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2021-02-28-accounts

REGISTERED COMPANY NUMBER: 02060988 (England and Wales) REGISTERED CHARITY NUMBER: 518516

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 28 February 2021 for CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

CHEADLES Chartered Accountants Telegraph House

59 Wolverhampton Road Stafford Staffordshire ST17 4AW

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Contents of the Financial Statements for the Year Ended 28 February 2021

Page
Report of the Trustees 1 to 2
Independent Examiner's Report 3
Statement of Financial Activities 4
Balance Sheet 5
Notes to the Financial Statements 6 to 12
Detailed Statement of Financial Activities 13 to 14

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Report of the Trustees for the Year Ended 28 February 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28 February 2021. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of Chasewater Light Railway & Museum Company Ltd written in 1986 are as follows:

To promote and to further the education of the public in the history of the railway and general transport heritage of the United Kingdom, with special reference to industrial and light railways to the West Midlands area; by the creation and operation of museums of all types and, in furtherance of these objects but not otherwise, by the creation and operation of railways, tramways or other forms of transport.

Significant activities

The activities of Chasewater Light Railway & Museum Company are to run heritage industrial steam and diesel passenger services throughout the year in accordance with the objectives written in 1986, and to provide a museum containing artefacts from the local railways and other associated transport systems to educate the public. The company also acquires new exhibits from the local area and holds regular special events where various aspects of the "colliery line" are shown. The company hold numerous events during the year on top of the standard running services which include the local community and other charitable associations.

Public benefit

All trustees are provided with the guidance issued by the Charity Commission on public benefit. It is felt that we confirm to the current guidance, this is continually under review to ensure compliance.

FINANCIAL REVIEW

Financial position

The financial year ending 28th February 2021 has been the most challenging year ever faced by Chasewater Light Railway & Museum Company. Covid-19 ravaged the entire globe, and we were forced to close our doors when restrictions were implemented.

The trustees held a crisis meeting where many new rules were put in place to protect the railway and its volunteers in line with government rules. This meant that we took the decision to lockdown to the bare minimum of essential volunteers to keep the site ticking over. Security was stepped up due to an increase in theft from heritage railways, with nightly visits taking place.

We received a £10,000 grant from Lichfield District Council to help us keep the railway from going under and also £4,500 from the Arts Council to keep the heat on in the museum. As you can imagine, with a site our size, this did not last long. Following many hours of trawling, we applied for multiple other grants, all of which we did not seem eligible for, for one reason or another.

An idea then sprung to mind from our tea room staff to open a takeaway from one of the sash windows in the main station building. This proved to be a huge success and brought in the much-needed funds to keep the railway going. The takeaway is still going strong to this day and we are about to commence works to make it a permanent fixture, and also allowing space for indoor seating.

Works continued on Hollybank No.3 through the pandemic to get her back to steam, which was completed In May 2021. Essential maintenance continued through 2020/21

As you can see, our figures are much reduced compared to a "normal" year, but we are all proud of the job we have done and made a significant surplus of funds. Our independent examiner, Cheadles Chartered Accountants, praised us for the job we have done and we have been nominated for a business award for our efforts and success through the pandemic.

I would like to thank each and every trustee, volunteer and staff member who has gone above and beyond to ensure the survival of our railway in this most difficult of years.

Reserves policy

We currently hold ring fenced monies of £30k for Asbestos and £2,690 for the cost of building a new carriage shed.

Any other reserves will go largely towards the upkeep of the railway.

Page 1

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Report of the Trustees for the Year Ended 28 February 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Constitution as filed with Companies house. Trustee recruitment is done by letter to current board of trustees who will assess the applicant, and should a vacancy be available, the trustees will vote to recruit them. Should a vacancy not be available, the applicant will be notified accordingly and offered an alternative in the interim period. The current trustee structure is outlined in the SMS which is written and authorised by Green Dragon Rail Ltd.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 02060988 (England and Wales)

Registered Charity number 518516

Registered office

Chasewater Railway Pool Lane Brownhills West Station Burntwood Walsall WS8 7NL

Trustees

D Weeks (appointed 10.10.20) M E Sealey Mrs D L Sealey M Fellows M Hurley (resigned 1.3.20) L Tucker R Thompson (appointed 10.10.20)

Company Secretary

Independent Examiner CHEADLES Chartered Accountants Telegraph House 59 Wolverhampton Road Stafford Staffordshire ST17 4AW

Approved by order of the board of trustees on 13 June 2021 and signed on its behalf by:

M E Sealey - Trustee

Page 2

Independent Examiner's Report to the Trustees of Chasewater Light Railway & Museum Company

Independent examiner's report to the trustees of Chasewater Light Railway & Museum Company ('the Company') I report to the charity trustees on my examination of the accounts of the Company for the year ended 28 February 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

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

Independent examiner's statement

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

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

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

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

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

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

Cheadles Accountants

ICAEW CHEADLES Chartered Accountants Telegraph House 59 Wolverhampton Road Stafford Staffordshire ST17 4AW

4 August 2021

Page 3

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Statement of Financial Activities for the Year Ended 28 February 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Charitable activities
Other trading activities
2
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
Charitable activities
Other
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
fund
£
47,543
127,709
3,151
23,213
28,950
230,566
187,753
22,240
209,993
20,573
2,046,882
2,067,455
Restricted
funds
£
434
-
-
-
-
434
(1)
-
(1)
435
32,690
33,125
28.2.21
Total
funds
£
47,977
127,709
3,151
23,213
28,950
231,000
187,752
22,240
209,992
21,008
2,079,572
2,100,580
29.2.20
Total
funds
£
24,309
276,184
4,920
19,160
-
324,573
317,782
14,018
331,800
(7,227)
2,086,799
2,079,572

The notes form part of these financial statements

Page 4

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Balance Sheet 28 February 2021

Notes
FIXED ASSETS
Tangible assets
8
Heritage assets
9
CURRENT ASSETS
Stocks
10
Debtors
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
fund
£
1,802,051
193,682
1,995,733
22,000
3,133
54,929
80,062
(8,340)
71,722
2,067,455
2,067,455
Restricted
funds
£
-
-
-
-
-
33,125
33,125
-
33,125
33,125
33,125
28.2.21
Total
funds
£
1,802,051
193,682
1,995,733
22,000
3,133
88,054
113,187
(8,340)
104,847
2,100,580
2,100,580
2,067,455
33,125
2,100,580
29.2.20
Total
funds
£
1,809,426
179,515
1,988,941
30,000
4,213
71,975
106,188
(15,557)
90,631
2,079,572
2,079,572
2,046,882
32,690
2,079,572

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 13 June 2021 and were signed on its behalf by:

M E Sealey - Trustee

The notes form part of these financial statements

Page 5

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements for the Year Ended 28 February 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 20% on cost and 10% on cost
Plant and machinery - 25% on cost, 10% on cost and not provided
Fixtures and fittings - 25% on cost
Computer equipment - 25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

The Trustees review stock held at the balance sheet date to ensure that only those goods deemed fit for future sales are included.

Taxation

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

Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

2. OTHER TRADING ACTIVITIES

28.2.21 29.2.20 £ £ Subscriptions 3,151 4,920

continued...

Page 6

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

3. INVESTMENT INCOME

INVESTMENT INCOME
28.2.21 29.2.20
£ £
Rents received 23,178 19,023
Deposit account interest 35 137
23,213 19,160

4. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

28.2.21 29.2.20
£ £
Depreciation - owned assets 9,505 10,539
Accountants fees - 3,850

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 28 February 2021 nor for the year ended 29 February 2020.

Trustees' expenses

The following expenses were reimbursed to trustees during the year: £979.89 (2020: £Nill) - Shop purchases

£72.02 (2020: £144.32) - Loco Maintenance

£224.25 (2020: £186.88) - Subscriptions

£113.03 (2020: (£Nil) - Track & Station Repairs

2 Trustees (2020: 2 ) were reimbursed during the year.

6. STAFF COSTS

Salaries and Wages - £42,245.77 (2020: £56,138.63)

The average monthly number of employees during the year was as follows:

Tea room
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
21,619
Charitable activities
Charitable activities
276,184
Other trading activities
4,920
Investment income
19,160
Total
321,883
28.2.21
7
Restricted
funds
£
2,690
-
-
-
2,690
29.2.20
9
Total
funds
£
24,309
276,184
4,920
19,160
29.2.20
9
Total
funds
£
24,309
276,184
4,920
19,160
324,573

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

continued...

Page 7

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

EXPENDITURE ON
Charitable activities
Charitable activities
Other
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
8.
TANGIBLE FIXED ASSETS
COST
At 1 March 2020
Additions
At 28 February 2021
DEPRECIATION
At 1 March 2020
Charge for year
At 28 February 2021
NET BOOK VALUE
At 28 February 2021
At 29 February 2020
Unrestricted
fund
£
317,782
14,018
331,800
(9,917)
230
(9,687)
2,056,569
2,046,882
Short
leasehold
£
1,370,000
-
1,370,000
-
-
-
1,370,000
1,370,000
Restricted
funds
£
-
-
-
2,690
(230)
2,460
30,230
32,690
Improvements
to
property
£
42,847
-
42,847
12,607
3,616
16,223
26,624
30,240
Total
funds
£
317,782
14,018
331,800
(7,227)
-
(7,227)
2,086,799
2,079,572
Plant and
machinery
£
450,628
2,130
452,758
46,671
4,582
51,253
401,505
403,957

continued...

Page 8

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

8. TANGIBLE FIXED ASSETS - continued

8.
TANGIBLE FIXED ASSETS - continued
COST
At 1 March 2020
Additions
At 28 February 2021
DEPRECIATION
At 1 March 2020
Charge for year
At 28 February 2021
NET BOOK VALUE
At 28 February 2021
At 29 February 2020
9.
HERITAGE ASSETS
MARKET VALUE
At 1 March 2020
Additions
At 28 February 2021
NET BOOK VALUE
At 28 February 2021
At 29 February 2020
Fixtures
and
fittings
£
27,328
-
27,328
27,328
-
27,328
-
-
Computer
equipment
£
10,266
-
10,266
5,037
1,307
6,344
3,922
5,229
Totals
£
1,901,069
2,130
1,903,199
91,643
9,505
101,148
1,802,051
1,809,426
Total
£
179,515
14,167
193,682
193,682
179,515

Heritage assets include locomotives, coaches and wagons at an original cost of £46,583 and relics at an original cost of £20,000.

The heritage assets have been revalued by the Trustees at 29th February 2012 at realisable market value. There is an established market in these heritage assets and valuations are based on this market.

Due to the rare nature of these assets it would be misleading to value them on historical cost basis.

10. STOCKS

STOCKS
28.2.21 29.2.20
£ £
Stocks 22,000 30,000

continued...

Page 9

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.21 29.2.20
£ £
VAT 1,391 1,936
Prepayments 1,742 2,277
3,133 4,213
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.21 29.2.20
£ £
Trade creditors 92 2
Social security and other taxes (99) 61
Pensions payable 74 42
Other creditors 3,582 3,917
Accrued expenses 4,691 11,535
8,340 15,557
13. MOVEMENT IN FUNDS
Net
movement At
At 1.3.20 in funds 28.2.21
£ £ £
Unrestricted funds
General fund 2,046,882 20,573 2,067,455
Restricted funds
Asbestos 30,000 1 30,001
Carriage Shed 2,690 - 2,690
Roof repair - 434 434
32,690 435 33,125
TOTAL FUNDS 2,079,572 21,008 2,100,580
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 230,566 (209,993) 20,573
Restricted funds
Asbestos - 1 1
Roof repair 434 - 434
434 1 435
TOTAL FUNDS 231,000 (209,992) 21,008

continued...

Page 10

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.3.19
in funds
£
£
Unrestricted funds
General fund
2,056,569
(9,917)
Restricted funds
Restricted
230
-
Asbestos
30,000
-
Carriage Shed
-
2,690
30,230
2,690
TOTAL FUNDS
2,086,799
(7,227)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
321,883
Restricted funds
Carriage Shed
2,690
TOTAL FUNDS
324,573
Transfers
between
funds
£
230
(230)
-
-
(230)
-
Resources
expended
£
(331,800)
-
(331,800)
At
29.2.20
£
2,046,882
-
30,000
2,690
At
29.2.20
£
2,046,882
-
30,000
2,690
32,690
2,079,572
Movement
in funds
£
(9,917)
2,690
(7,227)
(7,227)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Restricted
Asbestos
Carriage Shed
Roof repair
TOTAL FUNDS
At 1.3.19
£
2,056,569
230
30,000
-
-
30,230
2,086,799
Net
movement
in funds
£
10,656
-
1
2,690
434
3,125
13,781
Transfers
between
funds
£
230
(230)
-
-
-
(230)
-
At
28.2.21
£
2,067,455
-
30,001
2,690
434
33,125
2,100,580

continued...

Page 11

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Notes to the Financial Statements - continued for the Year Ended 28 February 2021

13. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Asbestos
Carriage Shed
Roof repair
TOTAL FUNDS
Incoming
resources
£
552,449
-
2,690
434
3,124
555,573
Resources
Movement
expended
in funds
£
£
(541,793)
10,656
1
1
-
2,690
-
434
1
3,125
(541,792)
13,781
Resources
Movement
expended
in funds
£
£
(541,793)
10,656
1
1
-
2,690
-
434
1
3,125
(541,792)
13,781
3,125
13,781

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 28 February 2021.

15. RESTRICTED FUNDS

The following restricted funds are in place during the year:

Funds raised for the engine Asbestos. This money is to be used on the upkeep of this engine only. £30,000,000 of this fund is still in place at the year end.

This amount is currently being kept in the savings account.

Donations received for the cost of building a new carriage shed. £2,690.27 of this fund is still in place at the year end. This amount is currently in a separate savings accounts.

Donations received for the cost of roof repair. £434.00 of this fund is still in place at the year end. This amount is held in the current account.

Page 12

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Detailed Statement of Financial Activities for the Year Ended 28 February 2021

28.2.21 29.2.20
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gifts (1) -
Donations 47,978 24,309
47,977 24,309
Other trading activities
Subscriptions 3,151 4,920
Investment income
Rents received 23,178 19,023
Deposit account interest 35 137
23,213 19,160
Charitable activities
Train Operating Income 3,185 55,915
Shop Income 7,339 29,453
Special Events Income 14,378 65,031
Tea room sales 102,807 125,785
127,709 276,184
Other income
Government grants 28,950 -
Total incoming resources 231,000 324,573
EXPENDITURE
Charitable activities
Rates and water 2,769 3,112
Insurance 10,644 13,239
Light and heat 13,023 29,474
Repairs & General maintenance 30,724 34,712
Subscriptions 6,000 6,964
Telephone 4,894 5,107
Sundries 7,436 1,696
Shop Expenditure 8,778 20,446
Special Events Expenditure 957 22,111
Tea Room expenditure 36,105 51,414
Stock movement 8,000 (12,000)
Loco Maintenance 11,270 53,520
Publicity and advertising 384 4,158
Plant hire 4,300 16,845
Tea room wages 42,246 56,139
Pension 222 304
187,752 307,241
Support costs

This page does not form part of the statutory financial statements

Page 13

CHASEWATER LIGHT RAILWAY & MUSEUM COMPANY

Detailed Statement of Financial Activities

for the Year Ended 28 February 2021

28.2.21 29.2.20
£ £
Support costs
Management
Improvements to property 3,616 3,616
Plant and machinery 4,581 5,182
Computer equipment 1,307 1,743
9,504 10,541
Governance costs
Accountancy fees 3,900 3,850
Administrative expenses 5,620 6,276
Bank charges 3,216 3,892
12,736 14,018
Total resources expended 209,992 331,800
Net income/(expenditure) 21,008 (7,227)

This page does not form part of the statutory financial statements

Page 14