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2023-03-31-accounts

Registered number: 744229 Charity number: 313615

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

CONTENTS
Page
Reference and administrative details of the Society, its Directors and advisers 1
Directors' report 2 - 7
Independent auditors' report on the financial statements 8 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12 - 13
Society balance sheet 14 - 15
Consolidated statement of cash flows 16
Notes to the financial statements 17 - 42

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SOCIETY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Patron HRH The Duke of Gloucester, KG, GCVO
President RT Pennyfather (appointed 22 July 2022)
I Ross, BSc, CEng, FIET, FIMechE (retired 22 July 2022)
Vice-Presidents GB Claydon, CB, LLB, M Inst. TA, CMILT
DJH Senior, OBE, MA
MC Crabtree IEng, MIET
C Heaton
Directors KR Rigg, ACIB, Chairman
ID Pleace, FCA, MSc, BSc(Econ), Vice Chairman
PM Benham, FCILT1
JA Blythe, BA, MSc, MCIHT
DA Frodsham
DJ Heeley, M.Eng (hons), C.Eng, MIET, MIRSE
P Milton1
AM Pendleton
J Roberts (resigned 25 July 2023)1
DP Webb
AJ Willis
MC Wright, BSc, C Eng, MI Chem E, CMILT (resigned 12 November 2022)
1
Non-member director
Company registered
number
744229
Charity registered
number
313615
Museum premises and
registered office
Crich
Matlock
Derbyshire
DE4 5DP
Arts Council England
Registered Museum no.
508
Auditors
Bates Weston Audit Ltd
Statutory Auditors
Chartered Accountants
The Mills
Canal Street
Derby
DE1 2RJ
Bankers
Barclays Bank PLC
Leicester

Page 1

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Directors of the Board present their report and financial statements of the Society for the year ended 31 March 2023 and confirm the latter comply with the requirements of the Companies Act 2006 and the Charities SORP.

Reference and administrative information

The Society, which is registered as a charity, owns and maintains the Crich Tramway Village, home of the National Tramway Museum at Crich, Derbyshire, (the Museum), which is devoted to tramways and allied interests. It is not liable to corporation tax or income tax.

The Directors of the Board (who act as directors under Company law and trustees under Charity law) are set out on page 1.

At the Annual General Meeting on 12 November 2022 MC Wright retired & Messrs DA Frodsham and DP Webb were re-elected.

Structure, governance and management

Governing document

The Society is governed by the Memorandum and Articles of Association, as last amended by Special Resolution of the Society on 12 November 2022. The Society is a company limited by guarantee and does not have any share capital.

Recruitment and training of Board Members

Voting members of the Society may stand for appointment as Member Directors to the Board. Any two voting members may propose another voting member. The individual must be 18 or over and any such proposal must be in writing and be received by the Society no later than 42 days prior to the Annual General Meeting. If the number of candidates is fewer than or equal to the number of relevant posts available, all such candidates are deemed automatically elected. In the event of there being more candidates than posts available, a vote is held with each member having the right to vote entitled to cast his or her vote in favour of as many candidates as there are vacant posts. Casual vacancies may be filled by the Board but the individual appointed must retire and seek election at the next Annual General Meeting.

The Board also has the power to appoint up to three Non-Member Directors who are neither members of the Society nor employees.

Following election, newly elected directors receive an induction by the person appointed as Secretary and another director. The induction includes a detailed introduction and explanation of Board proceedings and content. Key areas are explained in detail, such as Finance, Personnel, Collection, Operations and Health & Safety.

All directors serve for an initial period of three years and thereafter for no more than two further consecutive periods of three years, Directors may not be eligible for re-election or re-appointment until a period of at least two years has elapsed.

Organisational structure

Ultimate responsibility for all decisions made by the Society rests with the Board. These decisions are made on the recommendations of individual Society officers, in particular the General Manager, or the relevant standing committees which are currently Finance, Collections Management, Development, Health & Safety, Membership and Tramcar Conservation. All such officers, and committees, are accountable to the Board and report on a regular basis.

Page 2

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

A subsidiary company, Tramway Museum Services (R&C) Limited, traded throughout the year from premises under licence from the Society. The subsidiary is wholly owned by the Society and hence the subsidiary's board is directly accountable to the Board of the Society.

Arrangements for setting pay and remuneration of key management personnel

A Board sub-committee chaired by the General Manager sets the pay and remuneration of key management personnel via an annual review in consultation with the recognised Trade Union.

Principal Risks and Uncertainties

The Board has identified the following four key areas of Business Risk;

Systems have been put in place to oversee all of these areas and these are reviewed on a regular basis. Full details are available in the “Business Risk Register” freely available to all members on request and held in electronic form on the Society's server accessible to all system users.

Objectives and activities

Objectives

The principal objectives of the Society are:

The objectives of the Society are interpreted through the Mission Statement which, as noted last year, are still under review as part of the Society’s strategy development and against which steady progress has been made. Key objectives for the coming year include the continuing improvement to facilities at Crich, the recruitment, training and retention of more volunteers, obtaining grant funding and increasing customer numbers.

The objectives of the Society have been reviewed as part of the National Lottery Heritage Fund (NLHF) funded Tramsformation project, which following the adoption of the new Articles of Association is now complete.

Strategies

The Society receives no core funding and must therefore operate within its earned income, subscriptions, donations and grants. The Board has sought to continue to maximise earned income, take advantage of fiscal benefits and control costs. To contribute to the Society's sustainability the Board also continues to seek donations and grants for its development.

Principal activities

The main activities undertaken by the Society in achieving its objectives include the operation of the Museum, education, tramcar restoration and a tramway archive and research library.

Page 3

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

In accordance with the established accounting policies set out on pages 17 to 21 the financial results do not take account of the significant voluntary input at all levels of operation of the Museum. Whilst a financial evaluation of this input is difficult, it is estimated that the amount of voluntary input is equivalent to approximately 33 full time equivalent members of staff.

Public Benefit

When planning activities for the year the Board has considered the Charity Commission general guidance on public benefit. In particular it has considered how the planned activities will contribute towards the aims and activities they have set.

As explained in the Objectives and activities section, the Society exists to preserve items of national heritage for the nation and promote these items.

During the financial year, paying customer numbers were 60,708 (2022: 67,849) with an additional 35,755 (2022: 31,271) of free admissions. The Society offers reduced admission price for senior citizens and children as well as a family ticket to make the collection accessible to as many people as possible. Wheelchairs are freely available for less able customers and a smoothway around the Museum is available to enhance accessibility for wheelchair and pushchair users.

The preservation and demonstration of tramway vehicles are central to the Society's objectives and restoration work continued on several historic tramcars during the year.

The Society is custodian of archives relating to tramways and other forms of transport, of national and international importance, which is made freely available to members of the public wishing to carry out research.

The Society employs education staff who work closely with schools to support teachers in their delivery of several areas of the national curriculum by way of facilitating school visits and offering themed workshops.

Further information about how the Society delivers public benefit in meeting its charitable objectives is provided throughout this report.

Achievement and performance

The visitor season started uneventfully on Saturday the 12th March 2022, just prior to the start of the accounting year, and we were looking forward to the first season since 2019 without pandemic restrictions.

However, in early May we received notice of a visit by the Office of Rail and Road (The ORR) our regulator, which took place on the 17th May 2022. We understand that this followed a notification by a ‘whistle-blower’. The same afternoon ORR served the Society with two prohibition notices for areas of our overhead line infrastructure. Whilst one notice was resolved very quickly, a notice relating to the depot fan area prevented us from taking the tramcars in and out of the depots until the situation was fully resolved.

This was particularly frustrating as the Society had carried out as much maintenance as permitted during the Pandemic years and we were working in partnership with professional organisation ‘Pod-Trak’ to expedite the work further, with a full plan in place for both immediate work and further work for the winter of 2022/23.

At this point, as we were already contractually committed to the planned Seaside event, we opened to the public without operational tramcars. It quickly became evident that this was not financially viable over an extended period. The decision was taken to close the Museum to the public immediately following the end of the event. Whilst saving some expenditure on seasonal employees this inevitably still had a serious and fundamental impact on income as many of our other expenses remained.

Page 4

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

To mitigate some of the maintenance expenses the Museum instigated a ‘sponsor a traction pole’ appeal which allowed sponsors to ‘adopt’ a traction pole and to have their name stencilled on it if they wished. Around £35,000 has been raised including gift aid. We were also extremely grateful to NET Nottingham for the donation of the Traction poles that enabled the immediate work to be completed.

Following the completion of the essential work on the depot fan area the Museum re-opened to the public with operational tramcars on 2nd July 2022. There had been an amount of publicity relating to the situation in the local press and we were surprised by the level of good will shown by the public when they returned.

There were a number of additional areas that the ORR highlighted in their report which have been or will be imminently addressed. Overall the Museum is now a safer place for everyone.

There were a number of further positives during the year:

The Museum maintained its consistently high score in the Visit England Quality Assurance Award.

Work continued on both LCC1 and Newcastle 102 and both are now expected to be launched fully in the foreseeable future.

Financial review

The main source of income continues to be the paying customers of the Museum. Total customer income combining admissions, retail and catering takings was £1,378,000 (2022: £1,428,000).

In the calendar year paying customers were 60,708, down 7,141 on the previous year. On a calendar basis, the Museum received 62,023 paying customers compared to 63,813 in 2021. Unrestricted donations and membership subscriptions provided a further £447,000 towards the Society's general funds. After costs of generating funds of £490,000 and charity governance costs of £17,000, the net unrestricted incoming resources available for charitable activities was £1,318,000. Of this amount £757,000 was used for Museum operation including admission expenses, workshop and other tramway costs, exhibitions and education. A further £588,000 was spent on the Museum site itself including infrastructure costs, publicity and promotion, and Society membership expenses. £132,000 was used to fund collection and curatorial activities.

Following the requirements of Financial Reporting Standard 102 (FRS 102) Retirement Benefits, the Society's share of the defined benefit staff pension scheme operated by Derbyshire County Council has improved from a £178,000 deficit to a £234,000 surplus. The corresponding pension asset on the balance sheet has been restricted to nil as disclosed at note 24.

Restricted income from donating bodies totalled £51,000 in the year. Restricted expenditure in the year of £128,000 included tramcar restoration £45,000, site costs £49,000 and exhibitions £21,000.

The Museum continues to operate successfully its admission scheme incorporating 12-month season tickets. This has allowed the Museum to reclaim £72,000 of Gift Aid in the year (2022 : £74,000).

The membership of the Society at 31 March 2022 was 1,675, including non-voting members and family members; this reflects an decrease of 199 during the year.

Reserves policies

At 31 March 2023 the level of free reserves after the pension deficit was £1,864,000 (see note 20) including the designated fund. The Business Interruption Contingency Fund created to meet potential costs arising due to a significant downturn in customer numbers has reduced to £200,000, and the Replacement Cafe fund has been set up with the proceeds of the sale of Field Cottage of £274,638 and the Richard Clarke legacy of £563,891. Remaining free reserves after these designated funds were £825,000.

Page 5

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The level of free reserves should cover four months revenue expenditure. Taking account of the need to fund the Museum over the winter months and given the significant impact that an unforeseen event could have upon the future of the Museum, these free reserves are sufficient at present to provide this cover.

Plans for the future

Work will be continued on improving our overhead line infrastructure and in this regard it is planned to acquire a mobile working at height elevated platform or MEWP during 2023/2024 to assist with our maintenance programmes and make the work more cost effective. Alongside this we wish to become more self-sufficient going forward, with staff and volunteers undertaking competence training and assessment to carry out the required work in-house.

Improvement work will be undertaken on the historical Bowes Lyon Bridge as soon as possible, repairing the metal structures and paintwork.

An area of vulnerability for the Museum is disability access. It is intended to develop a second accessible Tram for public use in the near future. This will facilitate a more reliable authentic Tramcar experience for our less able visitors.

A Changing Places facility will be installed as soon as a suitable location is identified.

Replacement of the café building and associated development of an access building connecting both the Red Lion public house and the café is a key priority. This will enable the removal of the temporary ramp structures and give improved accessibility for our visitors. Tendering is in process and commencement of demolition is expected for November 2023, with the new construction planned to be complete by May 2024.

Longer term it is planned to develop the Great Exhibition Hall into a more environmentally sustainable space and provide improved storage for our Tramcars in depots 5 and 6.

Directors' responsibilities

The Board is responsible for preparing the Report of the Board and the financial statements in accordance with applicable law and regulations.

Company law requires the Board to prepare financial statements for each financial year. Under that law the Board has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Board must not approve the financial statements unless they are satisfied that they give a true and fair view of the affairs of the Society and its subsidiary company (the Group) and of the income and expenditure of the Group for that period. In preparing those financial statements, the Board is required to:

The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the Society's transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial statements comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

In so far as the Board is, individually, aware:

The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Society's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Going Concern

It is the view of the Board of Directors that it is appropriate to adopt the Going Concern basis in producing these financial statements. The Directors have reached this conclusion having reviewed financial forecasts which pay due regard to the financial risks posed by the short term closure of the Museum in June 2022, necessary to carry out work to the overhead line, as well as the broader economic context of cost of living pressures.

Freehold land and buildings

The freehold land and buildings are carried in the Balance Sheet at cost and exclude the value of substantial amounts of unpaid labour, part volunteer, part Government Employment Support Schemes, not funded by the Society. The reinstatement value for insurance purposes of the buildings is about £6,000,000 in excess of the book value. Due to the historical nature of some of the buildings, and the specialised nature of the Museum complex and its unusual location, the Board does not feel able to place a market value on the property.

Auditor

Bates Weston Audit Limited have expressed their willingness to continue in office and a resolution to reappoint them will be proposed at the Annual General Meeting.

Approved by order of the members of the board of Directors and signed on their behalf by:

KR Rigg Chairman Date: 2 September 2023

Page 7

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF THE TRAMWAY MUSEUM SOCIETY

Opinion

We have audited the financial statements of The Tramway Museum Society (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Society balance sheet, the Consolidated statement of cash flows and the related notes, 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Directors' 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 Group's or the parent charitable company'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 Directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within 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 course of 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 this gives rise to 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.

Page 8

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF THE TRAMWAY MUSEUM SOCIETY (CONTINUED)

Opinion 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement, the Directors (who are also the directors of the charitable company for the purposes of company law) 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 the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group's and the parent charitable company'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 Directors either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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:

Based on our understanding of the charitable company and industry in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011. Audit procedures performed by the engagement team included:

Page 9

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF THE TRAMWAY MUSEUM SOCIETY (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charitable company'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 charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Wayne Thomas ACA (Senior Statutory Auditor)

for and on behalf of

Bates Weston Audit Ltd

Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE1 2RJ

8 September 2023

Page 10

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
Total income
Expenditure on:
Raising funds
7
Charitable activities
8,9
Total expenditure
Net expenditure
Other recognised
gains:
Actuarial gains on
defined benefit pension
schemes
24
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2023
£
439,126
917,584
464,576
4,083
1,825,369
489,742
1,494,695
1,984,437
(159,068)
191,000
31,932
2,924,127
31,932
2,956,059		 Restricted
funds -
Revenue
2023
£
51,045
-
-
40
51,085
-
52,267
52,267
(1,182)
-
(1,182)
1,021,413
(1,182)
1,020,231		 Restricted
funds -
Capital
2023
£
-
-
-
-
-
-
76,089
76,089
(76,089)
-
(76,089)
2,017,714
(76,089)
1,941,625		 Total
funds
2023
£
490,171
917,584
464,576
4,123
1,876,454
489,742
1,623,051
2,112,793
(236,339)
191,000
(45,339)
5,963,254
(45,339)
5,917,915		 Total
funds
2022
£
446,300
964,016
469,356
(158)
1,879,514
445,787
1,583,198
2,028,985
(149,471)
174,000
24,529
5,938,725
24,529
5,963,254

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 42 form part of these financial statements.

Page 11

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee) REGISTERED NUMBER: 744229

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
24
Total net assets		 88,602
436,071
2,576,331
3,101,004
(216,849)		 2023
£
3,033,760
3,033,760
2,884,155
5,917,915
5,917,915
-
5,917,915		 90,574
158,318
2,910,649
3,159,541
(219,903)		 2022
£
3,201,616
3,201,616
2,939,638
6,141,254
6,141,254
(178,000)
5,963,254

Page 12

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 744229

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

Note
Charity funds
Restricted funds:
Restricted funds - Revenue
18
Restricted funds - Capital
18
Total restricted funds
18
Unrestricted funds
Unrestricted funds excluding pension
reserve
18
Pension reserve
18
Total unrestricted funds
18
Total funds		 1,020,231
1,941,625
2,956,059
-		 2023
£
2,961,856
2,956,059
5,917,915		 1,021,413
2,017,714
3,102,127
(178,000)		 2022
£
3,039,127
2,924,127
5,963,254

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Directors and signed on their behalf by:

KR Rigg

Date: 2 September 2023

The notes on pages 17 to 42 form part of these financial statements.

Page 13

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 744229

SOCIETY BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
24
Total net assets		 56,665
1,137,025
1,835,121
3,028,811
(198,667)		 2023
£
3,033,760
2
3,033,762
2,830,144
5,863,906
5,863,906
-
5,863,906		 56,665
600,846
2,391,514
3,049,025
(194,927)		 2022
£
3,201,616
2
3,201,618
2,854,098
6,055,716
6,055,716
(178,000)
5,877,716

Page 14

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 744229

SOCIETY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

Note
Charity funds
Restricted funds:
Restricted funds - Revenue
18
Restricted funds - Capital
18
Total restricted funds
18
Unrestricted funds
Unrestricted funds excluding pension
reserve
18
Pension reserve
18
Total unrestricted funds
18
Total funds		 1,020,231
1,941,625
2,902,050
-		 2023
£
2,961,856
2,902,050
5,863,906		 1,021,413
2,017,714
3,016,589
(178,000)		 2022
£
3,039,127
2,838,589
5,877,716

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Directors and signed on their behalf by:

KR Rigg

Date: 2 September 2023

The notes on pages 17 to 42 form part of these financial statements.

Page 15

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 17 to 42 form part of these financial statements		 2023
£
(289,465)
(44,853)
(44,853)
(334,318)
2,910,649
2,576,331		 2022
£
337,048
(35,760)
(35,760)
301,288
2,609,361
2,910,649

Page 16

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. General information

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) and the Companies Act 2006.

The Tramway Museum Society 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.

The Society is able to continue to cater for significant customer levels and to support the exhibits only as a result of the activities disclosed in the accounts, combined with a major and unrecorded input of voluntary labour from its members.

The financial statements have been prepared on a going concern basis as the Directors believe that no material uncertainties exist. The Directors have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. Accounting policies

2.1 Income

All income is recognised once the Society has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably, that being when the charity has been notified of the amounts and the settlement date in writing.

Donations and grants are credited to the Statement of Financial Activities (SOFA) as they become due.

Annual subscriptions are apportioned to calendar years and include the income tax reclaimable in respect of those under gift aid. Subscriptions for life membership are credited in full in the years of receipt. Although this is not in accordance with the recommendations of the SORP, the number of life members is small and the Board considers any amortisation of the life membership income would not be material to the figures.

Turnover comprises revenue recognised by the charity in respect of goods and services supplied during the year, exclusive of Value Added Tax.

Turnover from shop, food and drink sales is recognised at the date of supply.

Several independent organisations exist for the purpose of generating resources to be used on behalf of the Society. The activities of these organisations are recorded in these accounts only to the extent of cash received from them by the Society.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Directors' Report.

Page 17

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.2 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the principal categories of charitable and other expenditure rather than the type of expense, in order to provide more useful information to users of the financial statements.

Expenditure includes any VAT which cannot be fully recovered and is included within the costs of activities.

Charitable expenditure and the costs of the generating funds comprise direct expenditure including direct staff costs attributable to the activity. Where costs cannot be directly attributed, including administration or support costs, they have been allocated to activities on a basis consistent with the use of the resource.

Support costs are those that assist the work of the Society but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Society. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The Museum uses many of its key exhibits as operating assets. Because the historic value of the tramcars is the prime justification for the Museum's existence, the workshop expenditure on them is at a much higher level than would be needed if purely commercial considerations applied.

All workshop costs are charged to tramway operation, except for those identified as tramcar restoration. The treatment of tramcar restoration is described in accounting policy 2.6.

2.3 Government grants

Government grants are recognised in income when the grant proceeds are received or receivable unless future performance-related conditions are specified that have not been met. Grants received before the income recognition criteria are satisfied are recognised as a liability.

2.4 Basis of consolidation

The financial statements consolidate the accounts of The Tramway Museum Society and its subsidiary undertaking.

The Society has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.

2.5 Tangible fixed assets and depreciation

The value of fixed assets represents cash paid by the Society, and does not take into account donations in kind, or members' voluntary labour.

Page 18

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation (continued)

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Land - Nil Assets in course of construction - Nil Buildings - 2% or 10% on cost Woodland Walk and Sculpture - 10% on cost Trail Permanent exhibition - 10% on cost Permanent way and overhead - 10% on cost - Plant and equipment, including 10%, 20% or 33.3% on cost temporary buildings dependent on the anticipated life of the asset IT equipment - 33.3% on cost Motor vehicles - 25% on cost

2.6 Heritage assets

The Society maintains 75 tramcars and associated artefacts in support of its objective to protect these historic vehicles for the benefit of future generations. The Directors consider that owing to the unique nature of the collection and the absence of an open market for these items, conventional valuation approaches lack sufficient reliability and costs of any valuations obtained would be excessive compared with the additional benefits derived by the Society and users of the accounts. As a result, no value has been reported for these assets in the Society's Balance Sheet.

Expenditure on major restoration

The costs of associated major repairs of tramcars is reported in the SOFA in the year they are incurred. Tramcar restoration is defined as work done on a major element of each tramcar (body, electrical, mechanical) to make it operable, or, if body only, exhibitable, for ten years. The cost of remedying defects coming to light within two years of the tramcar leaving the workshop is also charged to tramcar restoration. Although of a capital nature, the cost of tramcar restoration is written off each year to the SOFA.

2.7 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.8 Stocks

Stocks represent goods for resale and rail for future use and are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items. Cost is based on the latest purchase invoice value.

Rail stock is to be used on future projects and repair work.

Page 19

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.9 Taxation

The Society is an exempt charity within the meaning of Schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

The subsidiary pays all taxable profits arising in a reporting period to the Society under the gift aid scheme.

At the reporting date there was no legal obligation in place for the subsidiary to make this gift aid payment, although prior to the reporting date the subsidiary’s board had indicated its intention to pay the taxable profits to the Society in respect of the reporting period. The payment is expected to be made within 9 months of the end of the reporting date.

The accounting policy for gift aid payments results in the subsidiary recognising a taxation charge on its profits for the year. However, the application of the exception under paragraph 29.14A of FRS 102 provides relief in respect of the accounting for the tax charge. This results in an overall £nil charge for tax in the SOFA. This exception is only applicable as it is probable that the gift aid payment will be made by the subsidiary to the Society within 9 months of the reporting date.

2.10 Pensions

The Society participates in the Derbyshire County Council local government pension scheme which is a defined benefit plan. Under defined benefit plans, the employer’s obligation is to provide the agreed benefits to current and former employees, and actuarial risk (that benefits will cost more or less than expected) and investment risk (that returns on assets set aside to fund the benefits will differ from expectations) are borne, in substance, by the employer. The Society recognises a liability for its obligations under the defined benefit plan net of plan assets. This net defined benefit liability is measured as the estimated amount of benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value of plan assets. The calculation is performed by a qualified actuary using the projected unit credit method. Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the Society is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.

The Society also operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Page 20

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.11 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Directors.

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

Designated funds comprise unrestricted funds that have been set aside by the Directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Society 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. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in the notes to these financial statements, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 March 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Critical areas of judgment:

Legacy income is only recognised where entitlement has been established, there is probability of receipt and the amount recoverable can be estimated with sufficient accuracy. The position on each legacy is reviewed following receipt of correspondence from the executors, which substantially determines whether the income recognition criteria has been satisfied.

Page 21

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Income from donations and legacies

Unrestricted
funds
2023
£
Government grants
Coronavirus Job Retention Scheme
-
Amber Valley Borough Council
-
ACE grant
-
-
Donations and legacies
381,521
Members' subscriptions
39,665
Grants
-
Sundry receipts
17,940
439,126
439,126
Total 2022
303,801		 Restricted
funds -
Revenue
2023
£
-
-
-
-
51,045
-
-
-
51,045
51,045
142,499		 Total
funds
2023
£
-
-
-
-
432,566
39,665
-
17,940
490,171
490,171
446,300		 Total
funds
2022
£
-
24,000
204,746
228,746
155,793
47,704
10,000
4,057
217,554
446,300

5. Income from charitable activities

Unrestricted
funds
2023
£
Admission
913,803
Education
2,579
Library income
1,202
917,584
Total 2022
964,016		 Total
funds
2023
£
913,803
2,579
1,202
917,584
964,016		 Total
funds
2022
£
958,671
2,271
3,074
964,016

Page 22

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2023
£
Retail
187,433
Catering
277,143
464,576
Total 2022
469,356
Expenditure on raising funds
Retail costs
Catering costs
Fundraising costs
Administration		 Total
funds
2023
£
187,433
277,143
464,576
469,356
2023
£
163,308
282,927
2,137
41,370
489,742		 Total
funds
2022
£
194,811
274,545
469,356
2022
£
149,804
246,793
9,204
39,986
445,787

7. Expenditure on raising funds

Page 23

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Admission and customer costs
770,413
Collections and research
131,570
Museum costs
592,712
1,494,695
Total 2022
1,367,548		 Restricted
funds
2023
£
21,472
66,896
39,988
128,356
215,650		 Total
2023
£
791,885
198,466
632,700
1,623,051
1,583,198		 Total
2022
£
783,763
263,853
535,582
1,583,198

Summary by expenditure type

Admission and customer costs
Collections and research
Museum costs
Total 2022		 Staff costs
2023
Depreciation
2023
£
£
383,002
94,068
59,021
29,325
245,299
80,120
687,322
203,513
683,815
249,238		 Other costs
2023
£
314,815
110,120
307,281
732,216
650,145		 Total
2023
£
791,885
198,466
632,700
1,623,051
1,583,198		 Total
2022
£
783,763
263,853
535,582
1,583,198

Page 24

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. Analysis of expenditure by activities

Admission and customer costs
Collections and research
Museum costs
Total 2022		 Activities
undertaken
directly
2023
£
728,059
174,747
580,314
1,483,120
1,455,470		 Support
costs
2023
£
63,826
23,719
52,386
139,931
127,728		 Total
funds
2023
£
791,885
198,466
632,700
1,623,051
1,583,198		 Total
funds
2022
£
783,763
263,853
535,582
1,583,198

10. Auditors remuneration

- The auditors' remuneration amounts to an auditor fee of £5,600 (2022 £5,200) , and accountancy and taxation work of £3,000 ( 2022 - £3,600 ).

11. Directors' remuneration and expenses

During the year, no Directors received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 March 2023, expenses totalling £ NIL were reimbursed or paid directly to Directors (2022 - £NIL to Director) .

In addition the Directors have personally incurred expenses which they have not reclaimed from the Society.

Page 25

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 Group
2023
£
789,719
64,967
39,415
894,101		 Group
2022
£
778,092
55,323
42,232
875,647		 Charity
2023
£
789,719
64,967
39,415
894,101		 Charity
2022
£
778,092
55,323
42,232
875,647

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

Finance and administration
Sales outlets
Others		 Group
2023
No.
4
16
24
44		 Group
2022
No.
5
12
22
39		 Charity
2023
No.
4
16
24
44		 Charity
2022
No.
5
12
22
39

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

The total remuneration received by key management personnel is £58,241 (2022: £56,918). The Society considers its key management personnel comprise those who are making day-to-day delegated executive decisions.

Page 26

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Tangible fixed assets

Group and Charity

Included in cost of land and buildings is freehold land of £64,897 (2022: £64,897) which is not depreciated. For insurance purposes, tramcars are assessed at sums determined by the Board. Tramcars awaiting restoration are insured at a nominal £1,000 each plus inflation and other tramcars at higher figures based on the amounts spent on restoration, these figures being adjusted for inflation from time to time.

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
4,520,608
-
4,520,608
1,782,044
101,812
1,883,856
2,636,752
2,738,564		 Permanent
exhibition
£
1,482,712
-
1,482,712
1,384,072
19,934
1,404,006
78,706
98,640		 Permanent
way and
overhead
£
1,066,171
21,700
1,087,871
797,614
56,331
853,945
233,926
268,557		 Plant and
machinery
£
780,691
23,153
803,844
692,768
30,725
723,493
80,351
87,923		 Computer
equipment
£
187,147
-
187,147
179,215
3,907
183,122
4,025
7,932		 Total
£
8,037,329
44,853
8,082,182
4,835,713
212,709
5,048,422
3,033,760
3,201,616

Heritage assets not recognised in the balance sheet

The Society maintains 75 tramcars and associated artefacts which were acquired over a period of time. Other tramway-related artefacts are also held by the Society. Restoration work is carried out in order to bring the tramcars into a display condition and once they have reached this condition they are maintained in a state of good repair.

Acquisition, disposal, preservation and management

The acquisition, disposal, preservation and management of the Society's collection are governed in accordance with the Museum's Acquisition, Disposal and Conservation policies. Collection records are maintained in accordance with the Museum standards laid out in the Museum Documentation Association's "SPECTRUM" guidelines.

Page 27

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Tangible fixed assets (continued)

Access to the Society's collections is available during advertised Museum opening times and by prearranged appointment. The Society's policies and procedures were overseen and approved by the Museums, Libraries and Archives Council accreditation scheme. The Society has achieved full Accredited status.

14. Fixed asset investments

Society
Cost
At 1 April 2022
At 31 March 2023		 Investments
in
subsidiary
companies
£
2
2

Principal subsidiaries

The following was a subsidiary undertaking of the Society:

Name Company Registered office or principal Class of Holding
number place of business shares
Tramway Museum Services 06058747 Crich Tramway Village, Crich, Ordinary 100%
(R&C) Limited Matlock, Derbyshire, DE4 5DP

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
Tramway Museum Services 464,576 (410,567) 54,009 54,011
(R&C) Limited

Page 28

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15. Stocks

Group
2023
£
Goods for resale
31,937
Permanent way
56,665
88,602
16.
Debtors
Group
2023
£
Amounts owed by group undertakings
-
Other debtors
304,645
Prepayments and accrued income
122,785
Tax recoverable
8,641
436,071
17.
Creditors: Amounts falling due within one year
Group
2023
£
Trade creditors
153,345
Accruals and deferred income
63,504
216,849
Group
2023
£
Deferred income brought forward
35,093
Resources deferred during the year
33,234
Amounts released from previous periods
(35,093)
33,234		 Group
2022
£
33,909
56,665
90,574
Group
2022
£
-
70,011
81,824
6,483
158,318
Group
2022
£
158,440
61,463
219,903
Group
2022
£
31,768
35,093
(31,768)
35,093		 Charity
2023
£
-
56,665
56,665
Charity
2023
£
700,954
304,645
122,785
8,641
1,137,025
Charity
2023
£
135,163
63,504
198,667
Charity
2023
£
35,093
33,234
(35,093)
33,234		 Charity
2022
£
-
56,665
56,665
Charity
2022
£
442,528
70,011
81,824
6,483
600,846
Charity
2022
£
133,464
61,463
194,927
Charity
2022
£
31,768
35,093
(31,768)
35,093

Deferred income relates to advance subscriptions and prepaid tickets.

Page 29

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Business
Interruption
Contingency
Fund (xiii)
New Cafe Fund
(xiv)
Mobile Elevating
Work Platform
(MEWP) Fund
(xv)
General funds
General funds
Pension reserve
Total
Unrestricted
funds
Restricted
funds -
Revenue
Cabmen's
Shelter
Track Fund
Subscriber Plus
Fund (vi)
Disabled Access		 Balance at 1
April 2022
£
520,000
828,694
-
1,348,694
1,753,433
(178,000)
1,575,433
2,924,127
9,620
11,948
29,875
15,599		 Income
£
-
-
-
-
1,825,369
-
1,825,369
1,825,369
-
-
3,353
-		 Expenditure
£
-
-
-
-
(1,971,437)
(13,000)
(1,984,437)
(1,984,437)
(7,327)
-
-
-		 Transfers
in/out
£
(120,000)
9,835
100,000
(10,165)
10,165
-
10,165
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
191,000
191,000
191,000
-
-
-
-		 Balance at
31 March
2023
£
400,000
838,529
100,000
1,338,529
1,617,530
-
1,617,530
2,956,059
2,293
11,948
33,228
15,599

Page 30

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - current year (continued)

Audience
Development
Edinburgh 35
Blackpool 236
Manchester
replica (vii)
Sheffield Trams
(viii)
P.C.C. fund (ix)
Car no: 5 appeal
Heavy
Restoration (xi)
Depots/
Exhibition (xii)
Tramcar
restoration -
LCC 1 (x)
Cadisch -
Tramcar
acquisition and
restoration
Blackpool 298
Newcastle 102
Other restricted
funds under £5k
Restricted
funds - Capital
Barnsley Bus
No. 5
Clay Cross
Extension (i)
Workshop
Extension (ii)		 Balance at 1
April 2022
£
5,600
20,546
7,065
213,236
348,626
19,861
6,409
27,392
194,894
-
90,000
-
-
20,742
1,021,413
45,500
29,731
181,131		 Income
£
-
-
-
-
-
-
-
-
-
25,728
-
2,491
16,171
3,342
51,085
-
-
-		 Expenditure
£
-
-
-
(550)
-
-
-
-
-
(25,728)
-
(2,491)
(16,171)
-
(52,267)
(6,500)
(1,004)
(5,898)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 March
2023
£
5,600
20,546
7,065
212,686
348,626
19,861
6,409
27,392
194,894
-
90,000
-
-
24,084
1,020,231
39,000
28,727
175,233

Page 31

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - current year (continued)

Balance at
Balance at 1 Transfers Gains/ 31 March
April 2022 Income Expenditure in/out (Losses) 2023
£ £ £ £ £ £
Library
Extension (iii) 655,503 - (20,952) - - 634,551
Stone Workshop
(iv) 750,314 - (19,140) - - 731,174
Depot
Improvements
(xii) 177,878 - (3,952) - - 173,926
Victoria Park (v) 71,668 - (1,837) - - 69,831
Woodland Walk/
Wakebridge 52,304 - (8,152) - - 44,152
Holroyd Smith
Exhibition 46,615 - (7,645) - - 38,970
Bandstand
Trackwork 7,070 - (1,009) - - 6,061
2,017,714 - (76,089) - - 1,941,625
Total Restricted
funds 3,039,127 51,085 (128,356) - - 2,961,856
Total of funds 5,963,254 1,876,454 (2,112,793) - 191,000 5,917,915
Statement of funds - prior year
Balance at
Balance at Transfers Gains/ 31 March
1 April 2021 Income Expenditure in/out (Losses) 2022
£ £ £ £ £ £
Unrestricted
funds
Designated
funds
Business
Interruption
Contingency
Fund (xiii) 545,000 - - (25,000) - 520,000

Page 32

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - prior year (continued)

New Cafe Fund
(xiv)
Mobile Elevating
Work Platform
(MEWP) Fund
(xv)
General funds
General funds
Pension reserve
Total
Unrestricted
funds
Restricted
funds -
Revenue
Cabmen's
Shelter
Track Fund
Subscriber Plus
Fund (vi)
Disabled Access
Audience
Development
Edinburgh 35
Blackpool 236
Manchester
replica (vii)		 Balance at
1 April 2021
£
818,694
-
1,363,694
1,796,753
(334,000)
1,462,753
2,826,447
13,562
11,948
25,885
15,599
5,600
20,546
7,065
213,236		 Income
£
10,000
-
10,000
1,727,015
-
1,727,015
1,737,015
-
-
3,990
-
-
-
-
-		 Expenditure
£
-
-
-
(1,795,335)
(18,000)
(1,813,335)
(1,813,335)
(3,942)
-
-
-
-
-
-
-		 Transfers
in/out
£
-
-
(25,000)
25,000
-
25,000
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
174,000
174,000
174,000
-
-
-
-
-
-
-
-		 Balance at
31 March
2022
£
828,694
-
1,348,694
1,753,433
(178,000)
1,575,433
2,924,127
9,620
11,948
29,875
15,599
5,600
20,546
7,065
213,236

Page 33

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - prior year (continued)

Sheffield Trams
(viii)
P.C.C. fund (ix)
Car no: 5 appeal
Heavy
Restoration (xi)
Depots/
Exhibition (xii)
Tramcar
restoration -
LCC 1 (x)
Cadisch -
Tramcar
acquisition and
restoration
Blackpool 298
Newcastle 102
Other restricted
funds under £5k
Restricted
funds - Capital
Barnsley Bus
No. 5
Clay Cross
Extension (i)
Workshop
Extension (ii)
Library
Extension (iii)
Stone Workshop
(iv)
Depot
Improvements
(xii)		 Balance at
1 April 2021
£
348,626
19,211
6,409
27,392
194,894
-
90,000
-
-
18,502
1,018,475
52,000
30,735
187,029
676,455
769,454
181,830		 Income
£
-
-
-
-
-
15,498
-
106,084
14,037
2,890
142,499
-
-
-
-
-
-		 Expenditure
£
-
-
-
-
-
(15,498)
-
(106,084)
(14,037)
-
(139,561)
(6,500)
(1,004)
(5,898)
(20,952)
(19,140)
(3,952)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 March
2022
£
348,626
19,211
6,409
27,392
194,894
-
90,000
-
-
21,392
1,021,413
45,500
29,731
181,131
655,503
750,314
177,878

Page 34

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - prior year (continued)

Victoria Park (v)
Woodland Walk/
Wakebridge
Holroyd Smith
Exhibition
Bandstand
Trackwork
Total Restricted
funds
Total of funds		 Balance at
1 April 2021
£
73,505
60,456
54,260
8,079
2,093,803
3,112,278
5,938,725		 Income
£
-
-
-
-
-
142,499
1,879,514		 Expenditure
£
(1,837)
(8,152)
(7,645)
(1,009)
(76,089)
(215,650)
(2,028,985)		 Transfers
in/out
£
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
174,000		 Balance at
31 March
2022
£
71,668
52,304
46,615
7,070
2,017,714
3,039,127
5,963,254

Page 35

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Each restricted fund has sufficient resources to enable the fund to be applied in accordance with the restrictions imposed. A summary of the nature and purpose of each of the more significant funds is set out below.

Restricted Funds

Designated Funds

Transfers

The transfers reflect the reduction in the Business Interruption Fund and the creation of the MEWP Fund.

Page 36

THE TRAMWAY MUSEUM SOCIETY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Restricted funds
- Revenue
Restricted funds
- Capital		 Balance at 1
April 2022
£
1,348,694
1,575,433
1,021,413
2,017,714
5,963,254		 Income
£
-
1,825,369
51,085
-
1,876,454
Income
£
10,000
1,727,015
142,499
-
1,879,514		 Expenditure
£
-
(1,984,437)
(52,267)
(76,089)
(2,112,793)
Expenditure
£
-
(1,813,335)
(139,561)
(76,089)
(2,028,985)		 Transfers
in/out
£
(10,165)
10,165
-
-
-
Transfers
in/out
£
(25,000)
25,000
-
-
-		 Gains/
(Losses)
£
-
191,000
-
-
191,000
Gains/
(Losses)
£
-
174,000
-
-
174,000		 Balance at
31 March
2023
£
1,338,529
1,617,530
1,020,231
1,941,625
5,917,915
Balance at
31 March
2022
£
1,348,694
1,575,433
1,021,413
2,017,714
Summary of funds - prior year
Designated
funds
General funds
Restricted funds
- Revenue
Restricted funds
- Capital		 Balance at
1 April 2021
£
1,363,694
1,462,753
1,018,475
2,093,803
5,938,725
5,963,254

Page 37

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
1,092,135
Current assets
2,080,773
Creditors due within one year
(216,849)
Total
2,956,059		 Restricted
funds -
Revenue
2023
£
-
1,020,231
-
1,020,231		 Restricted
funds -
Capital
2023
£
1,941,625
-
-
1,941,625		 Total
funds
2023
£
3,033,760
3,101,004
(216,849)
5,917,915

Free reserves equal £2,956,059 minus £1,092,135 = £1,863,924

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Unrestricted
funds
2022
£
1,183,902
2,138,128
(219,903)
(178,000)
2,924,127		 Restricted
funds -
Revenue
2022
£
-
1,021,413
-
-
1,021,413		 Restricted
funds -
Capital
2022
£
2,017,714
-
-
-
2,017,714		 Total
funds
2022
£
3,201,616
3,159,541
(219,903)
(178,000)
5,963,254

Page 38

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Defined benefit pension movement
Net cash provided by/(used in) operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1 April
2022
£
Cash at bank and in hand
2,910,649
2,910,649		 Group
2023
£
(236,339)
212,709
1,972
(277,753)
(3,054)
13,000
(289,465)
Group
2023
£
2,576,331
2,576,331
Cash flows
£
(334,318)
(334,318)		 Group
2022
£
(149,471)
257,477
(16,161)
115,297
111,906
18,000
337,048
Group
2022
£
2,910,649
2,910,649
At 31 March
2023
£
2,576,331
2,576,331

Page 39

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Pension commitments

The Society participates in the Derbyshire County Council Pension Scheme, a multi-employer defined benefit final salary scheme. The scheme is administered for the benefit of Local Authority employees and other bodies and is managed in accordance with the Local Government Pension Scheme Regulations 1997 (as amended).

Contributions to the scheme are determined with advice of independent qualified actuaries on the basis of triennial valuations using the projected unit method.

The employer's contribution rate was 8.8% of pensionable pay with an employee's contribution rate of 5.9% or 6.5% of pensionable pay.

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

Discount rate
Future salary increases
Future pension increases
Mortality rates (in years)
- for a male aged 65 now
- at 65 for a male aged 45 now
- for a female aged 65 now
- at 65 for a female aged 45 now		 At 31 March
2023
%
4.75
4.00
3.00		 At 31 March
2022
%
2.70
3.90
3.20
At 31 March
2023
Years
21.0
21.8
24.0
25.5		 At 31 March
2022
Years
21.1
22.2
23.8
25.6
Sensitivity analysis
At 31 March At 31 March
2023 2022
£ £
Discount rate -0.1% 18,000 29,000

Page 40

(A company limited by guarantee)

THE TRAMWAY MUSEUM SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Pension commitments (continued)

The Group's share of the assets in the scheme was:

Equities
Corporate bonds
Property
Cash and other liquid assets
Total fair value of assets		 At 31 March
2023
£
834,240
278,080
101,120
50,560
1,264,000		 At 31 March
2022
£
855,000
272,000
104,000
65,000
1,296,000

The actual return on scheme assets was -3.2% (2021 - 7.1%) .

The amounts recognised in the Consolidated statement of financial activities are as follows:

Current service cost
Interest income
Interest cost
Total amount recognised in the Consolidated statement of financial
activities		 2023
£
(25,000)
34,000
(39,000)
(30,000)		 2022
£
(27,000)
24,000
(31,000)
(34,000)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Actuarial gains
Benefits paid
Current service cost
Closing defined benefit obligation		 2023
£
1,474,000
39,000
3,000
(458,000)
(58,000)
25,000
1,025,000		 2022
£
1,557,000
31,000
3,000
(112,000)
(32,000)
27,000
1,474,000

Page 41

THE TRAMWAY MUSEUM SOCIETY

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Pension commitments (continued)

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Expected return on assets
Actuarial (losses)/gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2023
£
1,296,000
34,000
(267,000)
17,000
3,000
(58,000)
1,025,000		 2022
£
1,223,000
24,000
62,000
16,000
3,000
(32,000)
1,296,000

The current actuarial assumptions and movements have been disclosed above. The corresponding FRS 102 actuarial report recognises a net asset of £239,000. However, the asset has been restricted to £nil on the balance sheet at 31 March 2023 as there is no entitlement or expectation of receipt.

The group expects to contribute £17,000 to its defined benefit pension scheme in 2023.

25. Share Capital

The Society is a charitable company limited by guarantee and has no share capital. Each member undertakes to contribute a maximum of £1 to the assets of the Society, in the event of a winding up.

26. Related party transactions

M C Wright is on the board of trustees of the Tramcar Sponsorship Organisation. During the year ended 31 March 2023 the Society received a grant of £Nil (2022: £3,938) from the organisation for the restoration of Newcastle 102.

27. Controlling party

The Society has no single controlling party.

Page 42