted
Funds
2021
£
13,930
2,864
6,085
5,840
27
4,523
-
1,479
34,748		 Restricted
Funds
2021
£
-
-
-
-
-
-
2,156
-
2,156		 Total
Funds
2021
£
13,930
2,864
6,085
5,840
27
4,523
2,156
1,479
36,904		 Total
Funds
2020
£
23,448
3,050
6,228
1,000
63
4,523
2,156
-
40,468

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
2021
£
24,911
36,138
5,750
35,549
5,782
10,500
78,217
6,483
11,411
24,342
7,697
10,932
26,403
284,115
63,395
347,510
17,195
16,364
16,274
218
10,000
564
2,780
63,395		 Restricted
Funds
2021
£
229,810
31,334
500
10,128
-
-
-
-
-
-
-
-
-
-
271,772
-
271,772
-
-
-
-
-
-
-
-		 Total
Funds
2021
£
254,721
67,472
6,250
45,677
5,782
10,500
78,217
6,483
11,411
24,342
7,697
10,932
26,403
555,887
63,395
619,282
17,195
16,364
16,274
218
10,000
564
2,780
63,395		 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

16

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

9. EMPLOYEE COSTS

No trustees received remuneration during the year (2020: £nil). No trustees were reimbursed for personal expenses during the year (2020: one trustee reimbursed £126).

The total donations received from all trustees during the year were £17,203. There were no conditions associated with these donations.

The costs of the remaining staff were:

Wages and salaries
Social security costs
Pension costs
Redundancy		 2021
£
107,538
3,087
1,769
-
112,394		 2020
£
100,353
3,783
1,697
3,800
109,633

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)		 2021
No
3.8
8		 2020
No
4.4
9

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

2021
Visiting groups hours
Skilled
7,534
Unskilled
9,126
Management
266
Admin/publicity
309
Estimated Totals
17,235		 2021
Total hours
9,777
10,298
4,625
1,899
26,599		 2021
Value
£
117,324
123,576
55,500
37,980
334,380		 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

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 2021

10. TANGIBLE FIXED ASSETS

Cost
At 1st January 2021
Additions
Disposals
At 31st December 2021
Depreciation
At 1st January 2021
Charge for the year
Eliminated on disposals
At 31st December 2021
Net book value
At 31st December 2021
At 31st December 2020		 Freehold
Land
£
77,000
169,000
-		 Loxwood
Canal
Centre
£
107,789
-
-		 £
-
29,580
-
Shalford
Information
Centre		 £
211,218
8,000
-
Plant &
Equipment		 £
90,469
-
-
Wiggonholt		 £
12,850
-
-
Subsidiary
owned
Boats		 Total
£
499,326
206,580
-
246,000 107,789 29,580 219,218 90,469 12,850 705,906
-
-
-		 19,396
2,156
-		 -
1,479
-		 103,141
26,403
-		 54,277
4,523
-		 12,850
-
-		 189,664
34,561
-
- 21,552 1,479 129,544 58,800 12,850 224,225
246,000 86,237 28,101 89,674 31,669 - 481,681
77,000 88,393 - 108,077 36,192 - 309,662

11. FIXED ASSET INVESTMENT

11. FIXED ASSET INVESTMENT
Wholly owned subsidiary (see Note 6):-
W&A Enterprises Ltd: 12 ordinary shares of £1 each
12. DEBTORS
Consolidated
2021
£
Trade debtors
3,914
Legacies receivable
79,865
VAT refunds due
15,650
Due from subsidiary company (see Note 6)
-
Prepayments
13,960
Other debtors
1,741
Income tax recoverable (gift aid)
13,708
128,838		 Consolidated
2020
£
5,339
50,000
26,039
-
13,085
-
2,831
97,294		 2021
£
12
12
Charity
2021
£
-
79,865
15,650
7,189
12,283
1,741
13,708
130,436		 2020
£
12
12
Charity
2020
£
-
50,000
26,039
45,116
10,188
-
2,831
134,174

18

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

13. CURRENT ASSET INVESTMENT

Consolidated
Consolidated
Charity
2021
2020
2021
£
£
£
79,321
79,699
79,321
The historic cost of the investments on 31st December 2021 was £80,000 (2020: £80,000).
Market value brought forward
79,699
Unrealised gain
(378)
Market value carried forward
79,321
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Consolidated
Consolidated
Charity
2021
2020
2021
£
£
£
Trade creditors
15,321
28,411
14,769
Receipts paid in advance
4,777
6,897
-
Social security and other taxes
226
448
-
Sundry creditors and accruals
2,780
2,700
1,800
23,104
38,456
16,569
Investments listed on
recognised stock exchanges		 Charity
2020
£
79,699
78,225
1,473
79,698
Charity
2020
£
28,377
-
-
1,750
30,127

19

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

15. FUNDS

a)
Restricted Funds
Loxwood Canal Centre
Restoration funds:
Summit Level
North
Loxwood
General Restoration
Subsidiary company support
Total Restricted Funds		 Balance at
1 Jan
2021
£
87,284
233,618
86,527
2,152
13,316
4,000
426,897		 Income
£
-
1,620
70,000
-
133,616
10,096
215,332		 Expenditure
£
(2,156)
(229,810)
(31,334)
(500)
(10,128)
-
(273,928)		 Balance at
Fund
31 Dec
Transfers
2021
£
£
-
85,128
4,762
10,190
(29,580)
95,613
211
1,863
(75,000)
61,804
(14,096)
-
(113,703)
254,598

The subsidiary company support fund represents voluntary income which is received by the charity, but is restricted towards supporting the activities of the subsidiary company (see Note 6). The transfer out of the fund represents that income being passed from the parent to the subsidiary in accordance with the original restrictions.

Transfers out of other restricted funds and into the general fund represent the costs of fixed asset purchases which were paid through restricted funds in the year and capitalised.

2020
Restricted Funds
Loxwood Canal Centre
Restoration funds:
Summit Level
North
Loxwood
General Restoration
Subsidiary company support
Total Restricted Funds		 Balance at
1 Jan
2020
£
89,440
423,547
103,228
560
6,214
-
622,989		 Income
£
-
-
14,793
5,500
14,165
4,000
38,458		 Expenditure
£
(2,156)
(189,984)
(31,494)
(3,944)
(7,063)
-
(234,641)		 Balance at
Fund
31 Dec
Transfers
2020
£
£
-
87,284
-
55
233,618
-
86,527
36
2,152
-
13,316
-
4,000
91
426,897

20

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

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
2020
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
2021
£
222,378
231,629
80,017
157,868
31,869
723,761
211,061
(27,857)
906,965
1,333,862
1,361,719
(27,857)
1,333,862
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		 Income
£
-
-
-
-
-
-
504,374
68,028
572,402
787,734
719,706
68,028
787,734
Income
£
-
-
-
-
-
-
456,896
26,333
483,229
521,687
495,354
26,333
521,687		 Expenditure
£
-
-
-
-
-
-
(381,278)
(26,180)
(407,458)
(681,386)
(655,206)
(26,180)
(681,386)
Expenditure
£
-
-
-
-
-
-
(499,103)
(55,133)
(554,236)
(788,877)
(733,744)
(55,133)
(788,877)		 Fund
Transfers
£
174,175
(70,335)
(49,943)
(31,881)
52,296
74,312
46,439
(7,048)
113,703
-
7,048
(7,048)
-
Fund
Transfers
£
(9,866)
153,787
(81,897)
(177,657)
8,179
(107,454)
113,363
(6,000)
(91)
-
6,000
(6,000)
-		 Balance at
31 Dec
2021
£
396,553
161,294
30,074
125,987
84,165
798,073
380,596
6,943
1,185,612
1,440,210
1,433,267
6,943
1,440,210
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
1,361,719
(27,857)
1,333,862

21

THE WEY & ARUN CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 2021

15. FUNDS (CONTINUED)

Restricted

The Loxwood Canal Centre fund represents donations specifically received to fund the construction of the asset. Depreciation relating to the asset is being charged against the fund.

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

2021
Tangible fixed assets
Current assets
Creditors falling
due within one year
2020
Tangible fixed assets
Current assets
Creditors falling
due within one year		 Unrestricted
Funds
£
396,553
14,090
(23,104)
387,539
222,378
(718)
(38,456)
183,204		 Designated
Funds
£
-
798,073
-
798,073
-
723,761
-
723,761		 Unrestricted
Total
Funds
£
396,553
812,163
(23,104)
1,185,612
222,378
723,043
(38,456)
906,965		 Restricted
Funds
£
85,128
169,470
-
254,598
87,284
339,613
-
426,897		 Total
Funds
£
481,681
981,633
(23,104)
1,440,210
309,662
1,062,656
(38,456)
1,333,862

17. FINANCIAL COMMITMENTS

At 31st December 2021, the Trust had committed to pay £55,000 in relation to Compasses Bridge and £22,000 in relation to access works at Northlands Farm.

22