Registered Number: 02141756 Charity Number: 297585 

## **THE CROSSNESS ENGINES** 

## **TRUST** 

## **(A Company Limited by Guarantee)** 


**Photograph: Steve James** 

## **UNAUDITED** 

## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 OCTOBER 2021** 

## HEDLEY DUNK LIMITED 

Chartered Accountants & Statutory Auditor Trinity House, 3 Bullace Lane Dartford Kent DA1 1BB 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Chairman's Statement**|2 - 6|
|**Trustees' Report**|7 - 8|
|**Independent Examiner's Report**|9|
|**Statement of Financial Activities**|10|
|**Balance Sheet**|11|
|**Notes to the Financial Statements**|12 - 23|





## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2021** 

M Jones A Neher P Nelson K M Ridley J G Warner A M Williams F K Germanus-Kunda K A Thyme Castle (appointed 1 April 2021, resigned 9 August 2021) E Bardrick (appointed 8 March 2022) 

**Company registered number** 02141756 **Charity registered number** 297585 **Registered office** Thames Water - Old Works Bazalgette Way London SE2 9AQ **Company secretary** M Jones **Accountants** Hedley Dunk Limited Chartered Accountants and Statutory Auditors Trinity House 3 Bullace Lane Dartford Kent DA1 1BB 

Page 1 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2021** 

The chairman presents his statement for the year. 

## Introduction 

Following previous practice this report formally presents the accounts for the last completed financial year to October 2021 and covers progress in other areas to date. 

The predominant feature of the year has been the Covid-19 pandemic which continued to have an impact on the Trust in terms of its ability to generated income. At the start of the year guided tours and open days had been reintroduced following the guidelines that had been published but these were brought to a halt by the lockdown starting just before Christmas and extending into the first half of 2021. 

The easing of restrictions did allow the site to re-open to visitors from April 2021 and we have seen an increase in visitor numbers as a result back to levels that could have been expected pre-pandemic. 

## Trust Organisation and Operations 

Some time ago the Trust received funding to support work on the development of a business plan and to develop better ways of ensuring business resilience.  Covid-19 had a significant impact on our ability to take this project forward but the Trust has spent considerable time on considering how both organisational structure and operations could be improved. 

Whilst this project is now complete there is a recognition that this work must continue. The Trust has been taking part in the Heritage Compass Programme, which comes to an end later in 2022.  Heritage Compass has helped us to begin a programme of organisational and cultural change.  Sessions with volunteers and Trustees have developed a case for change, an As is /To be exercise to formalise what we want the Trust to be like and we will be holding a further sessions to determine the steps needed to get there. 

The Heritage Compass programme has also published the first of its success guides based on benchmarking data from Heritage Organisations taking part in the Programme. The first guide is on Shops and cafes and will help inform the development of our shops and café.  Further guides will cover other aspects of sustainability and will help us in furthering evidence based decision making in developing the Trust. 

The first annual volunteer survey was conducted in March 2022 to help us understand the motivations for volunteering and what volunteers enjoy and what they dislike and help improve the volunteer experience. The survey found that 82% rated their overall experience as positive which is encouraging, but with some areas of improvement needed around support from the Board.  This is being addressed through the organisational and cultural change sessions mentioned previously.  The next volunteer survey will take place in spring 2023 and will help monitor progress and other ways to improve the volunteer experience. 

Underlying challenges are the culture of the Trust and the need to increase diversity of Trustees, volunteers, staff and audiences, with support for those taking on responsibilities.  The Trust needs to be a more outward looking organisation with a focus on its customers/audiences with the use of evidence and data to drive improvement and development. 

A skills audit is being undertaken among the volunteers and the new structure has identified roles that need to be recruited to with relevant skills. There are three priority areas of finance/accountancy, marketing and engineering. 

The Trust is currently going through a governance review which will be reviewed annually along with the business plan. 

Outside the work outlined above the Trust has been approached by Thames Water with a proposal to move the Trust car park to a different location.  Preliminary discussions have taken placed and it seems likely that the move will be implemented in the next year. 

Work is also well advanced on the installation of fibre-optic cable, essential for the delivery of the projects described under Learning and Outreach. 

Page 2 



**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021** 

## Health and safety 

COVID once again dominated the Trusts activities with the second lockdown running from 5 November 2020 to 2 December 2020 and the third lockdown starting on 6 January 2021 followed by a four step roadmap for lifting the lockdown finishing on 19 July 2021.  Step 2 of the roadmap allowed us to welcome limited numbers of volunteers from 12 April and with Step 3 for limited guests from 17 May. 

Accidents and incidents continued to be a concern although none were reported for the first six months of the year. There were two accidents with minor injuries including one to a visitor; three incidents were reported and one potential incident. This highlighted the need to prevent visitors and guests straying on to Thames Water property. 

Training was difficult to organise but the government allowed extension of many qualifications so operations could continue. We were able to conduct training for the fork lift truck so we renewed 6 licences. Asbestos work training was carried out in November 2021.  Thames Water induction training (COMAH) was stopped during the year and recommenced in November 2021. 

A few changes to operation of the site have been brought about as a result of a brief report from Savills, who manage Thames Water properties. A number of the recommendations had already been adopted before the report, and after risk assessments undertaken by the Trust additional precautions were taken for access to the Engine House Beam Floor and Valve House both in terms of visitors and volunteers. 

## Conservation 

Structural issues relating to cracks in cast-iron close to the engines and loose brickwork in the Beam Engine House and the lintel above the sliding doors in the Valve House have continued to be a cause for concern. Following an initial investigation little progress has been made in relation to the cracks in cast iron but, more recently, Thames Water has committed to covering the cost of a full investigation and this is now underway. 

Work on the conservation of Victoria has also slowed, in part because of the cast-iron problem but also because work is required to ensure that the lifting points above the engine are sufficiently robust. All of the bright metal part of Victoria have been cleaned and protective coatings have been applied. 

## Collections 

The collections departments (archives and artefacts) follow SPECTRUM guidelines for Museums.  Procedures for collections care and administration are codified in the various policies and plans written in preparation of the Trust seeking Museum Accreditation. 

Modes Compact cataloguing software is used to record key information about the archive collections, such as their accession numbers, provenance, and location. 

During the year: the Collections team has 

- updated the Emergency Plan; Archive Documentation Policy; Artefact Documentation Policy, and Care 

- and Collections Policy as required for Museum Accreditation. 

- catalogued over 1,000 items on MODES, clearing the cataloguing backlog. 

- reinstated behind the scenes collections tours on open days. The tours have been fully booked and 

   - receive positive feedback from attendees. 

Work that is ongoing includes: 

- creating a finding aid of digital photographs in the archive collection. 

- a sensitivity review of the Chronicle prior to accessioning. 

- rehousing the Arthur Green archive collection using more suitable materials (acid free folders and boxes). 

- the Stereophagus sewage pump, acquired in 2016 from Southend-on-Sea Borough Council, is now being 

- conserved by a team in the Fitting Shop. 

Page 3 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021** 

- a partially completed model of a portable stationary steam engine, donated in 2013, is now being 

   - completed by a team in the Fitting Shop. 

- every artefact has a record card. These are being checked and updated. Over half of this task has been 

- completed. 

## Royal Arsenal Narrow Gauge Railway 

It has taken RANG volunteers just over four years to get to the point where the Trust is able to fully operate the loco and carriages. We have renovated the locomotive, now renamed as Bazalgette, and two carriages, laid track the length of the John Ridley path, constructed and dismantled three temporary platforms as well as constructed the full length platforms both ends of the line. 

The platform at the end of the down slope of the John Ridley path was completed just prior to the 14th November 2021 Open Day. That allowed us to start operating the train the complete length of the line pulling both carriages. 

Unfortunately on the December 2021 Open Day the loco started to struggle to pull both carriages out from the end platform. We tried with one carriage but encountered the same issue so it was prudent to take it out of service to prevent a major breakdown. With hindsight given the age of the loco we should have anticipated possible mechanical issues when the loco was put under full load. 

The train was non-operational for January and will remain so until the fault can be investigated and repaired. Given the estimated cost of repair (c£10,000) the Trust had to seek external funding to cover this amount and a crowdfunding initiative is now underway. 

## Learning and Outreach 

In 2021 and 2022 we increased the number of Open Days every month in line with the Business Plan. Although we are currently unable to steam, we have been regularly welcoming over 300 visitors at each Open Day, ahead of the 250 target.  We have also been able to collect a year’s data from our Audience Agency Visitor Survey to better understand our audiences and their motivations for visiting.  This information will be used to flesh out the audience development and marketing planning in the Business Plan and produce a more detailed Audience Development/Marketing plan. The plan will enable the Trust to fine tune its offer and better target promotion to key audiences to increase numbers and income.  The Audience Agency visitor survey has been reviewed and renewed for 2022-23 with fewer questions. 

Visits from educational establishments are recovering in the post pandemic phase and consistently deliver excellent feedback. 

The impact of the pandemic has pushed the heritage sector into looking at new ways of engaging with their audiences - on-line. In response Crossness Learning and Outreach developed two project proposals for a funding bid to the Government’s DCMS Culture Recovery Fund. The funding application was successful and our work on the projects outlined below began in November 2020. 

## Virtual Guided Tour (VGT) 

Much of the work on the virtual guided tour has been completed but launch has been delayed because of the limited capability of our existing website to host the tour.  A project is underway to redevelop the website.  This will both allow the virtual guided tour to be offered to website visitors through a paywall and introduce better ways of managing and updating website content. 

## The Toilet Timeline (TT) 

The Toilet Timeline, a stand-alone website, embedded in and accessed via the Crossness website either via a mobile phone or PC, is now live. 

Page 4 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021** 

## Finance 

For the accounts for financial year 2021/2022 the Board has again elected to seek an Independent Examiners Report rather than a full audit.  The report and a copy of the accounts for financial year are incorporated in this document. 

The financial performance of the Trust during the year and subsequently has again been much influenced by the impact of the pandemic and associated lockdowns. 

During financial year 2020/2021 the Trust came very close to becoming insolvent and it was through support from a number of sources, including the National Lottery Heritage Fund, Historic England Thames Water and the London Borough of Bexley that the Trust has survived. 

More recently income from open days, group visits, guided tours and events organised for photography groups is showing signs of recovery, although we continue to be hampered by the inability to steam.  Costs have been and will continue to be monitored closely. 

## Trust Membership 

The following table shows the membership position at the time of writing. 

|PERIOD<br>|2019/20|2020/21|TOTAL|
|---|---|---|---|
|New Members|22|05<br>|27|
|Lost Members|(34)<br>|(28)|(62)|
|NET TOTALS|(12)<br>|(23)|(45)|



While we are always pleased to welcome new members, those we lose by non-renewal are always a matter of regret.  The majority are for understandable reasons – illness, death and loss of interest by moving away, into residential care or the escalating health needs of family members, for some, a return to paid work, and, not for the first time, the current economic situation.  A further reason is the loss of contact through changes of postal or email address and phone numbers, despite follow-ups by all available means. 

Again, some members only join for a year, perhaps because they see their fee as a one-off donation, rather than the start of a continuing relationship.  This may stem from a perception that, having visited once, they have “done” Crossness, they don’t see any point in re-visiting us.  We need therefore to keep our “offer” fresh. Hopefully, the Toilet Timeline and Virtual Guided Tour will redress this to some extent. 

Since the beginning of the current financial year in November 2021, there have been 15 new members and a number of important positions have now been filled.  However, 41 have not renewed their subscriptions for 22/23. 

## Current membership 

|TYPE OF MEMBERSHIP|Nos|% of adult membership|
|---|---|---|
|Life (Honorary/Life/Senior)|147|32.45|
|Individual<br>|64|14.13|
|Family<br>|40|8.83|
|Senior Citizen<br>|182|40.18|
|Unwaged<br>|3|0.66|
|Student<br>|4|0.88|
|Reciprocal organisations|13|2.87|
|TOTALS|463|100.00|
|Children (under 18) (free)|3||
|GRAND TOTALS<br>|456||



Page 5 



CROSSNESS ENGINES TRUST
{A Company Limlted by Guarantee)
CHAIRMAN'S STATEMENT (CONTINUED
FOR THE YEAR ENDED 31 OCTOBER 2021
We currenty have I00+ Vobjnteers on our books. H¢)wever. despite the reduction in the COVID19 risks, there
are a number of potential Volunteers whom we must follow-up to see whether we can sook fO￿ard lo their active
participation. We still need to recruf( four Team Leaders. (for Catering. Cknniftg. Tour Guides and Gardening)
either to fill current vacancies, or to buikl new teams.
However, our visrtors, appreciatiort of our help￿1. irrfcKmth and knowkdgeabie volvnteers remains undimmed.
Extemal relations
The Trust continues to have gwd ￿latiOnS with both Thame5 Water and the London Borough of Bexley and the
relationship with peabC￿ continues to develop. particularty in relation to arts base and other social enterprises.
Next steps- the year ahead
The priorities for the year ahead are to:
resolve the issues relalirbg to cracks in cast-iron and retum Prin￿ Con50rt to steam.,
address some wider building repair issues in the Beam Engine House and in the Vafve House..
develop a m¥Jeh enhanced Front of House team to sup*ment the dedicaled {and overstretched) core
volunteers who enab￿ the Open Days to happen. and to further increase opening in line with Ihe
Business Plan. The Front of House volunteer team will have an overhauled induction and
training programme to
encourage a more loc21 and dNerse pool:
launch a new webstte whtch will slreamline the online tookllig experienee for Open Days and tours as well
as providing a paywall for the vrrtual gukled tour. It will have a deaner Icx)k and feel with integrated social
media and will help people get to the information they need quKker. It wlll have better analytics foi a better
urKlerstanding of the use of the site,.
progress tchvafds Museum Accreditati"on.
revi￿ The Business PLan and Outcornes Framework in November 2022 following a full year of opening
after National Covid-19 k)ckdown.
Jones
rustee
Date.. 22 Juty 2022
Page 6

## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 OCTOBER 2021** 

The Trustees present their annual report together with the financial statements of the Charity for the 1 November 2020 to 31 October 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). 

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. 

##  **Policies and objectives** 

The principal objective of the company is the restoration and maintenance of the Victorian sewage outfall at Crossness. 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2) 

##  **Going concern** 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. 

##  **Reserves policy** 

The Trust has a reserves policy which aims to maintain reserves to cover: 

- running costs for six months; 

- unplanned essential repairs; 

- redundancy. 

Together these elements total £140,000. 

At present unrestricted income available falls well below that target; at 31 October 2021 the total available funding available to the Trust was £19,764.  The key reasons for this are: 

- The impact of the Covid pandemic; 

- The inability to offer visitors the option of visiting when the engine in steam which has had a significant impact on the Trust’s ability to generate income. 

As the impact of the Covid-19 pandemic lessens and work proceeds on addressing the building structure issues the Trust will seek to build the level of reserves during future financial years. 

## **Structure, governance and management** 

##  **Constitution** 

Crossness Engines Trust is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 22 June 1987 and subsequently amended on 06 June 1999 and 17 September 2019. 

Page 7 



CROSSNESS ENGINES TRUST
(A Company Limited by Guardnts•)
TRUSTEES. REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
Methods of appointment or ele¢lion of Trnstees
The management of the ChaTty is the responsbilty of the Trustees 7th0 a￿ el￿￿ed and ctropted under the
terms of the Memorandum ofAssockation.
Statement of Trustees, responsibilities
The Trustees {who are also the direclors of the Charty for the Pu￿OseS of company lawl are responsible for
preparing the Trustees. ReKx)rt and the financial statements in accordance with appli(ab5e law and United
Kingdom Accounting Standards {United lfjngdom Generaity Awted AcuuntirvJ Practir*l.
Company law requires Ihe Trustees to prepare ffin8ncia statements for each financial . Under company law, the
Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of
the slate of affairs of the Chartty arKI of its incoming resour￿ and applicAtion of resources. including its income
and expenditure, for that pertod. In preparing these financial statements, the Trustees are required to..
select suitable alxounting polic￿$ and then appty them consistenty.
obseNe the methc#Js and principles of the Chartlies SORP (FRS 102>.
make judgments and accounting ests"mates that are reasonable and prudent",
stsle whether appltr2ble UK Accountin9 Star￿ards (FRS 102) have Wn folk)wed, subject to any material
departures dISc￿Sed and explained in the finanryal statements.,
prepare the financsal statements on the 9)ing can￿M ba￿S unless rt is inappropriate to presume that the
Charty will continue in tr¥Jsiness.
The Trustees are responsible for keeping adequate a(￿Unting Tecords that are SUff￿lent lo show and explain
the Charity's transactions and disd05e with reasonable accuracy al any time the financÉal position of the Charity
and enable them to ensure that the financial ststements compty with the Companies Act 2006. They are also
responsible for safeguaiding the assets of the Charty and hen￿ for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf ty.
Jones
TNslee
Date: 22 Juty 2022
Page 8

**CROSSNESS ENGINES TRUST (A Company Limited by Guarantee)** 

## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **Independent Examiner's Report to the Trustees of Crossness Engines Trust ('the Charity')** 

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 October 2021. 

## **Responsibilities and Basis of Report** 

As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). 

Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

## **Independent Examiner's Statement** 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or 

2. the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or 

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Signed: Dated: 22 July 2022 Jack Fryer ACA 

## **Hedley Dunk Limited** 

Chartered Accountants and Statutory Auditors 

Page 9 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2021** 

|Note<br>**Income from:**<br>Donations and legacies<br>3<br>Charitable activities<br>4<br>Other trading activities<br>Investments<br>5<br>Other income<br>6<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net expenditure**<br>Transfers between funds<br>18<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|Restricted<br>funds<br>2021<br>£<br>42,135<br>-<br>-<br>-<br>-<br>42,135<br>12,709<br>139,989<br>152,698<br>(110,563)<br>10,847<br>(99,716)<br>1,652,565<br>(99,716)<br>1,552,849|Unrestricted<br>funds<br>2021<br>£<br>19,540<br>70,550<br>2,447<br>5<br>-<br>92,542<br>413<br>93,080<br>93,493<br>(951)<br>(10,848)<br>(11,799)<br>175,934<br>(11,799)<br>164,135|Total<br>funds<br>2021<br>£<br>61,675<br>70,550<br>2,447<br>5<br>-<br>134,677<br>13,122<br>233,069<br>246,191<br>(111,514)<br>(1)<br>(111,515)<br>1,828,499<br>(111,515)<br>1,716,984|Total<br>funds<br>2020<br>£<br>117,595<br>35,552<br>2,112<br>100<br>11,181<br>166,540<br>296<br>167,091<br>167,387<br>(847)<br>-<br>(847)<br>1,829,346<br>(847)<br>1,828,499|
|---|---|---|---|---|



The Statement of Financial Activities includes all gains and losses recognised in the year. 

The notes on pages 12 to 23 form part of these financial statements. 

Page 10 



CROSSNESS ENGINES TRUST
{A Company Limit￿ by Guarantso)
&4LANCE SHE
FOR THE YEAR ENDED 31 OCTOBER 2021
2021
2020
Note
Fixed assets
Tangibk assets
13
1.655,696
1,706,737
1,655,696
1,706,737
Current assets
Stocks
Debtors
Cash at bank and in hand
14
15
21.666
49.859
20.249
21,671
16,893
103.523
91.774
142,087
Creditors: amounts falling due within one
year
16
(30.485)
{20,325)
Net current assets
61.289
121,762
Total assets less current liabilities
1.716,985
1.828,499
Net assets excluding ￿nSIon asset
1,716,985
1.828,499
Total net assets
1,716,985
1,828,499
Charity funds
Restricted funds
Unrestricted funds
18
1.552.850
164.135
1.652,565
175,934
18
Total funds
1.716.985
1.828,499
The Charity was enlitled to exemption from audii under section 477 of the Companies Act 2006.
The members have not required the (xxnpany to ithin an au￿1 for the year in question in accordan￿ with
section 476 of Companies Act 20CN8.
The Twstees aCknth￿edge their tE5Fx)nsbilibes for comptying wilh the requirements of the Ad wrth respect to
a￿oUnting records and preparatK)n of financial statements.
The ffi￿a￿al statements have been prepared in aceordaKe with the provistons applicable to entslies subject lo
the STTrall companies regime.
The financial statements were approv&Y aThJ authorise(I for Issue by the Trustees on 22 Juty 2022 and signed on
their b
Jone
Trustee
The notes on pages 12 to 23 f(xTh part of ttwe financaal statements.
Page 11

**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **1. General information** 

Crossness Engines Trust is a charitable company limited by guarantee registered and domiciled in the UK. It's principal place of business is the same as its registered office and is shown in the company information. The principal activities and object of the company is that of restoration and maintenance of the Victorian sewage outfall at Crossness. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

Crossness Engines Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

## **2.2 Income** 

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

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. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

## **2.3 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. 

Page 12 



**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **2. Accounting policies (continued)** 

## **2.3 Expenditure (continued)** 

All expenditure is inclusive of irrecoverable VAT. 

## **2.4 Government grants** 

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred. 

## **2.5 Tangible fixed assets and depreciation** 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following basis: 

Long-term leasehold property - 2% straight line - Plant and machinery at varying rates to reflect asset's useful economic life from 5 - 20% 

## **2.6 Stocks** 

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 

## **2.7 Debtors** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## **2.8 Cash at bank and in hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **2.9 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

Page 13 



**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **2. Accounting policies (continued)** 

## **2.10 Financial instruments** 

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.11 Pensions** 

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 

## **2.12 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

## **3. Income from donations and legacies** 

|Donations<br>Grants<br>Local Authority Grant<br>**Total 2021**|Restricted<br>funds<br>2021<br>£<br>-<br>42,135<br>-<br>42,135|Unrestricted<br>funds<br>2021<br>£<br>11,540<br>8,000<br>-<br>19,540|Total<br>funds<br>2021<br>£<br>11,540<br>50,135<br>-<br>61,675|Total<br>funds<br>2020<br>£<br>15,666<br>91,929<br>10,000|
|---|---|---|---|---|
|||||117,595|



## **4. Income from charitable activities** 

||Unrestricted|Total|Total|
|---|---|---|---|
||funds|funds|funds|
||2021|2021|2020|
||£|£|£|
|Restoration and maintenance of building and engines|70,550|70,550|35,552|



Page 14 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

|**5.**<br>**Investment income**<br>Bank Interest received<br>**6.**<br>**Other incoming resources**<br>Job Retention Scheme Grants<br>Total 2020<br>**7.**<br>**Analysis of expenditure on charitable activities**<br>**Summary by fund type**<br>Restricted<br>funds<br>2021<br>£<br>Restoration and maintenance of building and<br>engines<br>139,989<br>**8.**<br>**Analysis of expenditure by activities**<br>Restoration and maintenance of building and engines|Unrestricted<br>funds<br>2021<br>£<br>5<br>Unrestricted<br>funds<br>2021<br>£<br>-<br>11,181<br>Unrestricted<br>funds<br>2021<br>£<br>93,080<br>Activities<br>undertaken<br>directly<br>2021<br>£<br>233,069|Total<br>funds<br>2021<br>£<br>5<br>Total<br>funds<br>2021<br>£<br>-<br>11,181<br>Total<br>funds<br>2021<br>£<br>233,069<br>Total<br>funds<br>2021<br>£<br>233,069|Total<br>funds<br>2020<br>£<br>100|
|---|---|---|---|
||||Total<br>funds<br>2020<br>£<br>11,181|
||||Total<br>funds<br>2020<br>£<br>167,091|
||||Total<br>funds<br>2020<br>£<br>167,091|



Page 15 



**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **8. Analysis of expenditure by activities (continued)** 

## **Analysis of direct costs** 

|Staff costs<br>Depreciation<br>Purchases<br>Site facilities and operational costs<br>Health and safety costs<br>Office costs<br>Legal fees<br>Other professional fees<br>Marketing and publicity<br>**Total 2021**<br>**Analysis of support costs**|Restoration<br>and<br>maintenance<br>of building<br>and engines<br>2021<br>£<br>62,799<br>60,456<br>19,879<br>59,224<br>4,689<br>16,711<br>171<br>4,200<br>4,940<br>233,069|Total<br>funds<br>2021<br>£<br>62,799<br>60,456<br>19,879<br>59,224<br>4,689<br>16,711<br>171<br>4,200<br>4,940<br>233,069|Total<br>funds<br>2020<br>£<br>46,207<br>57,988<br>4,623<br>36,745<br>6,979<br>9,515<br>191<br>4,813<br>30|
|---|---|---|---|
||||167,091|
|||||



## **9. Independent examiner's remuneration** 

The independent examiner's remuneration amounts to an independent examiner fee of £3,000 (2020 - £3,000). 

Page 16 



**CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **10. Staff costs** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|2021<br>£<br>60,000<br>1,373<br>1,426<br>62,799|2020<br>£<br>45,154<br>9<br>1,044|
|---|---|---|
||||
|||46,207|



The average number of persons employed by the Charity during the year was as follows: 

||2021|2020|
|---|---|---|
||No.|No.|
|Staff|2|2|



No employee received remuneration amounting to more than £60,000 in either year. 

## **11. Pension commitments** 

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £1,426 (2020 - £1,044). Contributions totalling £317 (2020 - £277) were payable to the fund at the balance sheet date and are included in creditors. 

## **12. Trustees' remuneration and expenses** 

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). 

During the year ended 31 October 2021, expenses were reimbursed or paid directly to 3 Trustees (2020 - to 6 Trustees) broken down as follows: 

|Travel<br>Catering<br>Health and safety costs<br>General office expenses|2021<br>£<br>108<br>1,663<br>5,987<br>1,374<br>9,132|2020<br>£<br>51<br>749<br>1,350<br>1,145|
|---|---|---|
||||
|||3,295|



Page 17 



**CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **13. Tangible fixed assets** 

|**Cost or valuation**<br>At 1 November 2020<br>Additions<br>At 31 October 2021<br>**Depreciation**<br>At 1 November 2020<br>Charge for the year<br>At 31 October 2021<br>**Net book value**<br>At 31 October 2021<br>At 31 October 2020<br>**14.**<br>**Stocks**<br>Finished goods and goods for resale<br>**15.**<br>**Debtors**<br>**Due within one year**<br>Trade debtors<br>Prepayments and accrued income<br>Tax recoverable<br>Grants receivable|Long-term<br>leasehold<br>property<br>£<br>1,983,047<br>-<br>1,983,047<br>426,178<br>39,661<br>465,839<br>1,517,208<br>1,556,869||Plant and<br>machinery<br>£<br>368,716<br>9,415<br>378,131<br>218,848<br>20,795<br>239,643<br>138,488<br>149,868<br>2021<br>£<br>21,666<br>2021<br>£<br>37,175<br>2,364<br>1,500<br>8,820<br>49,859|Total<br>£<br>2,351,763<br>9,415|
|---|---|---|---|---|
|||||2,361,178|
|||||645,026<br>60,456|
|||||705,482|
|||||1,655,696|
|||||1,706,737|
|||||2020<br>£<br>21,671<br>2020<br>£<br>13,145<br>2,277<br>1,471<br>-<br>16,893|



Page 18 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **16. Creditors: Amounts falling due within one year** 

|Trade creditors<br>Other taxation and social security<br>Pension fund loan payable<br>Accruals and deferred income|2021<br>£<br>5,783<br>1,025<br>317<br>23,360<br>30,485|2020<br>£<br>10,819<br>877<br>277<br>8,352|
|---|---|---|
||||
|||20,325|



## **17. Contingent liabilities** 

The Heritage Lottery Fund granted monies for restoration works.  Terms of the grant included a charge over the leasehold property.  The charge remains for 25 years from 13 June 2008, under the terms of the charge all or part of the grant can become repayable. 

Page 19 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **18. Statement of funds** 

## **Statement of funds - current year** 

|**Unrestricted funds**<br>General Funds<br>**Restricted funds**<br>Landfill Tax Credit and English<br>Heritage Fund<br>Low Carbon Programme<br>Restoration Project<br>Thames Water COVID 19<br>NLHF COVID Emergency<br>NLHF Culture Recovery Fund<br>**Total of funds**|Balance at 1<br>November<br>2020<br>£<br>175,934<br>17,934<br>56,928<br>1,515,493<br>15,501<br>46,709<br>-<br>1,652,565<br>1,828,499|Income<br>£<br>92,542<br>-<br>-<br>13,812<br>-<br>-<br>28,323<br>42,135<br>134,677|Expenditure<br>£<br>(93,493)<br>-<br>(9,208)<br>(59,581)<br>(15,263)<br>(40,369)<br>(28,276)<br>(152,697)<br>(246,190)|Transfers<br>in/out<br>£<br>(10,848)<br>-<br>-<br>1,433<br>-<br>9,414<br>-<br>10,847<br>(1)|Balance at<br>31 October<br>2021<br>£<br>164,135|
|---|---|---|---|---|---|
||||||17,934<br>47,720<br>1,471,157<br>238<br>15,754<br>47|
||||||1,552,850|
||||||1,716,985|



Page 20 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **18. Statement of funds (continued)** 

## **Statement of funds - prior year** 

|**Unrestricted funds**<br>General Funds<br>**Restricted funds**<br>Landfill Tax Credit and English Heritage Fund<br>Low Carbon Programme<br>Restoration Project<br>Asbestos Removal Project<br>Thames Water COVID 19<br>NLHF COVID Emergency<br>**Total of funds**|Balance at<br>1 November<br>2019<br>£<br>185,440<br>17,934<br>66,144<br>1,559,828<br>-<br>-<br>-<br>1,643,906<br>1,829,346|Income<br>£<br>82,111<br>-<br>-<br>-<br>14,029<br>20,000<br>50,400<br>84,429<br>166,540|Expenditure<br>£<br>(91,617)<br>-<br>(9,216)<br>(44,335)<br>(14,029)<br>(4,499)<br>(3,691)<br>(75,770)<br>(167,387)|Balance at<br>31 October<br>2020<br>£<br>175,934|
|---|---|---|---|---|
|||||17,934<br>56,928<br>1,515,493<br>-<br>15,501<br>46,709|
|||||1,652,565|
|||||1,828,499|



## **19. Summary of funds** 

## **Summary of funds - current year** 

|General funds<br>Restricted funds|Balance at 1<br>November<br>2020<br>£<br>175,934<br>1,652,565<br>1,828,499|Income<br>£<br>92,542<br>42,135<br>134,677|Expenditure<br>£<br>(93,493)<br>(152,697)<br>(246,190)|Transfers<br>in/out<br>£<br>(10,848)<br>10,847<br>(1)|Balance at<br>31 October<br>2021<br>£<br>164,135<br>1,552,850|
|---|---|---|---|---|---|
||||||1,716,985|



Page 21 



## **CROSSNESS ENGINES TRUST** 

## **(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **19. Summary of funds (continued)** 

## **Summary of funds - prior year** 

|General funds<br>Restricted funds|Balance at<br>1 November<br>2019<br>£<br>185,440<br>1,643,906<br>1,829,346|Income<br>£<br>82,111<br>84,429<br>166,540|Expenditure<br>£<br>(91,617)<br>(75,770)<br>(167,387)|Balance at<br>31 October<br>2020<br>£<br>175,934<br>1,652,565|
|---|---|---|---|---|
|||||1,828,499|



## **20. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>**Total**<br>**Analysis of net assets between funds - prior year**<br>Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>**Total**|Restricted<br>funds<br>2021<br>£<br>1,625,717<br>(52,867)<br>(20,000)<br>1,552,850<br>Restricted<br>funds<br>2020<br>£<br>1,668,176<br>(10,619)<br>(4,992)<br>1,652,565|Unrestricted<br>funds<br>2021<br>£<br>29,979<br>144,641<br>(10,485)<br>164,135<br>Unrestricted<br>funds<br>2020<br>£<br>38,561<br>152,706<br>(15,333)<br>175,934|Total<br>funds<br>2021<br>£<br>1,655,696<br>91,774<br>(30,485)|
|---|---|---|---|
||||1,716,985|
||||Total<br>funds<br>2020<br>£<br>1,706,737<br>142,087<br>(20,325)|
||||1,828,499|



Page 22 



**CROSSNESS ENGINES TRUST** 

**(A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** 

## **21. Related party transactions** 

The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 October 2021. 

Page 23