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2021-03-31-accounts

THE COTSWOLD CANALS TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021

Company number: 01207787 Charity number: 269721

THE COTSWOLD CANALS TRUST

YEAR ENDED 31[st] MARCH 2021

CONTENTS

Page 1-9 Report of the Directors
Page 10-13 Report of the Independent Auditors
Page 14 Statement of Financial Activities
Page 15 Balance Sheet
Page 16 Cash Flow Statement
Page 17-30 Notes to the Financial Statements

THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021

1 INTRODUCTION

The Cotswold Canals Trust Council submits its 46[th] Annual Report to members of the Trust for the year ending 31[st] March 2021, which is also prepared to meet the requirements for a Director’s Report & Accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting for Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and the Republic of Ireland (FRS102).

Please note that figures in brackets refer to the year ended 31[st] March 2020.

2 LEGAL AND ADMINISTRATIVE

3 AIMS AND OBJECTIVES

The objects of the Cotswold Canals Trust as set out in our Memorandum and Articles of Association are:

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

The Trustees confirm that they have referred to the information contained in the Charity Commissioner’s General Guidance on Public Benefit when reviewing the Trust’s objectives, activities and plans.

Full restoration of the Cotswold Canals will be phased dependent upon major funding. The Cotswold Canals Trust will be seizing every opportunity to raise funds to restore sections of the canals not within designated schemes.

4 TRUST COUNCIL

CCT is both a charity and a company limited by guarantee. Trust Council members fulfil the dual roles of Trustees of the charity and Directors of the Limited Company. The following served as Trust Council members during the financial year ended 31[st] March 2021:

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

4.1 Appointment of Trust Council Members

At year end there were 13 members on Trust Council. The maximum number allowed by the Articles of Association is 15.

Additional or replacement members of the Cotswold Canals Trust Council are considered when it is necessary to strengthen the representation of a geographical region of the Cotswold Canals and/or if they have skills and expertise that is otherwise missing.

All candidates are made aware of the duties and responsibilities of the post and are given relevant documentation before final acceptance.

4.2 Appointments to Other Bodies

Jim White and Matthew Lee are Directors of Cotswold Canals Trust (Trading) Limited.

Ken Burgin, is a Director of SVCC and a Director of the Company of Proprietors of the Stroudwater Navigation (CoPSN). Matthew Lee was appointed as CCT’s representative Director to SVCC on 2[nd] April 2020.

Jim White and John Newton are on the Cotswold Canals Connected (CCC) Project Board (with other major partners: Stroud District Council, Gloucestershire County Council, Canal & River Trust and SVCC).

4.3 Trust Council Matters

Trust Council is responsible for governing the charity and directing how it is managed and run. Trust Council also aims to:

To assist in this responsibility, individual trustees/directors champion specific topics and/or functional aspects of the Trust. These aspects include engineering, operations, construction, environment, strategic development, fundraising, health and safety and procurement.

5 MEETINGS

The Council of Management (Trust Council), which manages the business of the Trust, meets monthly except in January and August. An Executive Committee of Trust Council Officers also meets as necessary to conduct urgent business between Council meetings. This committee consists of the Trust Chair, one or both Vice Chairs, and/or the Treasurer and Company Secretary plus others as appropriate.

Directors of the Cotswold Canals Trust (Trading) Limited meet quarterly and are responsible for all trading activities and the staffing of the visitor centres.

The organisation of working groups at the western end (i.e. Phase 1A) continues under the leadership of CCT Directors and Team Leaders. These groups include project management, fundraising, operations, dredging and project commissioning. East end meetings, which includes the Inglesham boat team, are held monthly in Lechlade.

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THE COTSWOLD CANALS TRUST REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

Cotswold Canals Trust representatives attend the following meetings for Cotswold Canals Connected (Phase 1B):

6 STATEMENT OF DIRECTORS’ RESPONSIBILITIES

6.1 Financial statements

Company Law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the surplus or deficit of the Trust for that period. In preparing those financial statements, the Directors are required to:

The Directors are responsible for:

6.2 Identification of major risks

The core work of the Cotswold Canals Trust is undertaken by volunteers, with support from the Trust Administrators.

It is the physical work associated with construction, restoration or reconstruction or maintenance where exposure to risk can be greatest. Health & Safety is an agenda item for every meeting of CCT Council. Method statements and risks assessments are in place for all work carried out by volunteers.

VICE PRESIDENTS

Sir Geoffrey Clifton-Brown MP, Mr. Chris Coburn MBE, Dr. David Drew, Dr. David Fletcher CBE, Professor Mark Horton and the Rt. Hon. Sir Richard Needham continued to hold the office of Vice President. Ms Siobhan Bailey MP was appointed as Vice President on 22[nd] July 2020. The Trust thanks them for their active and encouraging support.

7 MEMBERSHIP

Membership is vital to the success of the restoration as it demonstrates commitment to the project locally, nationally and even internationally.

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

Trust membership at the year end was 7,113 (7,347). This included 606 (604) Joint Life Members and 532 (537) Life Members. Our largest membership class is Families with 3746 (3904) members.

Volunteers at the Visitor Centres at Saul Junction, Bonds Mill and Wallbridge Lock continue to lead CCT’s membership drive with support from our membership secretary.

8 DAY TO DAY MANAGEMENT AND ADMINISTRATION

The Cotswold Canals Trust employs one full-time administrator, Lisa Mant. Additionally we employ two part-time administrators; Aurelia St-Clair (Membership Secretary) and Gemma Barton – Foreman (Trading Company Administrator). Diana Edwards our previous Membership Secretary retired in June 2020.

We employ a full time Fundraiser- Ambassador (Aimee Malcolm) who is funded by CCC to work on 1b fundraising.

Ken Burgin was employed as Chief Executive on a part-time basis (20 hours per week) until 30[th] November 2020. This was a role that Ken had held since 2008 and which was made redundant during the year. We are pleased to report that since ceasing to have an employed role with the Trust Ken has been elected as a Trustee

Matthew Lee is Honorary Treasurer and Lisa Mant Company Secretary.

9 RESERVES POLICY AND GOING CONCERN

The Reserves of a charity are that part of a charity's income funds that are freely available for its general purposes. This excludes Restricted Funds (funds donated for a specific purpose). Designated Funds are funds which the Trust Council has earmarked for projects. In addition, The Trust is aware of the need to:

  1. Secure the viability of the Trust beyond the immediate future

  2. Absorb any setbacks and to take advantage of change and opportunities

The Balance Sheet of CCT on 31st March 2021 shows Total Funds of £803,159 (£3,230,078) of which £270,833 (£2,769,832) is Restricted.

This year, the Trust recorded a surplus before transfers in the general fund of £65,631.

The Trust’s Reserves are thus £532,326 (£460,246) which comprises:

The Trust’s Annual Budget incorporates planned expenditure matched by forecast income in respect of the day-to-day activities.

As a result of the impact of Covid 19 the trustees have reconsidered the level of funds needed to cover the risk of unforeseen emergency or other unexpected need for funds in connection with its maintenance and construction activities and to cover the risk of unforeseen administrative and operational costs and fund short-term deficits in the annual budget. Historically this was set at £40,000 but was increased in the year to £100,000.

Any general funds more than the £100,000 contingency may, from time to time, be designated to take account of unforeseen opportunities. The Trust Council will review its

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021

(continued)

Contingency Fund Policy once per year to ensure that funds are maintained at the agreed level.

At the outset of the pandemic we instigated a process of strict segregation of restricted and general funds. A monthly cashflow is prepared and monitored very closely to ensure that the Trust has sufficient liquidity to continue its work. The Trust Council Officers have considered regularly the ongoing financial position and have concluded that the Trust continues to be in good financial shape and can be considered to be a going concern. Since the year end our trading activities have resumed and have exceeded our expectations and forecasts.

10 GRANTS, LEGACIES AND DONATIONS

CCT wishes to record thanks to all those organisations, members and individuals that have supported all the canal restoration activities this past year through grants, legacies and donations.

These include:

Due to the cessation of all trading activities in March 2020 we launched a “Stay Afloat” appeal and we would like to thank all those members who contributed so generously. After gift aid and other one off donations this raised £80,434 which has enabled us to enter the new financial year in good financial shape.

Special thanks to all those that have provided support of the Cotswold Canals Connected Phase 1B Restoration Appeal during the year amounting to £46,234. This includes regular donations, the Trow appeal and support from many organisations.

We are fortunate that both our Western and Eastern depots are leased to us free of charge by Gloucestershire County Council and Farmcare respectively. During the year we have been granted a lease over a field adjacent to the Western Depot by Mrs Prentice which is also free.

Our administration offices at Bell House are generously supported by our landlord Luciano Magalotti who has discounted our rent by £10,000 a year for several years.

11 THE TRUST’S ROLE WITHIN THE RESTORATION PARTNERSHIP

11.1 The Cotswold Canals Partnership Board – CCPB

The Cotswold Canals Partnership was formed in 2001 with the vision to restore the Cotswold Canals to full navigation in the interests of conservation, biodiversity and local quality of life, and to use the restoration as a catalyst for wider social, economic and environmental regeneration in areas neighbouring the canals.

The partnership comprises CCT and direct partners (e.g. Stroud Valleys Canal Company, Stroud District Council), Environment Agency, Canal & River Trust and Inland Waterways

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

Association, along with all the riparian local authorities and many other organisations (17 in total).

CCT continued to play a key role in the Partnership by providing updates on restoration progress across all phases and opportunities of interest to the stakeholders and representatives attended the main Cotswold Canals Partnership Board meetings which were chaired by Stroud District Council.

11.2 Stroud District Council – SDC

Stroud District Council has invested significantly in canal restoration over many years, including establishing their offices in the Industrial Heritage Conservation Area at Ebley Mill adjacent to the once infilled section of the Stroudwater Navigation. They were the lead partner in the Phase 1A project and continue to play a key role in the redevelopment of Brimscombe Port and its connection to the rest of the Phase 1A length.

Stroud District Council is the co-lead (with CCT) of the Cotswold Canals Connected (Phase 1B) NLHF Stage 2 (Delivery) project. This team comprises the Canal Project Manager and Volunteer Coordinators with administrative, communications and document production support.

Stroud District Council volunteer teams, led by Jon Pontefract and Ian Moody, are responsible for maintaining the restored sections of Phase 1A from Wallbridge Lower Lock to Bourne Lock.

11.3 Stroud Valleys Canal Company – SVCC

Stroud Valleys Canal Company (SVCC) is the charity that has responsibility for the canal, either as a freehold owner in the case of the Thames & Severn Canal under its jurisdiction or, under its 999 year lease from the Company of Proprietors of the Stroudwater Navigation (CoPSN) in the case of the Stroudwater Navigation.

Maintenance and improvement work is also managed by the SVCC working with CCT volunteers (based at CCT’s western depot) who have capability in many areas including: the construction of landing stages, dredging, maintenance on land and in the water (boats team) and repairs to canal infrastructure and equipment (e.g. dredger refurbishment). SVCC purchases and owns major items of plant and equipment for use by the volunteer teams.

11.4 Inland Waterways Association - IWA

CCT continues to be the lead partner in Phases 2 and 3 of the Cotswold Canals restoration projects (Brimscombe to Inglesham) and works closely with the IWA and the Waterway Recovery Group (WRG).

CCT has hosted IWA/WRG weekend and summer, week-long restoration camps in various locations along the length of the restoration but these were limited this year due to Covid restrictions.

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

12 COTSWOLD CANALS CONNECTED (PHASE 1B)

We are delighted to report that the project’s bid to NHLF for 1B funding was successful and a grant of £8.9m, matched by contributions from our partners as well as other donors and ourselves, was confirmed in October 2020.

Since the grant was announced work has started on the replacement of the railway bridge at The Ocean, which is scheduled for completion in early 2022, as well as the restoration of Blunder and Newtown locks. It is anticipated that the 1B project to connect Stroud with the national river and canal network will be completed within the next 4 years. Progress has been frustrated to some extent by Covid restrictions.

During the year despite some minor delays as a result of Covid 19 the A38 crossing aspect of the 1B project was completed. The works were undertaken on our behalf by Gloucestershire County Council.

12.1 The Project management team

The CCC Development Stage Management Team was formed of volunteers and paid professionals representing the following organisations:

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THE COTSWOLD CANALS TRUST

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31[st] March 2021 (continued)

13 ANNUAL REVIEW

A comprehensive review of all aspects of our activities is set out in our Annual Review. This is available to all members in hard copy form and is also published on our website.

The review is a celebration of everything that our volunteers have achieved in what, once again has been a very important year for the Trust.

14 AUDITORS

Burton Sweet Limited of Bristol were appointed as Auditors to the Trust in 2021.

15. SUMMARY

This report demonstrates that the Trust is successfully delivering on the aims and objectives set out in paragraph 3.

This year started in April 2020 with a cessation of almost all activities due to the global pandemic. We are pleased to report that due to the successful “Stay Afloat” campaign, Government grants and restricted expenditure we have managed to maintain our reserves for what will prove to be a busy year. Despite the restrictions we managed to continue some book sales and a large level of log sales which boosted the results of our trading subsidiary and helped avoid a deficit for the year. In addition we have commenced the redevelopment of our Western Depot, created a new bookshop from an old joinery factory, and continued to maintain the restored sections of the canal.

The 1B project is now a reality and our attentions are now turning to phase 2 under the direction of John Allan and Ken Burgin.

Since the year end our commercial revenues have recovered strongly however the break has led to some volunteers deciding to retire and efforts are ongoing to swell the volunteer numbers needed in all our activities.

This Report was approved by Trust Council on 6 October 2021

Jim White Chair

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THE COTSWOLD CANALS TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COTSWOLD CANALS TRUST FOR THE YEAR ENDED 31[st] March 2021

Opinion

We have audited the financial statements of The Cotswold Canals Trust (the “Charity”) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state in them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion, the financial statements:

Basis for opinion

We conducted out audit in accordance with international Standards in Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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THE COTSWOLD CANALS TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COTSWOLD CANALS TRUST FOR THE YEAR ENDED 31[st] March 2021

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report (incorporating the director’s report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to

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THE COTSWOLD CANALS TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COTSWOLD CANALS TRUST FOR THE YEAR ENDED 31[st] March 2021

enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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THE COTSWOLD CANALS TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COTSWOLD CANALS TRUST FOR THE YEAR ENDED 31[st] March 2021

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/apb/scope/private.cfm This description forms part of our auditor’s report.

Joshua Kingston BSc, ACA (Senior Statutory Auditor)

For and on behalf of Burton Sweet Limited and Statutory Auditor

The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 6 October 2021

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THE COTSWOLD CANALS TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations, grants and legacies
2
Other trading activities
3
Investments
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net income/(expenditure)
10
Transfers between funds
Net movement in funds
Total funds at start of year
20
Total funds at end of year
20		 Unrestricted
Funds
£
293,303
75,569
29,162
398,034
16,421
331,985
348,406
49,628
22,452
72,080
460,246
532,326		 Restricted
Funds
£
306,848
5,530
-
312,378
-
2,788,925
2,788,925
(2,476,547)
(22,452)
(2,498,999)
2,769,832
270,833		 Total Funds
2021
£
600,151
81,099
29,162
710,412
16,421
3,120,910
3,137,331
(2,426,919)
-
(2,426,919)
3,230,078
803,159		 Total Funds
2020
£
Restated
4,405,627
100,360
54,080
4,560,067
23,469
2,099,713
2,123,182
2,436,885
-
2,436,885
793,193
3,230,078

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 17 to 30 form part of these financial statements See note 13 for fund-accounting comparative figures

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THE COTSWOLD CANALS TRUST

BALANCE SHEET

----- Start of picture text -----
AS AT 31 MARCH 2021 Company number: 01207787
2021 2020
Note £ £
Fixed assets
Tangible assets 14 178,095 177,753
Investments 15 1 1
178,096 177,754
Current assets
Stock - 1,000
Debtors 16 96,065 97,638
Cash at bank and in hand 545,068 4,400,077
641,133 4,498,715
Liabilities
Creditors : amounts falling
due within one year 17 (16,070) (1,446,391)
Net current assets 625,063 3,052,324
Net assets 803,159 3,230,078
FUNDS
Unrestricted funds
General funds 21 180,461 175,521
Designated funds 21 351,865 284,725
Restricted funds 21 270,833 2,769,832
Total funds 803,159 3,230,078
----- End of picture text -----

These financial statements have been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.

These financial statements were approved by the Trustees on 6 October 2021 and are signed on their behalf by:

Jim White Chair

The notes on pages 17 to 30 form part of these financial statements

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THE COTSWOLD CANALS TRUST

CASH FLOW STATEMENT

YEAR ENDED 31 MARCH 2021

Note
Net cash inflow from operating activities
18
Non-operational cash flows:
Investing activities
Payments for tangible fixed assets
Proceeds from sales of tangible fixed assets
Investment income
Net cash inflow/(outflow) for the year
19		 2021
£
(3,852,242)
(33,404)
1,475
29,162
(2,767)
(3,855,009)		 2020
£
3,814,025
(144,782)
-
54,080
(90,702)
3,723,323

Cashflow Restrictions

Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice, this restriction has not had any effect on cash flows for the year.

The notes on pages 17 to 30 form part of these financial statements

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THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1 Accounting policies

Accounting convention

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, and in accordance with the Charities Act 2011, the Financial Reporting Standard 102 (FRS102) and the requirements of the Charities Statement of Recommended Practice based thereon.

The charity is a public benefit entity as defined under FRS102. The Trustees consider that there are no material uncertainties affecting the ability of the charity to continue as a going concern, please see Trustees Report for further details.

Consolidation

The charity has a wholly owned trading subsidiary company, Cotswold Canals Trust (Trading) Limited and an interest in an associated company, Stroud Valleys Canals Company. The charity has chosen not to prepare consolidated accounts on the basis that aggregate group income does not exceed the relevant threshold.

Income

Income from donations is included in income when these are receivable, except as follows:

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;

II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Legacies are included on a receivable basis where charity is entitled to the income, it can be measured reliably and receipt is probable. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is not included in income but is treated as a contingent asset and disclosed if material.

Investment income is included on a receivable basis.

Donations in kind comprise donated services where the costs are measurable and the services would otherwise have to be paid for to maintain operational effectiveness.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Raising funds

Raising funds expenditure include those costs incurred in seeking voluntary contributions, costs of goods sold and other costs which include the costs of running and participating in fundraising events and collections and cost of goods purchased for resale.

Charitable Activities

Grants awarded are allocated to charitable activities.

Grants awarded are treated as expenditure and a liability in the accounts as soon as they become legal or constructive obligations. In the case of multi-year grant awards, the funding for all years is immediately recognised unless there are conditions which need to be met by the recipient to enable the release of subsequent years’ funding.

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THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

Allocation and apportionment costs

Certain expenditure is directly attributable to specific activities and this has been included in those cost categories. Other costs, which are attributable to more than one category, are apportioned across cost categories on the basis of an assessment of workload carried out from time to time.

Overhead support costs have been allocated between fundraising and publicity costs, fundraising trading and charitable activities. The apportionment has been allocated on the basis of usage and is analysed in note 8.

Pension costs and other post-retirement benefits

The charity contributes to defined contribution pension schemes. Contributions payable to the charity's pension schemes are charged to the Statement of Financial Activities in the period to which they relate.

Tangible fixed assets

Fixed assets are held at cost less accumulated depreciation. Assets costing less than £500 are not capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated ultimate residual value, over the useful life of that asset as follows:

Freehold land - not depreciated Plant and Machinery - 25% straight line Office Equipment - 33% straight line Boats - 10% straight line

Fixed asset investments

Investments are included at market value at 31 March. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

Stock

Stocks are valued at the lower of cost and net realisable value. Donated stock items are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds form part of unrestricted funds and have been identified as being for particular purposes by the Trustees. They are not restricted and can be transferred to general funds at any time at the discretion of the Trustees.

Further explanation of the nature and purpose of each fund is included in note of the financial statements.

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THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

2 Income from: Donations, grants and legacies

Grants and donations
Donations in Kind
Legacies
Furlough grants
Subscriptions		 Unrestricted
Funds
£
176,060
20,000
18,922
20,101
58,220
293,303		 Restricted
Funds
£
255,600
-
51,248
-
-
306,848		 Total Funds
2021
£
431,660
20,000
70,170
20,101
58,220
600,151

The charity has recognised a Donation in Kind for £20,000 this year and prior year for the use of premises rent free.

Prior year comparative

Grants and donations
Donations in Kind
Legacies
Subscriptions		 Unrestricted
Funds
£
Restated
96,103
20,000
86,223
60,700
263,026		 Restricted
Funds
£
4,138,601
-
4,000
-
4,142,601		 Total Funds
2020
£
Restated
4,234,704
20,000
90,223
60,700
4,405,627

3 Income from: Other trading activities

Staff recharges
Advertising, talks and events
Lottery income
Other income		 Unrestricted
Funds
£
51,745
7,554
12,099
4,171
75,569		 Restricted
Funds
£
-
-
-
5,530
5,530		 Total Funds
2021
£
51,745
7,554
12,099
9,701
81,099		 Total Funds
2020
£
67,325
9,183
11,235
12,617
100,360

All income from other trading activities in the prior year was unrestricted.

19

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

4 Income from: Investments

Dividends
Interest received		 Unrestricted
Funds
£
27,959
1,203
29,162		 Restricted
Funds
£
-
-
-		 Total Funds
2021
£
27,959
1,203
29,162		 Total Funds
2020
£
29,564
24,516
54,080

All income from investments in the prior year was unrestricted.

5 Expenditure on: Raising funds

Advertising & promotions
Prizes and costs
Event costs
Other costs		 Unrestricted
Funds
£
11,656
4,800
(35)
-
16,421		 Restricted
Funds
£
-
-
-
-
-		 Total Funds
2021
£
11,656
4,800
(35)
-
16,421		 Total Funds
2020
£
18,324
4,580
535
30
23,469

All expenditure on raising funds in the prior year was unrestricted.

6 Expenditure on: Charitable activities

Phase 1B
A38 Project
Weymoor and Eisey
Grants to SVCC
Restoration and maintenance		 Direct
Costs
£
8,816
-
-
-
69,104
77,920		 Grant funding
of activities
(Note 7)
£
200,000
2,577,196
-
43,550
-
2,820,746		 Support
Costs
(Note 8)
£
51,745
-
-
-
170,499
222,244		 Total Funds
2021
£
260,561
2,577,196
-
43,550
239,603
3,120,910		 Total Funds
2020
Restated
£
302,657
1,422,804
35,524
36,000
302,728
2,099,713

20

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

7 Analysis of grants

The total grants awarded to institutions during the year was as follows:

Gloucestershire County Council
Stroud Valleys Canals Company (one-off grants)
Stroud Valleys Canals Company (regular payments)
Total grants made in the year
Cotswold Canals Connected		 2021
£
2,577,196
20,250
23,300
200,000
2,820,746		 2020
£
1,422,804
12,800
36,000
302,700
1,774,304

8 Support costs

Support costs, included in notes 5 & 6, are as follows:

Salaries and wages
Vehicle expenses
Light and heat
Training, health and safety
Office rent and rates
Building maintenance
Telephone
Insurance
Travelling expenses
Office costs
Legal and professional
Bank charges
Governance costs
(Note 9)		 Total
2021
£
136,472
5,374
5,319
2,468
36,027
5,047
349
11,797
-
6,987
3,017
207
9,180
222,244		 Total
2020
£
Restated
105,264
10,137
5,867
3,512
36,539
4,582
1,239
14,666
1,820
7,713
1,349
1,072
8,160
201,920

All support costs in the current and prior year have been allocated to charitable activities.

21

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

9 Governance costs

----- Start of picture text -----
|||| |---|---|---| |Total Funds|Total Funds| |2021|2020| |£|£| |Auditor's fees - for audit services|6,300|6,625| |- for other services|2,735|1,198| |AGM expenses|145|337| |9,180|8,160|

----- End of picture text -----

10 Net income/(expenditure) for the year

This is stated after charging:

----- Start of picture text -----
||||| |---|---|---|---| |2021|2020| |£|£| |Auditor's remuneration|- for audit services|6,300|6,625| |- for other services|2,735|1,198| |Trustees' travel, meeting and training expenses|145|337| |Depreciation|31,587|24,603|

----- End of picture text -----

During the year no trustees have been reimbursed for their out of pocket travel expenses (2020: Nil).

Aggregate donations from Trustees, key management personnel, and other related parties was £Nil (2020: £Nil).

11 Staff costs and numbers

The aggregate payroll costs were:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Wages & salaries|127,390|123,627| |Social security costs|6,558|7,148| |Pension contributions|2,524|2,489| |136,472|133,264|

----- End of picture text -----

No employee received emoluments of more than £60,000.

The average number of employees during the year was 5 (2020: 6), calculated on the basis of average headcount. The total employment benefits received by key management personnel including employer national insurance and employer pension were £21,536 (2020: £Nil).

22

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

12 Taxation

The charity is exempt from corporation tax on its charitable activities.

13 Statement of Financial Activities comparative figures

For the year ended 31 March 2020
Income from:
Donations, grants and legacies
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income/(expenditure) for the year
and net movement in funds
Total funds at start of year
Total funds at end of year		 Unrestricted
Funds
£
Restated
263,026
100,360
54,080
417,466
23,469
319,470
342,939
385,719
460,246
74,527		 Restricted
Funds
£
Restated
4,142,601
-
-
4,142,601
-
1,780,243
1,780,243
407,474
2,769,832
2,362,358		 Total Funds
2020
£
Restated
4,405,627
100,360
54,080
4,560,067
23,469
2,099,713
2,123,182
793,193
3,230,078
2,436,885

23

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

14 Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
15 Investments
Subsidiary
Investment in subsidiary		 Freehold
Land
32,586
-
-
32,586
230
-
-
230
32,356
32,356		 Plant and
Machinery
£
160,860
28,201
(2,950)
186,111
140,202
16,334
(1,475)
155,061
31,050
20,658		 Office
Equipment
£
19,145
5,203
-
24,348
19,056
1,403
-
20,459
3,889
89		 Boats
£
212,982
-
-
212,982
88,332
13,850
-
102,182
110,800
124,650
2021
£
1		 Total
£
425,573
33,404
(2,950)
456,027
247,820
31,587
(1,475)
277,932
178,095
177,753
2020
£
1

The Cotswold Canals Trust owns 100% of the share capital of a subsidiary trading company, Cotswold Canals Trust (Trading) Limited. The subsidiary pays all of its profits to the Trust by deed of covenant.

Associate

The Cotswold Canals Trust is deemed to have an interest in an associate, Stroud Valleys Canals Company, a charitable company limited by guarantee (company no. 06860375; charity no. 1130051), by virtue of its 25% membership and power to participate in financial and operating policy decisions.

24

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

16 Debtors
Trade debtors
Amounts owed by group and associated undertakings
Prepayments
Other debtors
17 Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals		 2021
£
21,898
29,374
12,688
32,105
96,065
2021
£
5,727
383
9,960
16,070		 2020
£
20,296
26,706
11,807
38,829
97,638
2020
£
8,548
564
1,437,279
1,446,391

18 Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Investment income
Depreciation
Increase in creditors: current liabilities
Decrease / (increase) in debtors
(Increase) / decrease in stock
Net cash (outflow)/inflow from operating activities
19 Analysis of changes in cash during the year
Note
Cash at bank and in hand
Cash at bank and in hand		 2021
£
(2,426,919)
(29,162)
31,587
(1,430,321)
1,573
1,000
(3,852,242)
2021
£
545,068
2020
£
4,400,077		 2020
£
4,400,077
2019
£
676,754		 2020
£
2,436,885
(54,080)
24,603
1,428,599
(21,982)
-
3,814,025
Change
£
(3,855,009)
Change
£
3,723,323

25

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

20 Movement in funds

For the year ended 31 March 2021

At 1 Apr
2020
£
Restricted funds
Whitminster Lock
71,888
Section 106 funding - Bonds Mill
25,000
Inglesham Lock
2,810
Fencing at Tunnel House
1,719
Phase 1B - restoration fund
40,604
New trip boat
4,679
Footpath Signage
3,134
Haddon Donation - CRM
-
Landing Stages
1,868
Stace Family
4,000
Entrust
32,934
Nineveh Trust
4,000
Highways England
2,577,196
2,769,832
Unrestricted funds
Designated funds:
Tangible fixed assets
177,753
General Reserve fund
40,000
Restoration Fund
16,972
Peter Snelson Legacy
50,000
Total designated funds
284,725
General funds
175,521
Total funds
3,230,078		 Income
£
-
-
-
-
296,232
1,146
-
15,000
-
-
-
-
-
312,378
-
-
68,100
1,500
69,600
328,434
710,412		 Expenditure
£
-
-
-
-
(208,817)
(119)
-
(28)
-
-
(2,765)
-
(2,577,196)
(2,788,925)
(33,061)
-
(24,547)
(27,995)
(85,603)
(262,803)
(3,137,331)		 Transfers
£
-
-
-
-
5,002
-
(3,134)
(4,512)
(1,868)
-
(17,940)
-
-
(22,452)
33,403
60,000
-
(10,260)
83,143
(60,691)
-		 At 31 Mar
2021
£
71,888
25,000
2,810
1,719
133,021
5,706
-
10,460
-
4,000
12,229
4,000
-
270,833
178,095
100,000
60,525
13,245
351,865
180,461
803,159

26

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

20 Movement in funds (continued)

For the year ended 31 March 2020

At 1 Apr
2019
£
Restricted funds
Whitminster Lock
71,888
Section 106 funding - Bonds Mill
25,000
Inglesham Lock
2,810
Fencing at Tunnel House
1,719
Phase 1B - restoration fund
187,800
Mud barges
368
New trip boat
106,843
Footpath Signage
3,220
Notgrove Trust
1,958
Landing Stages
1,868
Stace Family - Eisey Lock
4,000
Entrust
-
Nineveh Trust
-
Highways England
-
Weymoor
-
407,474
Unrestricted funds
Tangible fixed assets
57,573
General Reserve fund
40,000
Restoration Fund
136,648
Future projects fund
8,585
Engineers fund
10,100
Peter Snelson Legacy
-
CHK
-
252,906
General Funds
132,813
Total funds
793,193		 Income
£
-
-
-
-
83,461
-
4,200
-
-
-
-
29,940
4,000
4,000,000
21,000
4,142,601
-
-
-
336
5,000
50,000
50,000
105,336
312,128
4,560,065		 Expenditure
£
-
-
-
-
(330,657)
(368)
(2,070)
(86)
(308)
-
-
-
-
(1,422,804)
(35,524)
(1,791,817)
(24,604)
-
153
(14,226)
(10,600)
-
(12,800)
(62,077)
(269,286)
(2,123,180)		 Transfers
£
-
-
-
-
100,000
-
(104,294)
-
(1,650)
-
-
2,994
-
-
14,524
11,574
144,784
-
(119,829)
5,305
(4,500)
(37,200)
(11,440)
(134)
-		 At 31 Mar
2020
£
Restated
71,888
25,000
2,810
1,719
40,604
-
4,679
3,134
-
1,868
4,000
32,934
4,000
2,577,196
-
2,769,832
177,753
40,000
16,972
-
-
50,000
-
284,725
175,521
3,230,078

27

THE COTSWOLD CANALS TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

20 Movement in funds (continued)

Restricted funds

Whitminster Lock - funding for the restoration of Whitminster Lock. Section 106 funding - Bonds Mill - funding for the restoration of Bond Mills. Inglesham Lock - funding for the restoration of Inglesham Lock. Fencing at Tunnel House - funding for the fencing at Tunnel House. Phase 1B - restoration fund - funding for the Phase 1B restoration project. Mud barges - funding for the acquisition and maintenance of Mud barges. New trip boat - funding to acquire a new electric trip boat. Footpath signage - funding to improve signage on footpaths. Notgrove Trust - funding for the acquisition of fixed assets. Landing stages - funding for the restoration of landing stages. Stace Family - funding for the restoration work for 'Phase 2'. Entrust - funding for the acquisition of a telehandler. Nineveh Trust - funding for environmental work relating to Phase 1B. Highways England - funding for the A38 project. Weymoor - funding for the Weymoor bridge restoration project. Haddon Donation - CRM - funding for a membership and CRM system to be used by the Trust.

Designated funds

Tangible fixed assets - the designation of reserves that are held within fixed assets. General reserve fund - relates to general reserves, designated as a buffer for future use. Restoration fund - funds held for restoration projects, generally. Future projects fund - funds held for 1A restoration projects; no longer in use. Engineers fund - funds designated for the purchase of equipment. Peter Snelson Legacy - an unrestricted legacy received from a long-time volunteer, to be spent on the refurbishment of the western depot.

CHK - funds received from CHK, designated to be spent on a grant for a tractor to SVCC, and the balance towards the electric trip boat.

28

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

21 Analysis of net assets between funds

As at 31 March 2021
Tangible fixed assets
Other net assets
As at 31 March 2020
Tangible fixed assets
Other net assets		 Unrestricted Unrestricted
Restricted
Designated
General
Total
Funds
Funds
Funds
£
£
£
£
-
178,095
-
178,095
270,833
173,770
180,461
625,064
270,833
351,865
180,461
803,159
Unrestricted Unrestricted
Restricted
Designated
General
Total
Funds
Funds
Funds
£
£
£
£
-
177,753
-
177,753
2,769,832
106,972
175,521
3,052,325
2,769,832
284,725
175,521
3,230,078

22 Operating lease commitments

At 31 March 2021 the charity had total future minimum lease payments under non-cancellable operating leases as set out below:

Within one year
Between two and five years		 2021
£
13,470
41,436
54,906		 2020
£
13,470
53,520
66,990

23 Related party transactions

There are no transactions with trustees or other related parties other than those disclosed as required by the SORP elsewhere in the financial statements.

The Cotswold Canals Trust is deemed to have an interest in an associate, Stroud Valleys Canals Company (company no. 06860375; charity no. 1130051), as disclosed in note 15. During the year, grants were paid to Stroud Valleys Canals Company totalling £43,550 (2020: £48,600). No amounts were owed between the entities at 31 March 2021 (2020: £Nil).

29

THE COTSWOLD CANALS TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

24 Comparative Figures

The prior year accounts filed at Charity Commission were consolidated and this year charity a only set of accounts have been prepared, as such the comparative information in these financial statements relate to charity accounts only. Please see the subsidiary company's accounts and the associate charitable company at Charities Commission for comparatives.

25 Prior year restatement

This year's accounts include a prior year adjustment in regards to the recognition of Donation in Kind of £20,000 for the use of premises rent free.

30