Class Forty Preservation Society Annual Report and Financial Statements Year ended 29 February 2024 Charity number . 326323 Feltons Chartered Accountants Birmingham B13JR
Class Forty Preservation Society Report and financial statements Year ended 29 February 2024 Contents Page Reference and administrative details Report of the trustees Independent Examiner's report on the financial statements Statement of financial activities incorporating income & expenditure account Balance sheet Notes forming part of the financial statements, incorporating statement of accounting policies Other notes to the financial statements
Class Forty Preservation Society Reference and Administrative Details Officers Honorary President.. Richard Bowker C8E Vice President.. Peter Watts Trustees C Elverstone T Rogers G Taylor D Peacock J Wilson S Leighlon P Cameron (resigned 30 June 2023) Management Committee Chairman.. Treasurer- Secretary.. Other Committee Members.. C Elverstone S Leighlon T Rogers G Taylor D Peacock A Williams J Wilson P Cameron (resigned 30 June 20231 Bankers Yorkshire Bank plc Fargate Sheffield S12HE Barclays Bank pl¢ Bury Lancashire BL9 OJN Independent Examiners Feltons Feltons 8 Sovereign Court 8 Graham Street Birmingham B1 3JR Charity Commission Registered Number: 326323 Page 1
Class Forty Preservation Society Report of the trustees Year ended 29 February 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT The Trustees submit their report and financial statements for the year ended 29 February 2024. Organisational Structure Honorary president.. Richard Bowker CBE Vice-president.- Peter Watts Management committee Chairman: Clive Elverstone Treasurer- Steve Leighton Secretary.. Tim Rogers Safety Officer & Designated Safeguarding Lead.. Graham Taylor Head of Operations: John Wilson Head of Commercial and Compliance.. Phil Cameron Appointment of Trustees Trustees are appointed by the members at the Annual General Meeting. OBJECTIVES AND ACTIVITIES Mission Statement To preserve and restore to full working order class 40 diesel locomotives and promote their heritage to the general public in whatever manner is available and practical. Page 2
Class Forty Preservation Society Report of the trustees (continued) Year ended 29 February 2024 Achievements and performance As reported by the Trustees in the last accounts, the Trustees have stabilised the CFPS management, governance, finances and reputation. That stable position has been maintained during the reporting period 2023124 and the accounts presented in this report reflect that. The stated aim of the Committee is to have all three locomotives in operational use, during the year o out of the three have been operational and steps to get the third operational have been made. 401061D306 remains on long term hire to the Severn Valley Railway, offering members numerous opportunities to ride behind their locomotive and earning a steady revenue stream. 401351D335 is still under repair in Bury, however several significant steps have been made. Donations and funds created by the operation of the other locomotives allowed the engineering team to extract the crank from the donated 56 power unit. During the reporting period the team continued to ready the locomotive for its own power unit to be lifted out. 401451D345 in addition to performing on three tours for Pathfinder in the reporting period, began the year with an appearance at the Swanage Railway Diesel Gala, quickly followed in June by being rostered to the prestigious Northern Belle. 40145 also ran on at the diesel gala and CFPS members, day on the East Lancashire Railway. The activity described above is reliant on key behaviours by the society and its members. Namely a stable and well organised society and strong relationships with our operating partners. In the year the strength of that relationship was demonstrated by the appearance of 401451D345 on the Pathfinder Golden Anniversary rail tour and a leg of the prestigious Northern Belle dining train. The accounts presented for the year 2023124 demonstrate that the Society remains on a sound financial footing. Looking ahead, the Committee plans to continue to act out the current approach of seeking to preserve three operational locomotives funded via the finances generated by that activity as well as member subscriptions and donations. Page 3
Class Forty Preservation Society Report of the trustees (continued) Year ended 29 February 2024 PUBLIC BENEFIT We have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. FINANCIAL REVIEW Total income for the year was £78,533 (2023.. £97,324) and total expenditure was £48,382 (2023.. £62,731 } giving a net surplus in the year of £30,151 {2023'. £34,593). During the year, the heritage assets were revalued by the trustees. The subsequent loss on the revaluation of £205.691 is shown in the Statement of Financial Activities. RESERVES POLICY At the year-end the Society had total reserves of £634,210 (2023: £809,750) of which £Nil12023: £Nil) were restricted and £634,210 (2023: £809,750) were unrestricted. Included within unrestricted funds is a revaluation reserve totalling £276,492 (2023 . £482,183) which arose on the restatement in value of the heritage assets disclosed in note 11. The Society aims to maintain and increase reserves commensurate with the Mission Statement and Objectives of the Society. Page 4
Class Forty Preservation Soclety Report of the trustees (continued) Year ended 29 February 2024 STATEMENT OF TRUSTEES, RESPONSIBILITY The trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generalty Accepted Accounting Practice). The law applicable to charlties in England & Wales requires the trustees to prepare financial statements for each financial year which gNe a true and fair view of the slate of affaits of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistenlly: observe the methods and principles in the Charities SORP 2019 FRS 102,. make judgements and estimales that are reasonable and pruden{ stste whether applicable accounting standards have been followed, subject to any material departures disGlosed and explained in the financial statements: prepare the financial statements on the going Concern basis unless il is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping accounting records that disclose with reasonable accuracy al any time the financial position of the charity and enable them lo ensure that the financial statements comply with the Charities Aet 2011, the Charity (Accounts Reports) Regulations 2008 and the provision of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and deleclion of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdorn governing the preparation and dissemination of financial ststements may differ from legislation in other jurisdictions. Approved by the Board on 14 November 2024 and signed on ils behaff by.. C Elverstone Trustee Page 5
Independent Examiner's Report to the Trustees of Class Forty Preservation Society I report lo the charity trustees on my examinalion of the acwunts of the charity for Ihe year ended 29 February 2024 which are Set out on pages 7 to 16. Responsibilities and basis of report As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('Ihe Act,). I report in respect of my examination of the charivs accounts carried out under seclion 145 of Ihe Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)Ibl of the Act. Independent examiner's statement I have completed my examination. I confimi that no material matters have come to my attention in connection wilh the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the Act- or the accounts do not accord with those records- or the accounts do not comply with the applicable requirements concerning the form and conlent of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other Ihan any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination. 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. Davld W Farnsworth FCA For and on behalf of Feltons Feltons Chartered Accountants 8 Sovereign Court 8 Graham Street Birmingham B13JR 18 November 2024 Page 6
Class Forty Preservation Society Statement of financial activities (including income and expenditure account) for the year ended 29 February 2024 Unrestricted Restricted Total Total funds funds 2024 2023 Notes Income from: Donations Charitable activities Investment income 34,949 43,124 460 34,949 43,124 460 56,571 40,747 Totsl incoming resources 78,533 78,533 97,324 Expendlture on: Raising funds Charitable activities Other 6,028 40.511 1,843 6,028 40,511 1,843 19,400 31,061 12,270 Total resources expended 48,382 48,382 62.734 Net income before transfers 30,151 30.151 34,593 Gross transfers beeen funds 16 Other recognised gainslllosses) Losses from revaluation of heritage assels 16 1205,6911 (205.691) Net movement in funds {175.5401 (175,540) 34,593 Fund balances brought fonvard At 28 February 2023 809,750 809,750 775,157 Fund balances carrled forward At 29 February 2024 634,210 634,210 809,750 The statement of financial activities includes all gains and losses recognised in the year. All of the charity's activities derive from continuing operations during the above financial periods. Page 7
Class Forty Preservatlon Soclety Charity number . 326323 Balancè sheet as at 29 February 2024 2024 2023 Nolos Flxed assets Tangible assets Herilage as5els Inveslmenls 10 952 475,000 626 880,691 164 681.481 12 475,952 Current assets Stocks at cost Debtor5 and Prepaymenls Cash al bank 13 14 54.833 40,767 67.250 162,850 54.245 39,354 50.016 143.615 Credltors: amounts falllng due wilhln one year 15 4,592 15.346 Net current assets 158.258 128.269 634.210 809.750 Funds of the ¢harfty: Funds - Unre51fiCted Reslricted - Revalualion reseNe 16 16 16 357.718 327.567 276.492 482.183 634.210 809.750 Total funds 634.210 809,750 The financlal stalemenls were approved by the Management Commlllee on 14 November 2024 and were sl9ned on behall of the Management Commlitee by.. S Lelghlon Trustee Page 8
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 1. Accounting policies Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charilies- 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 issued in October 2019. the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. Class Forty Presentation Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially measured al historical costs or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are prepared on a going concem basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1. 1.2 Subscriptions This represents actual monies received during the financial year. 1.3 Fund accounting General unrestricted funds comprise accumulated surpluses and deficits on the general funds. They are available for use at the discretion of the Management Committee in furtherance of Class Forty Preservation SoGiety's general charitable objectives. Restricted funds are created when donations are made for a particular area or purpose, the use of which is restricted to that area or purpose. Expenditure is charged to the Statement of Financial Activilies when incurred. 1.4 Taxation As a charity, Class Forty Preservation Society is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to ils available objects. No tax charges have arisen in the charity. 1.5 Income resources Voluntary income including donations, gifts and legacies and grants that provide core funding or are of general nature are recognised where there is an entitlement, it is probable that the income will be received, and the amount can be measured with sufficient reliability. Page 9
Class Forty Preservation wociety Notes to the financial statements for the year ended 29 February 2024 (continued) 1. Accounting policies (continued} 1.6 Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activi ies on a basis consistent wilh the use of the resources. Fundraising costs are those incurred in seeking voluntary contributions. Support costs are those costs directly in support of expenditure on Ihe objects of the charity that cannot be allocated to specific activities. These include staff costs, general premises and office expenses, depreciation and costs of governing the charily. 1.7 Tangible fixed assets and depreciation Tangible fixed assets costing more than £250 are capilalised and included at cost or valuation including any incidental expenses of acquisition. Tangible fixed assets are staled at cost less depreciation. Deprecialion is provided at rates calculated lo write off the cost less estimated residual value of each asset over its expected useful life as follows.. Plar,t and equipment Vans 20% straight line 1 OOA straight line 1.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepaymen+s are valued at the amount repaid net of any trade discounts due. 1.9 Heritage assets Heritage assets are recognised on the balance sheet and initially measured at cost ¥vhen purchased or if donated, their valuation. Assets are subsequently slated at cost or valuation less accumulated impairment losses. Acquisitions only arise when donated to the charity or if it is believed that they will further the charity's objectives. Once acquired they will be preserved by the charity in order to keep their historical, artistic, scientific, technological, geographical or environmental qualilies to such a high level as to contribute to knowledge and culture. 14eritage assets are to be held for the foreseeable future. No depreciation is charged on the heritage assets. 1.10 Cash at bank and in htsThnd Cash at bank and in hand includes cash and short term highly liquid investments wilh a short maturity of thrae months or less from the date of acqui51tion or opening of the deposit or similar account. Page 10
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 (continued) 1. Accounting policles (continiied) 1.11 Credltors and provlslons Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 1.12 Golng concern The trustees have considered the level of funds held and expected level of income and expenditure for 12 months from authorising these financial statements. These figures show the charity has sufficient cash and reserves to continue operations for the foreseeable future. The financial statement have therefore been prepared on a going concern basis. 2. Donatlons Unrestrlcted Restricted Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Donations Subscriptions 27.640 7,309 27,640 47,437 9,140 34,949 34.949 56.577 In 2023. of the total income from donakn'ons, £56,577 was to unrestricted funds and £Nil was to restricted funds. 3. Charitable actlvltles Unrestricted Restrlcted Funds Funds 2024 2024 Totsl Funds 2024 Total Funds 2023 Product sales Loco hire 11,537 31,587 11.537 31,587 8.437 32.310 43,124 43,124 40.747 In 2023. of the total incorria from charitable activities, £40.747 was to unrestricted funds and £Nil was to restricted funds. Page 11
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 (continued) 4. Raising funds Unrestricted Restricted Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Cost of goods for resale Train hire Magazine printing 1,245 1,100 3,683 1,245 1,100 3,683 14,572 1,640 3,188 6,028 6.028 19.400 In 2023. of the total expenditure for rasing funds, £19,400 was to unrestricted funds and £Nil was to restricted funds. 5. Charitable activities Unrestricted Restrictsd Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Loco maintenance Insurance Postage. telephone and stationery Volunteer training and welfare Maintenance and repairs Room hire Bank charges and interest Motor expenses Subscriptions Sundry Travelling Depreciation Lossl(Profit) on disposals of assets 20,295 13,569 951 20.295 13.569 951 11,025 12.063 4,302 1,354 457 733 150 154 320 765 2.300 277 540 457 733 150 154 320 765 2,300 277 540 249 1,002 588 1,240 874 {1,636) 40,511 40.511 31,061 In 2023, of the total expenditure for charitable activities. £31,061 was to unrestricted funds and £Nil was to restricted funds. Page 12
Class Forty PreseNatlon Society Notes to the financial statements for the year ended 29 February 2024 (continued> 6. Other Unrestricted Restricted Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Accountancy and bookkeeping Other professional charges Computer expenses 1,350 1,350 10,740 500 1,030 493 493 1.843 1,843 12.270 In 2023. of the total other expenditure. £12.270 was to unrestricted funds and £Nil was to restricted funds. 7. Surplus for the year The surplus for the year is shown after charging.. Total 2024 Total 2023 Independent examination fee Depreciation 1.350 277 1,3QO 874 8. Locomotlve maintenance Total 2024 Total 2023 Opening stock of spares Expenduture- General 53.995 20,295 74,290 54,583 19.707 49,733 11,025 60,758 53,995 6,763 Less.. Closing stock of spares 9. Trustees remuneratlon During the year no trustees received any remuneration {2023 '. £Nil) There were no travelling e.Ypense reimbursments during the year12023 - £157 reimbursed to trustees). Page 13
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 (continued) 10. Tangible fixed assets Plant & Equlpment Van Total Cost At 1 March 2023 Additions 8,979 604 2.703 11,682 604 At 29 February 2024 9.583 2,703 12,286 Depreciation At 1 March 2023 Charge for the year 8,354 277 2,703 11,057 277 At 29 February 2024 8.631 2,703 11,334 Net book values At 29 February 2024 952 952 At 28 February 2023 625 625 11. Heritage assets Assets held Assets held at cost at valuation 2024 2024 Tolal 2024 Carrying amount At 1 March 2023 Impairment Depreciation 5,691 15.691) 675,000 1200.0001 680.691 1205.6911 475.000 475,000 At 29 February 2024 the trustees believed it was appropriate to revalue the heritage a5sels, so their carrying amount is more accurately reflected in the financial statements. 12. Investments Investments represent the cost ol acquisition of the whole of the issued share capital of CFPS Mainline Limited, a company registered in England and Wales, and also the formation costs ofthe cornpany. The company had no transactions in the year. During the year, the investment of £164 was written off. Page 14
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 (continued) 13. Stocks Stock has been valued at the lower of cost and net realisable value and comprises.. 2024 2023 Goods held for Sale Spares 250 54,583 250 53,995 54,833 54.245 14. Debtors Total 2024 Total 2023 Trade debtors Inter-company balance Gift aid Prepayments 1,584 8,438 376 32,540 24,877 14,306 40,767 39,354 15. Creditors - amounts falling due within one year 2024 2023 Creditors from operations Accruals VAT 1,282 1,902 1,408 2,049 11,929 1,368 4,592 15.346 16. Analysis of funds Balance at 1 MarGh 2023 Gains, Balance at losses and 28 Febru&ry transfers 2024 Incoming resources Resources expended Unrestricted funds General funds Revaluation reserve 327,567 482,183 78,533 148,3821 357,718 276.492 1205,691) Total Unrestricted funde 809.750 78.533 48,382 205,691 634.210 Restricted funds General funds Total funds 809,750 78,533 48,382 205,691 634,210 Page 15
Class Forty Preservation Society Notes to the financial statements for the year ended 29 February 2024 (continued> 17. Analysis of net assets between funds Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Tangible assets Heritsge assets Investments Current assets Current liabilities 952 475,000 952 475,000 626 680,691 164 143,615 {15,3461 162,850 (4,592) 182,850 (4.5921 Total net assets 634.210 634.210 809,750 18. Related party transactions As described in note 12, CFPS Mainline Limited was the Society's wholly owned subsidiary company. During the year. the investment of £164 was written off. Balances due from CFPS Mainline Limited 2024 2023 Loan account 376 Donations totalling £960 were received from three trustees during the year12023 .' £680 from three trustees). At the year end £Nil (2023: £10,629) was due to John Stephens, a fomier trustee {resigned 3 March 2022}. Page 16