MERCHANT N LOCOMOTIVE PRESFRVATION SOCIETY ED A cojn An limited b uaramtee no share ca Rtal REPORT AND FINANCIAL STATEMEN Year Ended 31st December 2023 BLAIN PRXTCHAIID LIbirrED Chartered Certified Aceountsnts MERCHANT NAVY LOCOMOTIVE PRESERVA N SOCIETY LtMrrED Acom Ilmited b uar*ntee havin o share ca Ital ACES Report of the CouDcil of Managem¢nt Statem¢nt of the CouTrcil of Managemenes Regponsibilities Report of th¢ Independent Examiller St*emellt of Finaucial Adivities Balance Sheet Notes Éo the Accounts 8- 11 TATUS OF SOC The Society is rsgistercd under th¢ Companies Act (No. l 114826) as a ¢ompany limited by gllarantee and as a Charity (No. 266801). RBGISTZRED OFFICE AND PRINCIP L ADDRFSS 341&Uttoxeter Road Mickleover Derby EnglaniL DE3 9AH BANKE Lloyds TSB PKC Whit8t8ble Kcnt INDEP NDKNT EXAMINERS Blain PritCh￿d LiTnited Chartered Certificd Accowitants 74 College Road Maidstone Ketkt ME15 6SL MERCIIANT NAVY LOCOVI JOTIVE PRESERVATION SOCIETY Acom an limited b UArant c havAn Ho share c RKPORT OF THE COUNCIL OF MANAGEMENT For th¢ ear ende 31 Deeembtr 2023 The Soriety's DIre¢torsnn￿teCS (the Cowicil of Management - the Council) present their atmual report and independently examin¢d account5 for COllSideratioi) by the meTE]bership of the Socicty. The Council confimi the repoit and fllvdncial statements comply with the requÈrernents of the Charities Act 2011, the Compathies Act 2006 and th¢ Statemeni of Recommended Practice (SORP) 2005 (second edition). Or%anÉsiitio The Merchant Navy Locomotiye Preservation Society (M.N.L.P.S.) is constituted as a Company limited by guarantee and is therefore govemed by a memoi'andum and articles of association. The Company is lll¢Q4)orated in bngland under the Companies Act 2006 (No 01114826). The Soci¢ty is a150 registered with the Charity Commission under the Charities Act 2006 (No 266801). The Society is the sole sharebolder in a subsidiary company, A4NLPS (Operaling) Limiied. which is responsible under a fee payable licenct issued to it by the Soci¢ty for the operation and day-to-day Illai￿tenance (excluding major overhau15) of the Society's locomotiv¢. Ownership of the locomotive always iEm&itJs with the Society. CouAell ol M?D*gemertt Statement The Society's affairs in 2023 were seTiously aff¢cted by tlie continued on-going rep8il'S to th¢ locomotive boiler. Othei. Ihall for May and Scptcmber. meetings were held at which the Cnllneil addi'essed bolli routiTre business and specifie matter5 of Èmportance, in particular the issues surTounding the repails I'equired to ihe thertaikc syphons, fwebox side shect% 2nd stays. In doipg so it continued to addrcss the opportunities and risks that the So¢iety might face, with th£ inteAtion of establi5hiAg and developing policies, stt'ategies> praLtices, and systems aim¢d at maximizitig opportunities and minim1￿ significallt risks, bc they ¢ommercial. finalltial, human i'esources, h¢alth & Safety etc. The Council contillued to keep under revicw how the Soci¢ly achiev￿ its aims and objtctiv¢s paying due regard to, and complianLe with, the Charity C.Dmmission's guidance OD meeting the requ￿¢MEllts on public benefit. The Council worked closely with the Marketing & Opeiations sub401￿mIttee (MOSC) which met on a regular basis to plan for the eventual resumption of I'asltour duty. Health and safety remain at the forefiDnt ith all aspects of the management and operations of the So¢iety and its subsidiary ann. The Council remains fully committ¢d to ¢nsuring that polÉcics. supporting Jnanuals and procedur¢s contlDlle to evolv4 d¢vclop. and change in line with the standards, legislation and other external hznges and are adhei'ed to by all those members undeilaking th¢ various tasks requii'ed to enable the locomotive and sllpport coach to be operated. To this end the manageinent sy.8tem is ¢onsidered as 'live,' with regular on-8Oitw review and amendment. as necessary. There were no ac¢id¢nts reportable under RIDDOK during the year. The Society r¢cDrded a financial surplus of some £50,181 and at th¢ year's end was valued at over £460,000. Tot&] income was some £298,000, of which over £71,000 was donatÈons and gifts. Expendituir amounted to approximat¢ly £248,000. Under clause 4 of the eompany's Memtsrandum and Articles of Association, 'Ihe IAcome andpp'oper)J tsf the coiiipaNy shall be uppliEd solely toww'd% ihe ppoiKolion of ils objecis and porlitsn ihereof shall be PL7id oi. (ransf8ri-ed direcrty or indirecily by W¢ry of a dividend. bomis or oihejryvise howsoevev by way of profEt. ro MeiAbers of ihe Company,. The Society'$ Tangible fix¢d assets air detailed on the BalaDce sheet. Aquisitions and disposals of tangible fixed assets are shown atNole 5 to the accoullt5. It should be noted that the Company, maw asset, ex Bri¢isli Railways Southern Regioii, Merchant Navy Clas5 Steam locomotive No. 35028 "Cla LiNe" is showE] at its 1967 puychase price of £2,200. It will be apprecsated, that its current r¢alisable value, whilst extrernely difflcult to establish piE¢tsely, is mor¢ than tl)is figure. That said, the Directorsifrustees are iJTr discussions wilh oui. insurers with a view to atnending tliis ftgure,. fts has been don¢ for the 5UPPOrt coach. In keepI￿g with the DiJ'ectors'rrii]stees' i'esponsibilities for keeping adequate I'eserve& they continue thesr policy of maintaining sufficient funds as free res¢ryes of the Company. whilst at the same time having lo heavily invest in the overhaul of the locomotive boil￿ and woi'k on the tendei.. It Is most fortunate that the exp¢nse of fitting the (CET) Controlled Bmi88ions Toilet to the support coach was fvnded by Network Rail. this being cla$s¢d as a 'NetWO￿ Change., The totttinued out of service period ofthe locomotive, and the requirement to use specialised contract labouT for the repaii. wol* resulted in a decrease in the level of voluntary work OR the locomotive and sllpport coa¢h. FDty- nine membei's a5SiSted in vai'ious capa¢iSies and thei]. combined efforts amounted to 635 days of recorded work, a reduction over 2022. However, this 15 Still a considerable ilutnb￿. of days, und¢rtakfftg work on the boiler longside th¢ specialised contt2ctor5 al Leaky Finders. and on the tender 2nd support coach at Stewarts Lène. Given the ¢ircumstances the Council of Management remjin most grnt¢fvl for the tsme and effort put in by those working party members. The Council is saddened to have received notification of the passing of the followitig members.. A Wild. D Flood, S F05ter, E S(routs and R A Hunt. Ouy condolences go to all the families and frienth. At the end of 2023 embership stood at 521. Principal a¢tivitLes The object and principal activity of th¢ M.N.L.P.S. continu¢s to be the pre$￿vation and maintenance in operational condition of ex-British Railways Southern Region, Merehant Navy Class Lo¢omotiYe No. 35028 "Clan Line" and its operation on the mainline rail netwoik of Bi'itain. It IS the last surviving operational preserved locomotive based in centryl lJ)ndon. The locomotive at the heart of this activity is a working symbol of Great Hritain's industrsal and railwiiy engl￿¢tring heritage and excellence. It operates for the benefit of both V￿Ent and future generations. In this Lontext it should be Seen as a working museum. For a dwindlillg number this keeps alive fond memories of the past whilst tor the newer gencrations it will be seen as a living history and, in this we encourage aDd provide the opportulklty to obtain and practice new skills. The Society is proud to encourage 8nd promote public int¢re51 in Tailways gen¢rally &s well as the preservation of steam locomotives. railway mJ¢hinery and equipment of histoi'acal inter¢sl. As a result of the un-expected 3Dd ddditional work to the locomotive boiler followin¥ from its e&rly withdrawal from Se￿iCe in July 2022, no n)ainline r&iltours, oi. otheA' trips have been possible during this last fiscal year. The Ios8 of all plaI￿ed railtovrs for 2023 has had a major impact upon r¢venue generation. IIowevcr, discussion￿ with our insurers ar¢ ita hand and it is ¢nvisagcd that recovery of SOTne, if not all. the ¢05ts requir¢d for the boiler ovei'haul will be fortli¢ornin& but not until the next fiscal year. Turning to our educational activity the past year has been one of consolidation. due, not only to the none. availabiliry of the locomotive for public display on railtours or visits lo heritage raiiw&y5, but also the identifying and appointment uf a Dew Education Co-ordinator. As & result, only one fomal pr¢sentation on the opcration of Clan Line was made, that being lo the Mid-Honls Railway (Szirbilun GF'oup). 'fhat gaid, the newly appi)inted co-ordinator ha5 mde noteworthy progre%8 since tim¢ in post, wilh it)itial approaches to schools and other STEM (Sci¢llce. Te¢bnology, Engineering & Mathy) relevant organisalion4 and engine¢rillg institutions. Work by the Archivist has ￿￿tI￿lled with the cataloguing 2nd safe storage of the Society's div¢r5e collcction of docuMe￿Ls, ￿OtographS and artifacts relating to Clan Lin¢ and the history of the Society. all of which are availablc to view by appoillttnent for educational and a¢ademic research. Thi5 work will contiThue in Coming yeat% as fvnds pemiit. The Society's activity on th¢ social media outlets of Facebook, Instsgram and Twitter continued to expand durang the year. as did that of the Society website. Clirtlrmoii's oyervitw To say that 2023 has been OnE of the most stress￿] and ¢hallenging since th¢ last overhaul of the locomotive at Crewe in 2015 (even ivhen one ¢onsideis the COVID years) is very much an understatement! After our initial hope of a coinpletion of the repairs to the Themi¢ Syphons at the end of 2022 we entered the year with the realisation that the work would be protra¢ted, not througj the fault of our Contractors but 2 combuiation or issues arising with th¢ surrounding platework. Following a fiill review and scoping of the work required the Council m&de the de¢isiDt) to bring foiivard the full boiler overhaul originally scheduled for 2027. The decision wos not taken lightly as 1¢ meant a fuither non-operational period, and hence a potential loss of income. Howevei., the repair and replacement work to th¢ Therniic Syphons, f￿¢boX platework and repla¢ement of stays, along with a Yevised and enhanced water Iregtment itgime, is the most cost-effective de¢ision to ensure ¢ontinued operation once back in s¢rvkce. On a positive note, the Colincil are extt'emely grat¢ful, not only to those working paty members who liave given their time assisting with the ot)-going boiler repairs {requiring travel to, and staying in Deyon). ov work on the tender and sllpport coach. but to those membei's who have made additional financial contr2butions. some of which have been extremely genen)us given the ¢UiTent economic cltmate. Fuithermore, the 'Firebox Appeal, to aid the boiler r£pairs. also saw a positive response. Members of the Couneil of Mgnagement Attendance At me¢ti R F Gretton ° D Easso C M Elli¢k SACMartin l Millward D Mowat, G Williams J Cuinmins D Shepherd 7110 9110 ioiio 8110 8110 8110 8110 8110 8110 In a¢cordan¢¢ with the Artscles of A550ciatian orte third of the memb¢TS retire at the 2024 Annual General Meeting. These are asterisked are r¢tii'ing. D Mowat is offering himself for re-electaon. ludependent Examiners Following membership agreement at the 50tb ACJM held on 15 July 2023 the Council appointed Blain Pritchard Limited as Independent Examiners lo the Company. Both parties agr¢ed that the appollJtrneRt and the fee would be reviewed aft¢r il further year. D Shepherd Secretary May 2024 MERCHANT NAVY LOCOMofivE PRES VATION SOCIETY LIMITED Acom an limlted b llarantee ILaVi no share ea ital statement of the Couneit of Man8 emen es onslbilities CO￿panY and charity law Tequir¢5 thc Council of Mauag6ment, who also act as tnLStees for the ¢haritable activities of the ¢ompany> to prepare financial statements for each r]nancial y&ar vthirh give & tru¢ alld fau view of the state of affairs of the company aTEd of the suTrlus or deficit of th¢ coMpa￿Y for tILat period. In preparing those fLuancial Statements, the CouDGiI of Manage]nent are required Éo. seled suitable accouryting policies and tben apply them congistenuy. make judgements estimtstes tbat 8rt reasonable and pnthnt. stat¢ whether appli¢abl¢ Jccowiting standards have been followed, subjcct to any n)aterial depaTNres disclosed and cxplaintsd in the financia] statements. prepare the financial ststements on the going cott¢ern basis unless it 1$ Inappropriate 10 presum¢ tIMtth¢ company will wntitiue in blls1ne￿. The Co￿1¢11 of MaDagcment responsible br keeping proper accounting records whioh disclose with reasonable accuracy al atty time the finaD¢ial position of thc company and to enable them to ensure tbe fman¢ial statements co]Dply with the Companies Act 2(H)6. They are aLs0 responsibl¢ for safcguwdiThg the Etssets of the company alld hente for taking re&gonable steps for the pr¢velltion Ènd deteGtion of fraud and other irregularities. Independent Examinerls Report to the trustees of the Merchant Navy LocomotAve Preservation Society Limited I on thc accounts of tlLe Navy Lo¢omotive Pr¢serYatiotL Sociw Limskd for tbeyw 3 1st De¢ember 2023. whi¢h set on pages 6 to I I, Respective responyibilitlÈs of tru5teu and examlner Th¢ Dire¢tor&Trust¢cs reswnsibl¢ forth¢ preparation Of the accoufjts. Th¢ ch8rity'$ Ttru5tees consid¢T that audit Ès wt iequired forthis year under section 145 ofthe Charitits Act 2011 and tlot an inde￿]]dent ex￿nIn￿tiOn is needed, Having been sLtisfied thèi the cheTity ts not SLJbject to an audit under company law ond is eSigibl¢ for ind¢pendcnt ex8min&tion tt is my rcsponsibil%ty to.. examine the accounts (under scction 145 of th¢ 2011 A¢t)' to follow the procedures lhid down in tbe Ge]serol Diwtions givtnby th¢ Charity Commissioners (under 8¢¢t11rt￿ 14515llbl of the 2011 A¢t)' and to 5tat¢wh¢thttT particular motter5 have my attention. B#sls of independ¢nt eximiJ•r 5 report My exatnination cauied aut in a¢cordaThc¢ with thB Gcneral Directions given by the Chdrity Commission. That cxarnKn&tion includes & tcvicw of the account￿￿ r¢cords kept by tb¢ cbarsty and tt comptirison of the acwunts with those rccords. It aL%ts includes considgrin8 ￿n￿S￿al items or disclosures in the awunts 8nd seekitiE explgnations fro￿ you 85 trustccs ¢onrxniDg any such matiers. Th¢ proceduT¢S undertaken dts not provid6 ail the ev5dcnc¢ that would be required in 8Th audi¢ 2nd coJwucntly l (ki Dot cxpress on opinion as to whctlier the account$ pr¢sent a'tru¢ and fail view 8nd thc r¢wt i5 liinilcd to Enatttr5 5¢tout tk statcffl¢nt b¢low. Independ¢llt exarnillBr's st#tement Ill ¢onncctiOn with rny examinatioD. no matter corne to my atteLtioll.' whith gives me rcas)Tthlc c#use to bclievc that in any material ￿S[￿Ct the r4uir¢ments to krtp a¢courLting reGord8 in &ccordaBte with 5386 of the Companics Attt 2006. to PF¢pJre accounts wbich accord with the &ccounting records comply with the aG¢ounting TCqlliMEAts of the Compgnies Act 2006 and witli th¢ methods aod principlcs of tht Siatem¢Dt of Reconjmended Practic¢'. AccoMTrtiTrg and Rey)rting by Clwiti¢s Ir¢vis¢d 2005) have Jjot bE¢n wet. or (2) to whic14 in my opitiion, atlcntion should k drtswn in orthrto ellabltt & propcr utsderstgnding of the accounts to be IEached. L C Stxl FCCA FAIA Blain Pritch8rd Limit¢d Charttred Cortified Accountants 74 College Road M&idstone Kent 15 6SL LOCOMOTIVE RESERVATION SO STATF.MLNf OF FINANCIAL AcfiNryIYES FOR THE PEIUOD ENDED 31st DECEMIIF.R 2023 LIMtTED G¢￿er#I Porpibst Funds Other u￿restriCted EDdowment Funds Funds 2023 Total FMn05 2(b22 Totlll FMDds llyc MING RES DoDatiOttS. gifts and Simil￿ inwming 71.391 187,427 2.749 36.910 71.391 187.427 2,749 36.910 57,695 25,000 422 93,S99 Lzgacics received ]nvestsDenl 5neome Troding ill furtherBncB trf eharstable &divitie5 Ll COMtNGBESOUR 298 477 298,477 BLE RESO CES EXPEND , Sllppoi* Costs Locomotive &rolling 8lockTroiJ)t, & collsumables Tr8nspotl Expenses IDsuranc4 Rent & Sundry ewnditure 208.706 208,706 162.202 26,179 26.179 16,880 Trading A¢tiVItIt$ Lowotivc operotittg ¢xpeD8es I￿81 & w41#1 Production of So¢iety Ma$￿ille "200 Club. prizes & RegistratlD Sales ite￿8 4,130 1,508 4.130 1508 9,821 1,501 1861) 789 {441 44) Oth¢rExpendltur¢ oven￿￿¢8 costs 9,029 10.541 9.029 97 200,873 OTAL RESO ES EXPENI)KD 248 J97 Prtstlt l (L￿$) OD disptssAI of Fix¢d AssEt Profrt I (Lo￿) on reYalw#ti(k￿ of Investment Asset IOD 100 1143) NETINC BEFOIiE MtN oirrGOING SFERS URCES (24,000} 50,181 50,181 TrHnsferbetween Fi]tLds 50,181 P4,000) OMtNGI ALANCES brought forwrlrd Èt 1st J&nu#ry 2023 433077 402,038 7,839 409.877 BALA 315¢ Dectmb¢r 2023 ctyrried forward &t 409 877 452 219 460 058 The notes OTh 8 to l I fom) paft of thes8 financial stateme71ts NA u)c MOllVE fRES RVAT BALANCE SH ET 31stD EMBER 2023 OCIE EDASS L¢comotive J5028 L￿o￿otiVespAT￿S Too15 2quipMenÉ Coach IBFKI- 17096 Cth¢h IBPKI. 34701 2,2QO 2,200 4,￿0 4,000 12J39 12.339 CURRKKfwE Siock Dfmal S￿Ck of 5&1r iterns 6.670 2,596 8i,ot15 io.& 2,552 93,613 16) Inveslmeni-shRte in5ubsi&iary Investment- CAF Fupd Cashat bankund in hand lJ83 1.283 449.339 4￿.439 EDIYO wllbln onc 84mouots filllng due 447.719 397,538 R¢pr¢$¢nied by. co Unrestricted fuith." GctserRI Pu BAlaTKcaS al 151 Jg#u8ry2023 Transfer fr*m Slal¢TRellt of Fithirtcial knliviiie5 402,038 426.038 452.219 402.038 01 Ytslri edfu Balinceasat 1st Ja￿ary2025 Tran5f¢r from (ill ststrmetsttsf Findnck81 AetiviEies 7.839 7,839 7.839 7,839 ThecompHrty is enililed iTr¢xemption from &￿JItUrtdCl s￿110￿ 477 olth¢Comp&nies Ad20[￿ ￿ theyeNr ¢ndrd JlstDecember2023. T￿t mEmbt(s havemi regul￿d ihecDmp8Thyto obtain an auditof its fittanchil 514tements forllKy¢arentsJ 31s1 December 2023 ID aceordanct ivilh SrBiion 476 oftheCoTnpanK5 A¢t2N6. Th¢Councd ofManoge¥neDtathiowl¢dBC ihBir re$kwsibilitiÈs for.. en51111ngtheensuTing Ihe ¢omparyy keeps accouniingrecords i￿lCh tomply with SeL*iong386 387 ofihe C&M￿ni£S A¢t 2006ond bl preparing fin3n¢ial stai•llCnts whloh givealrne8nd flir Yieivoltheswie olaffuiTS of%licw*pany as al tIKeJd ofeach fina￿la1 Ye￿ 115 surplus ordeficii foreach finBnti31 FrinacwrdÈnceiwihthe requiremen¢s ofsettions 394 and 395 O¥kl ¥thirh otlicn¥is¢¢omply iyidi ili¢ r¢4ui1e￿￿￿tS ofthe CompAll*E5 A¢12006 KlaEing tts fiftRn¢LRI ¥tstements. $0 furas ttpplicabie io ihe compaiiy. Tho finaDcial sta￿Ents hav¢ beenp￿pa[ed in ac¢ord8nceiioth th& pyoYi3ions of PArt IS oFth¢ Companie5 Act20D6 r¢latin8 io sitt811 ¢￿￿paRIeS. Approv¢dby ih¢ Council ofMana8¢iiiertl R. Gteitorl ChAitm8 S.A.C. Marti Treasurer The notes pages 8 to I I fonD PRrtofthe5r ￿￿￿(la7 stht¢Ments. MERCHANT NAVY LOCOMOTIVE PRESERVATION SOCIETY LIMITED Notes to the Accounts For the Year ended 31st December 2023 Note l B88is ofpreparatitsn sts of accounting These accounts have been pr¢pared on the l)asis of histori¢ CDSt and accordallGe with,. . AcCount￿g and Reporting by Charities- Statement of RecoD]mttnd#d Prnctic£ (SORF (FRS 102)). - and wiib the Charities Act 2011. Charkge In basis of ac¢ouDtkng There has been no cbange to the accounting poli¢i¢s (valuatiim tules and methoth of accounting) since ljst Changes to prevlou$ aeeounts No char*ges hav¢ been made to ￿oUnts for previous y¢ars. Note 2 Aceollnting pollcies INCOMING RESOURCES Recognition of ineomlng resources These are included in the Statement of Financial Activities (SOFA) when- - the charity bec0￿e$ entitled to the resources; - the trttstees are vartually certain they will receive the Yesources. and - tlken)onctary value C￿ be measured with sllfficient reliability. Incoming resources with related Where incoEning resources have rel&trd expenditure (as with fundr8iSiDg or contraGt txpenditure income) thc in¢omin¥ resources and r6lat¢d expenditL]re are r¢port?d gross in the SOFA. Grants and doThatioRs Grants attd donations ar¢ only included in the SOFA when the charity has unconditional eThtitlement to the resoU￿eS Tyx reclaims dottatlon6 gnd Incoming r¢sources fromlax reclaims are included sn the SOFA at the same time as gifts the gift to which they relate. Contracknal incotDe 2nd performanc¢ related grants This is only included in the SOFA once the rel&ted goods or servi¢es have been delivered. Glfts in klnd Gifts in kind are accounted for at a reuonable estimat¢ of thoir value to tbe cbarity or the amount actually realis¢d. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the dwity. Gifts in kind for use by tbe charity are iticluded in the SOFA as incomllJg resovr¢es when receivable. MERCHANT NAVY LOCOMOTIVE PRESERVATION SOCIETY LIMITED Noles to the Accounts For the Year ended 31st December 2023 Donated 5ervlce5 and fgtlllties Thcsc ar¢ on]y intludcd in incoming re80ur¢e8 (with 8Th equlvaltnÉ amouiit in resou¥c¢s ¢xpend¢dl whcr¢ the IKTJefitto the tharity is reag¢JJa61y qu8ntifi&bl4 me&%urabl¢ ond n]a(eTial. The value placed on these rc80￿r¢es is the ¢stin)ated valut to thc charity of the service or faGility ttccived. Volunteer help The v&lue of arty volunteer help re¢eived is not i￿l￿ded in the account$ but Is d¢sGLibed in thc tn￿t￿9, annual re[￿rt. Ilvestment inco]Rt This is iTJcluded in the accounts reo¢ivablB. lllve5fmemt attd lo$sès Tht5 illcLud¢s any gasn or loss on th¢ spJe of irLvestm¢nls atkd ony ggin or loss Jysulting from rcvaluitjg inv¢5tmcnts to mark¢tvalut at the ¢nd of thc)rar. EXPENDITURE AND LIABILrrIEs LiHbility recognitlon Liabilities aF¢ recogn13¢d as soon as there 15 8 I￿ OT ¢onSt￿rI]Ve obligation committing the charity w pay ￿lt resources. Governa￿¢t to8ts Include c03t5 ofthe pr4)aration ond examination of statutory accounts, th¢ eosts of trust¢¢ Meet￿8S aDd tk cvEt of any legal advice on gDVerrw￿t or conststtltional Gro￿ts wlth performaDee eonditions WheTB the charity giv¢5 a gr￿l with conditions for its payrnent being a sp¢¢ifjc levcl of serviG¢ or output to IK P￿)¥￿ded, such graiits are only recognL5cd in the Sol.-A I￿¢¢ the recipient of the wt has pNJvidcd the specifi¢ 8ervic< or output. Grlnts pgyabk withibut perfom2t)te CO￿01*i￿nS The5¢ we only rccognis¢d in thc accounts wh¢n d commikncnt has been made and Iherc we no conditions to bE relatingto the which rema>n inthc ¢ontrol tsf the chwity. Support eosts Support ￿sts iDclud¢ central ￿nCtionS and have bKn dlo¢ated to octivity ¢OSt categories on a b&8is consistent with the us¢ of resourccs. ¢g ￿loGatingp￿Qperty costs by tioor 8T¢&8. orper cipits, staff costs by the tirnc sp¢nt and dher costs by thctr ￿)ge. ASSETS T&ngiblt fixed Jtssets fDr use by Apart from road vehiGI¢g and ￿Mp￿ttr equipTncnt, all totigibl¢ fixed assets 3re the ¢b&rity ca￿lea in the #ccouuls atthe aggregate cost of acquisltion 3nd any additiotthl costs of pulling them intv 8 usable condition. SubsequBThily ¢xpenditur¢ 00 the maint¢Nance or thc rwewal of PErtE is writt¢D off to thc St&Lcment of Fitwici&l A￿lViti￿ ￿ it is incurred. Spare part8 Are CaLTi¢d at the arbitrary value of £500. No dtpreciotion thcn provi(kd on the$e fixcd osset5. In the opinion of the Couooil of fvlaTLagemcnt, the residual v41ue of thes¢ assets is $vffi¢iently high and th¢ useful economic life suffici¢rntly long that Èny dcpreciatit)n chargB would b¢ immaterial. The inve5tsDent is valued at its rate at th¢ bdance shccl dat< calculatrd usirtg its Bid price. Stocks of sales goLKis and coal are Stated attbc Iow¢T of rA)st and net realisthle volue. Ittv¢stm¢￿tS Stock% MERCHANT NAVY LOCOM(yfIvE PRESERVATION SOCIETY LIMITED Notes to tbe Accounts For the Year ended 31st December 2023 Note 3 APB Ethi¢AI StAn