## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM**
## **Financial Statements Year ended 31 December 2021**
**Registered Charity Number: 0273829**
## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM**
## **Financial Statements Year ended 31 December 2021**
## **INDEPENDENT EXAMINER’S REPORT TO THE COUNCIL OF FRIENDS OF THE NATIONAL RAILWAY MUSEUM**
I report on the accounts for the year ended 31 December 2021.
## **Respective responsibilities of trustees and examiner**
The Charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Charities Act) and that an independent examination is required. It is my responsibility to:
- Examine the accounts under Section 145 of The Charities Act,
- To follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act),
- Ascertain that the Charity is not to be subject to an audit, and
- To state whether particular matters have come to my attention.
## **Basis of the independent examiner’s statement**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view”, and the report is limited to those matters set out in the statement below.
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## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021.**
## **INDEPENDENT EXAMINER’S REPORT TO THE COUNCIL OF FRIENDS OF THE NATIONAL RAILWAY MUSEUM (continued)**
## **Independent examiner’s statement**
In connection with my examination, no matter has come to my attention:
- (1)Which gives me reasonable cause to believe that, in any material respect, the requirements:
- To keep accounting records in accordance with Section 130 of The Charities Act.
- To prepare accounts which accord with accounting records and to comply with the accounting requirements of the Charities Act have not been met; or
- (2)To which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## **Robert J Woolley FCCA, CTA**
**Chartered Certified Accountant Crown House York Road Shiptonthorpe York YO43 3PF**
2
## **Dated:**
**FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021 Statement of Accounting Policies**
## **(a) Basis of accounting**
These consolidated accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102 (effective 1 January 2016) and FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities 2015).
A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.
## **(b) Going Concern**
The trustees assess whether the use of going concern is appropriate i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
## **(c) Incoming Resources**
The Charity’s income is received from members’ subscriptions, donations, both general and specific. Other income from sales, legacies, bank interest and small surpluses on meetings and social events organised by the members is recognised at time of receipt. Where proven to meet income recognition, legacies due within twelve months of the accounting period are included as debtors.
Ordinary subscriptions income is applied in the year in which it is due for payment. Life members’ subscriptions are credited to the income and expenditure account in nine equal annual instalments and the unexpended portion is carried forward as deferred income.
3
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **(d) Meetings and social events**
The income from meetings and social events is relatively small and is intended to cover the cost of such events. Income is offset against the relevant costs.
## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021 Statement of Accounting Policies (continued)**
## **(e) Tangible Fixed Assets and depreciation**
Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. This is a change in accounting policy from £500 in previous periods, although as there were no relevant additions in the previous year there is no comparative restatement.
Depreciation, if applicable, is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset on a straightline or reducing balance basis over its expected useful life, as follows:
## **(f)Leased Assets**
Rents applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the lease term.
## **(g) Stock**
Stocks of goods for resale are valued at the lower of cost or net realisable value.
## **(h) Liability to taxation**
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The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity and is therefore included in the relevant costs in the Statement of Financial Activities.
The consolidated report includes any relative corporation tax for the subsidiary trading company.
## **(i) Government Grants**
Government grants relating to revenue expenditure are shown as income in the year of receipt.
## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
**Notes to the Financial Statements for the year ended 31 December 2021**
|**1.** **SUBSCRIPTIONS**|||
|---|---|---|
|||**2021**
**2021**
**2020**
**2020**|
|||**Unrestric**
**ted**
**Restrict**
**ed**
**Unrestricte**
**d**
**Restrict**
**ed**|
|||**Funds**
**Funds**
**Funds**
**Funds**|
|||**£**
**£**
**£**
**£**|
|Subscriptions received in year||25,020
2,036
25,988
5,806|
|Subscriptions paid in advance in
2020||2,290
-
4,000
-|
|Transfer from Life Subscription Fund
(Note 9)||2,655
-
2,741
-|
|||29,965
2,036
32,729
5,806|
|_Less_Subscriptions in advance for
2022 (Note 8)||(2,419)
-
(2,290)
-|
|_Less_Transfer to Life Subscription
Fund (Note 9)||(750)
-
(1,300)
-|
|||26,796
2,036
29,139
5,806|
||||
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|**2. DIRECT CHARITABLE**
**EXPENDITURE**|**2. DIRECT CHARITABLE**
**EXPENDITURE**||
|---|---|---|
|Museum support – General||-
9,128
-
-|
|Museum support – Specifc||100,500
-
102,095
12,506|
|NRM Review||24,559
-
22,536
-|
|||125,059
9,128
124,631
12,506|
|Within specifc museum support there is an amount of £500 relating to designated funds
for the Ripon School Fund. A separate fund has been formed in 2021 for the Ripon
School Fund. There are no comparative fgures.|||
|**3. FUNDRAISING AND PUBLICITY**|||
|Exhibitions, Advertising and
marketing||303
-
807
-|
|||303
-
807
-|
|**4. MANAGEMENT AND ADMINISTRATION**|||
|Equipment expensed||699
-
-
-|
|Secretarial salaries||14,096
1,014
13,469
6,067|
|Printing, postage, stationery and
telephone||4,406
-
2,741
-|
|Insurance, Fees, Etc.||5,649
-
4,099
-|
|Governance costs – (Inc. Independent
examiner’s fees)||2,308
-
3,575
-|
|||27,158
1,014
23,884
6,067|
|**5. INVESTMENT IN SUBSIDIARY**|||
||||
Shares held in Friends of the National Railway Museum Enterprises Ltd at a cost of £40 (2020: £40).
The company is registered in England and Wales under registration number of 02418239.
## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
## **Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
|**2021 (continued)**|||
|---|---|---|
|**6. DEBTORS**|**2021**|**2020**|
||**£**|**£**|
|Sales debtors and amounts prepaid|201|1,077|
|Gift Aid Recoverable|1,534|-|
6
|Legacy funds receivable|||180,000|-|
|---|---|---|---|---|
||||________|________|
||||181,735|1,077|
||||======|=====|
||||=|==|
|**7. CASH AT BANK, IN HAND AND**|||||
|**INVESTMENTS**|||**2021**|**2020**|
||||**£**|**£**|
|Charity Oficial Investment Fund account|||728,968|567,116|
|Deposit and current accounts|||106,149|162,614|
|South of England Group current account|||2,289|2,324|
|North East Branch cash in hand|||379|245|
|Cash in hand|||135|159|
||||________|________|
|**Charity balances**|||837,920|732,458|
|FNRM Enterprises|||||
|Ltd|||18,926|16,437|
||||_______|_______|
|**Total group**|||856,846|748,895|
|||||=====|
||||======|=|
|Investments held with CCLA|||728,968|567,116|
|||||=====|
||||======|=|
|**8. CREDITORS: DUE WITHIN ONE YEAR**|**2021**|**2020**|**2021**|**2020**|
|||**Charit**|||
||**Charity**|**y**|**Group**|**Group**|
||**£**|**£**|**£**|**£**|
|Ordinary subscriptions paid in advance|2,419|2,290|2,419|2,290|
|Accruals|3,926|2,348|5,133|3,330|
|||100,00|||
|Other creditors|100,000|0|100,000|100,000|
||_______|______|______|______|
|||104,63|||
||106,345|8|107,552|105,620|
||=====|====|||
||=|==|=====|======|
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## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
## **Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
|**2021 (continued)**|||
|---|---|---|
||||
|**9. CREDITORS: DUE AFTER ONE YEAR**||**2021**
**2020**|
|||**£**
**£**|
|Movements of the life subscriptions fund were
as follows:|||
|Balance at 1 January 2021||9,679
11,120|
|New life memberships||750
1,300|
|||10,429
12,420|
|Transfer to Statement of Financial Activities||(2,656)
(2,741)|
|Balance at 31 December 2021||7,773
9,679|
||||
|**10. DUCHESS OF HAMILTON FUND (229 Club)**||**202**
**1**
**2020**|
|||**£**
**£**|
||||
|Balance at 1 January 2021||101,734
91,198|
|229 Club subscriptions and donations (including Gift
Aid)||2,036
5,806|
|Interest added from invested balances||-
104|
|Realised gain on investments within the year||14,000
-|
|Deduct : Unrealised gain on invested funds to 31 December 2020||(13,037)
-|
|Add : Unrealised gain on invested funds at 31 December 2021||4,680
4,626|
|||109,414
101,734|
|_Less_229 Club prizes and sundry expenses||-
-|
||||
|Balance at 31 December 2021||109,414
101,734|
|Some members of The Friends of the National Railway Museum have undertaken to be
responsible for some of the repair and maintenance of the locomotive_Duchess of_
_Hamilton._This has been fnanced through this Fund which is also known as_The 229_
_Club._|||
|**11. NATIONAL ARCHIVE of RAILWAY ORAL HISTORY FUND**
**2021**|
**2020**||
|**£**|**£**||
|Balance at 1 January 2021|4,768
6,762||
|Receipts in year|-
-||
|Transfer from Accumulated fund|-
-||
|Interest added from invested balances|-
7||
8
||4,768
6,769|
|---|---|
|_Less_Expenses paid|-
(2,001)|
|||
|Balance at 31 December 2021|4,768
4,768|
|||
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## **FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
## **Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
|**2021 (continued)**||
|---|---|
|||
|**12. BOROUGH MARKET JUNCTION SIGNAL BOX**
**FUND**|**2021**
**2020**|
||**£**
**£**|
|Balance at 1 January
2021|839
838|
|Interest added from invested balances|-
1|
||839
839|
|_Less_Outgoings|-
-|
|Balance at 31 December 2021|839
839|
|||
|**13. BRITAIN'S RAILWAYS – ALL**
**CHANGE**|**2021**
**2020**|
||**£**
**£**|
|Balance at 1 January 2021|4,964
10,469|
|Transfer from Accumulated fund|-
5,000|
|Receipts in the year including Gift Aid|-
-|
|Interest added from invested balances|-
-|
||4,964
15,469|
|_Less_Outgoings|(56)
(10,505)|
|Balance at 31 December 2021|4,908
4,964|
|||
|**14. HISTORY AND DEVELOPMENT OF RAILWAY**
**SIGNALLING**|**2021**
**2020**|
||**£**
**£**|
|Balance at 1 January 2021|9,172
2,185|
|Receipts in the year including Gift
Aid|-
271|
|Transfer from Accumulated fund|(101)
6,712|
|Interest added from invested
balances|-
4|
||9,071
9,172|
|_Less_Outgoings|(9,071)
-|
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Balance at 31 December 2021
9,172
-
**FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021 Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
## **15. DESIGNATED FUNDS**
During the year the Charity designated funds for the Vision 2025 Fund NRM totalling £250,000 and also £2,500 for the Ripon School Fund. These amounts are included within the Unrestricted Funds on the Statement of Financial Activities and Balance sheet.
## **16. ANALYSIS OF MOVEMENTS IN FUNDS**
||**Income**|**Expendit**|**Other**|**Movemen**|
|---|---|---|---|---|
|||**ure**|**gains/loss**|**t**|
||||**es**||
||**2021**|**2021**|**2021**|**2021**|
||**£**|**£**|**£**|**£**|
|**Unrestricted and**|||||
|**designated funds**|||||
|Revenue funds|373,434|(162,000)|75,540|286,974|
||**=====**|**======**|**======**|**======**|
||**=**|**=**|||
|**Restricted funds**|||||
|Various restricted funds(notes|3,050|(10,243)|5,645|(1,548)|
|10 to 14)|||||
||=====|======|=====|======|
||=||||
## **17. PARTICULARS OF HOW FUNDS ARE REPRESENTED BY ASSETS AND LIABILITIES**
|**At**|**31**|**December**|**2021**|**Unrestrict**|**Designate**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|---|
|||||**ed**|**d**|||
|||||**Funds**|**Funds**|**Funds**|**Funds**|
|||||**£**|**£**|**£**|**£**|
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|Current assets|686,216|252,500|119,929|1,058,645|
|---|---|---|---|---|
|Liabilities|(115,325)|-|-|(115,325)|
||_________|_________|_________|_________|
||570,891|252,500|119,929|943,320|
||=======|=======|=======|=======|
||=|=|=|=|
|**At 1 January 2021**|||||
|Current assets|651,716|-|121,477|773,193|
|Liabilities|(115,299)|-|-|(115,299)|
||_________|_________|_________|_________|
||536,417|-|121,477|657,894|
||=======|=======|=======|=======|
||=|=|=|=|
**FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
**Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
## **18. FUTURE CHARITABLE COMMITMENTS**
The Trustees’ objective is to continue to respond to requests for financial assistance for the National Railway Museum. It is anticipated that these requests will include some funding for the following projects:
Station Hall – Redevelopment and refreshment £100,00 payable 2022/23 * 0
(This is included in creditors and was paid over on 10 March 2022)
Vision 2025 – Major re-development of the National £250,00 Railway Museum Estate. (Resources allocated as a 0 Designated Fund) **
(Not included in creditors)
_* Approved at Council meeting on 1 December 2018_
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� _** Approved at Council meeting on 18 September 2021_
Implementation of The Station Hall re-development project has unavoidably slipped due to the Covid Pandemic and the fabrication of the existing building. The Charity is hoping to fulfil total contributions to the project of £1,000,000 over the coming 5 years.
The 229 Club Restricted fund has been suspended indefinitely as there is no immediate prospect of the locomotive _Duchess of Hamilton_ being returned into steam and main line running within the foreseeable future. The Restricted fund will remain to facilitate occasional maintenance costs within the next few years.
## **19. OPERATING LEASE COMMITMENTS**
The Charity had non-cancellable operating leases at the year-end which:
|Other operating leases (ofice equipment)|**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Expire within 1 year|-|**-**|
|Expire within 2 to 5 years (2020 – 2 - 5 years)|426|426|
||====|====|
**FRIENDS OF THE NATIONAL RAILWAY MUSEUM Financial Statements Year ended 31 December 2021**
**Notes to the Financial Statements for the year ended 31 December 2021 (continued)**
## **2**
## **0. RELATED PARTY TRANSACTIONS**
The wholly owned subsidiary company is Friends of the National Railway Museum Enterprises Limited, registered in England and Wales.
The following Trustees of the Friends of the National Railway Museum were also directors of the Friends of the National Railway Museum Enterprises Limited during 2021:
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Mr R S Rollings and Mr D M B Naylor
## **21. EMPLOYEES AND REMUNERATION**
The number of employees during the year ended 31 December 2021 was two (all parttime) (2020: three part-time). Total remuneration was £15,110 (2020: £19,536). No pension contributions were paid in the two years ended 31 December 2021.
During the year the Charity received Government Job Retention Grants relating to Covid of £1,014 (2020: £6,067). These grants are shown as restricted income and the gross wages paid shown as above within a corresponding payment from restricted funds for the element relating to the Covid grants.
No remuneration was paid to any of the Trustees during 2021 nor 2020. The Trustees claimed reimbursement of direct expenditure incurred on behalf of the charity amounting to £nil (2020: £nil)
## **22. WINDING UP OR DISSOLUTION OF THE CHARITY**
If upon winding up or dissolution of the charity there remains any assets, after the satisfaction of all debts
and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable
body or bodies having similar objects to the Charity.
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