2021-03-31-accounts

Company registration number: 01865059

Trust registration number: 701034

EAST LANCASHIRE RAILWAY TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS 31 MARCH 2021

Horsfield & Smith Tower House 269 Walmersley Road Bury Lancashire BL9 6NX

EAST LANCASHIRE RAILWAY TRUST LIMITED

CONTENTS

Reference and Administrative Details	1
Trustees’ Report	2to6
Independent Auditors’ Report	7 to 10
Statement of Financial Activities	11
Balance Sheet	12
NotestotheFinancialStatements	13to24

EAST LANCASHIRE RAILWAY TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees	B J Davies - Chairman
	Clir A Barnes
	R Chapman
	Cllr A C Cheetham
	Cllr R Dutton
	CllrJJohnson
	CEJones
	CllrJKelly
	MW Kelly
	R Law
	AM McCarthy
	YSWright
Secretary	G Little
Principal Office	Town Hall
	Knowsley Street
	Bury
	Lancashire
	BLO OSW
Company Registration Number	01865059
Trust Registration Number	701034
Bankers	National Westminster Bank
	36 The Rock
	Bury
	Lancashire
	BLO ONU
Auditor	Horsfield &Smith
	Tower House
	269Walmersley Road
	Bury
	Lancashire
	BLO6NX

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EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES’ REPORT

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditor's report of the charitable company for the year ended 31 March 2021.

Trustees

B J Davies - Chairman Cllr A Barnes

R Chapman

Cllr AC Cheetham Cllr R Dutton

CllrJ Johnson

CE Jones CllrJ Kelly M W Kelly R Law

A M McCarthy

YS Wright

Structure, governance and management

Each of the Trust's local authority partners holds the freehold title to the railway land within their respective local authority boundary. The Trust holds the head lease for the railway and sublets this to the East Lancashire Light Railway Company Limited (ELLR) a further partner on the Trust board of management.

Recruitment and appointment of Trustees

The Articles of Association govern the membership of the Trust and provide each member (Bury Metropolitan Borough Council, Rossendale Borough Council, Rochdale Metropolitan Borough Council and the East Lancashire Light Railway Company Limited) the right to nominate three members each to the Board of Management.

Organisational structure

The East Lancashire Railway Trust is a company limited by guarantee and therefore has no share capital.

Objectives and activities

Objects and aims

The object of the Trust is to promote the permanent preservation for the benefit of the public generally of the historic railway line from Heywood to Rawtenstall, together with stations, buildings, locomotives and rolling stock.

The Trust also aims to educate the public on technical matters relating to railways, their construction and maintenance, engines, steam tractions and engineering skills and the importance of the railway in the industrial and social history of the towns and villages on the line from Heywood to Rawtenstall.

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EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES' REPORT

Public benefit

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

During 2020/21 the Trust has continued to support the East Lancashire Light Railway Company Limited ("ELLR") with the planned programme for the maintenance of the structures and investments in projects to develop the potential of the Railway. To this end the trust have made a grants totalling of £309,730 (2020 : £99,119) to ELLR for the following:

	2021	2020
	£	£
Maintenance ofstructures	253,785	25,000
Rawtenstall station		1,500
Buckley Wells development project	55,945	72,619
	309,730	99,119

Where possible the Trust aims to minimise current expenditure, whilst maintaining a rolling programme of inspections and assessments to ensure structures continue to be in an operational condition.

During much of the financial year ELLR was forced to close to visitors as a result of the global Covid 19 pandemic. A number of planned events have had to be cancelled and during the periods when the Railway was able to open the requirement to observe social distancing guidelines inevitably resulted in fewer visitor numbers. The Trust made available to ELLR a loan of £300,000 from the uncommuted funds. The loan was interest free and has been repaid since the year end as ELLR were successful in applying for grant assistance from other sources. As a result of the ongoing uncertainty in respect of the pandemic some of the current planned development projects may have to be postponed. The ELLR continues to assess the long term effects of the pandemic on its operational income streams.

Plans forfuture periods

The Trust and ELLR are continuing to review several areas of potential development. These include:

• ¢ continuing the improvements to the Heywood station and surrounding area;

• ¢ improvements to the Castlecroft station area and potential main line connectivity;

• e¢ development of the Rawtenstall stations; and

• e the proposed major development of the Buckley Wells site.

Financial review

The results for the year, and the Trust's financial position at the end of the year are shown in the attached financial statements.

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EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES' REPORT

Policy on reserves

One of the aims of the Trust is to provide finance to maintain the structures on the railway line between Heywood and Rawtenstal. Typical expenditure on any one project is in excess of £100,000 and can be as much as £500,000. For this reason the Trust needs to maintain substantial reserves to meet future obligations.

The Trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise commuted. Free reserves at 31st March 2021 are £527,503 (2020 : £529,672). These consist of the unrestricted general fund and the maintenance fund less the value tied up in fixed assets. The Trustees consider that, given the nature of future expenditure, the Trust should aim to increase its free reserves.

One of the major risks faced by the Trust is having insufficient funds to meet future maintenance requirements. To mitigate this risk the Trustees have a rolling programme of annual inspection and assessment of structures, with maintenance being carried out with a view to minimising the need for major repairs. Inspections are carried out by an independent Engineer, whose recommendations are then incorporated into the budget.

To supplement the Trust's funds wherever possible the Trustees actively seek grants from external sources. There is a risk that the Trust may not identify all grants to which it is entitled, but the Trustees make every effort to ensure this is not the case by constantly reviewing available grants before expenditure is undertaken.

Investment policy and objectives

Under the Memorandum and Articles of Association, the Trust has the power to make any investment which the Trustees see fit.

The management committee has considered the most appropriate policy for investing funds. It has decided that lending funds on the money market provides the best return in line with the Trusts risk policy and uncertain short term demand.

Financial instruments

Objectives and policies

The Trust's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Cash flow risk

The Trust’s activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The Trust’s principal financial assets are cash deposits held by Bury Metropolitan Borough Council.

The credit risk on liquid funds is limited because the funds are held by counterparties that are banks with high credit-ratings assigned by international credit-rating agencies.

The Trust's significant credit risk is that the funds are controlled by Bury Metropolitan Borough Council. a

EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES' REPORT

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Trust uses a mixture of long-term and short-term investments.

Going concern

After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Statement of Responsibilities

The Trustees (who are also the directors of East Lancashire Railway Trust Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• e select suitable accounting policies and apply them consistently;

• e observe the methods and principles in the Charities SORP;

• e¢ make judgements and estimates that are reasonable and prudent;

• e state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• ¢ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

Disclosure of information to auditor

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the Trust's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

5

EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES' REPORT

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Horsfield & Smith as auditor of the Trust is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the Trustees of the Trust on ete 212) and signed on its behalf by:

Mews BJ Davies - Chairman Trustee

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EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

Opinion

We have audited the financial statements of East Lancashire Railway Trust Limited (the ‘Trust') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• e give a true and fair view of the state of the Trust's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• e have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 Trustees 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 Trust's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

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EAST LANCASHIRE RAILWAY TRUST LIMITED

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The Trustees 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 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• e the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• e the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

• e adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• e the financial statements are not in agreement with the accounting records and returns; or

• e certain disclosures of Trustees remuneration specified by law are not made; or

• e we have not received all the information and explanations we require for our audit.

• e the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’report and from the requirement to prepare a strategic report.

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EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

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EAST LANCASHIRE RAILWAY TRUST LIMITED

Responsibilities of Trustees

As explained more fully in the [set out on page 5], the Trustees 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 Trustees 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 Trustees are responsible for assessing the Trust'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 Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 auditor’s 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.

The extent to which our procedures are capable of detecting irregularities, including fraud

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:

We considered the nature of the limited company’s industry and its control environment.; and reviewed documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the limited company operates in, and identified the key laws and regulations that:

• e had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation; and

• e do not have a direct effect on the financial statements but compliance with which may be fundamental to the limited company’s ability to operate or to avoid a material penalty.

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

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EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• ¢ reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• e performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• e enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• e reading minutes of meetings of those charged with governance.

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/auditors/auditors-assurance/auditors-responsibilities-for-the-audit-of-the-financial-statements This description forms part of our auditor's report.

The use of our report

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

Peter Nicol BSc FCA (Senior Statutory Auditor) For and on behalf of Horsfield & Smith, Statutory Auditor

Tower House

269 Walmersley Road Bury

Lancashire BLO 6NX

24 December 2021

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EAST LANCASHIRE RAILWAY TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2021 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

				Total	Total
		Unrestricted	Restricted	2021	2020
	Note	F	£	£	£
Income and Endowments from:
Donationsand legacies	2	29,271	-	29,271	36,893
Investment income	3	1,402	-	1,402	5,314
Otherincome	4	19,622	-	19,622	19,621
Total Income		50,295	-	50,295	61,828
Expenditure on:
Raisingfunds	5	72	-	72	(209)
Charitable activities	6	(332,995)	-	(332,995)	(128,962)
Total Expenditure		(332,923)	-	(332,923)	(129,171)
Netexpenditure		(282,628)	-	(282,628)	(67,343)
Netmovement in funds		(282,628)	-	(282,628)	(67,343)
Reconciliation offunds
Total funds brought forward		1,088,243	390,427	1,478,670	1,546,013
Totalfundscarriedforward	17	805,615	390,427	1,196,042	1,478,670

All of the Trust's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 17.

The notes on pages 13 to 24 form an integral part of these financial statements. 1

EAST LANCASHIRE RAILWAY TRUST LIMITED

BALANCE SHEET

AS AT 31 MARCH 2021 (REGISTRATION NUMBER: 01865059)

AS ATAT 31 MARCH 2021 (REGISTRATION NUMBER: 01865059)
		2021	2020
	Note	£	£
Fixed assets
Tangible assets	10	463,689	483,302
Investments	11	347,091	390,000
		810,780	873,302
Current assets
Debtors	12	325,049	43,277
Investments	13	295	553,458
Cash at bank and in hand	14	65,207	12,920
		390,551	609,655
Creditors:Amountsfallingdue within one year	15	(5,289)	(4,287)
Net current assets		385,262	605,368
Net assets		1,196,042	1,478,670
Funds ofthe Trust:
Restricted income funds
Restricted funds	17	390,427	390,427
Unrestricted income funds
Unrestricted funds		805,615	1,088,243
Totalfunds	17	1,196,042	1,478,670

The financial statements on pages 11 to 24 were approved by the Trustees, and authorised for issue on *¥..(12-12Zand signed on their behalf by:

B J Davies - Chairman Trustee

M W Kelly Ms Trustee

The notes on pages 13 to 24 form an integral part of these financial statements.

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

East Lancashire Railway Trust Limited 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 notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the trust to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about its ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Effect of Coronavirus-19

The trustees have considered the impact of Covid-19 on the operations of the Trust. They have detailed plans in place covering financial and organisational constraints, which they consider will allow the Trust to continue meeting its obligations. The trustees do consider that it continues to be appropriate to prepare the accounts on a going concern basis.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Trust has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.

Charitable activities

Charitable expenditure comprises those costs incurred by the Trust in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the Trust’s compliance with constitutional and statutory requirements.

Taxation

The Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life of 50 years.

Asset class

Asset class Depreciation method and rate Buildings, trackwork and structures 50 years straight line

Investments

Listed investments are initially recorded at cost. At each year end, the value is adjusted to bid price on the year end date.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Trust after deducting all of its liabilities. Recognition and measurement All financial assets and liabilities are initially measured at transaction price (including ‘transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Trust intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Trust transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Trust, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Fund accounting

Unrestricted general funds

Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the Trust.

Unrestricted designated funds

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted funds

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2 Income from donations and legacies

		Unrestricted
		funds	Total	Total
		Designated	2021	2020
		£	£	£
Donations and legacies;
	Legacies	-	-	6,893
	Contributions from participating local
	authorities	29,271	29,271	30,000
		29,271	29,271	36,893
3	Investment income
		Unrestricted
		funds	Total	Total
		General	2021	2020
		£	£	£
Interest receivable and similar income;
	Interest receivableon bank deposits	1,402	1,402	5,291
Other income from fixed asset investments		-	-	23
		1,402	1,402	5,314
4	Other income
		Unrestricted
		funds
			Total	Total
		General	2021	2020
		£	£	£
Rental income		19,622	19,622	19,621
5	Expenditure on raisingfunds
		Unrestricted
		funds
			Total	Total
		General	2021	2020
		£	£	£
Movement	Movementininvestmentvalue	(72)	(72)	209

5 Expenditure on raising funds

Movement in investment value

u[EV]

EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6 Expenditure on charitable activities

		Unrestricted funds	Unrestricted funds	Total	Total
		Designated	General	2021	2020
	Note	£	£	£	£
Allocated support
costs		309,730	19,881	329,611	126,142
Governance costs	7	-	3,384	3,384	2,820
		309,730	23,265	332,995	128,962
		Activity
		undertaken	Grantfunding	Total	Total
		directly	of activity	2021	2020
		£	£	£	£
Maintenance of structures		19,881	253,785	273,666	45,009
Development projects		-	55,945	55,945	81,133
		19,881	309,730	329,611	126,142

In addition to the expenditure analysed above, there are also governance costs of £3,384 (2020 - £2,820) which relate directly to charitable activities. See note 7 for further details.

7 Analysis of governance and support costs

Governance costs

	Unrestricted
	funds	Total	Total
	General	2021	2020
	£	£	£
Audit fees
Audit ofthe financial statements	3,384	3,384	2,820
	3,384	3,384	2,820

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8 Net incoming/outgoing resources

Net outgoing resources for the year include:

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|||||| |---|---|---|---|---| |2021|2020| |£|£| |Audit|fees|3,384|2,820| |Depreciation|of fixed|assets|19,613|19,613|

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9 Staff costs

No trustees, nor any persons connected with them, have received any remuneration from the Trust during the year.

The Trust is managed by Bury Metropolitan Bourgouh Council. The Council receives no renumeration for staff time taken to manage the Trust.

10 Tangible fixed assets

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|||||||||| |---|---|---|---|---|---|---|---|---| |Freehold| |Property|Trackwork|Stations|Bridges|Total| |£|£|2|£|£| |Cost| |At|1|April|2020|47,097|239,640|636,053|57,836|980,626| |At|31|March|2021|47,097|239,640|636,053|57,836|980,626| |Depreciation| |At|1|April|2020|27,644|113,449|327,791|28,440|497,324| |Charge|for the| |year|942|4,793|12,721|1,157|19,613| |At 31|March|2021|28,586|118,242|340,512|29,597|516,937| |Net|book|value| |At 31|March|2021|18,511|121,398|295,541|28,239|463,689| |At|31|March|2020|19,453|126,191|308,262|29,396|483,302|

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11 Fixed asset investments

Other investments

	2021	2020
	£	£
Other investments	347,091	390,000
12 Debtors
	2021	2020
	£	£
Due from related undertakings	317,648	28,899
Prepayments	=	267
Accrued income	1,401	2,141
Other debtors	6,000	12,000
	325,049	43,277
13 Current asset investments
	2021	2020
	£	£
Listed other shares	295	223
Cash deposits	-	553,235
	295	553,458
14 Cash and cash equivalents
	2021	2020
	£	£
Cash at bank	65,207	12,920
15 Creditors: amounts fallingdue within one year
	2021	2020
	£	£
Othercreditors	5,289	4,287

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EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16 Trust status

The Trust is a company limited by guarantee and consequently does not have share capital.

The guarantors who are liable to contribute an amount not exceeding £10 towards the assets of the Trust in the event of liquidation are:

Bury Metropolitan Borough Council Rossendale Borough Council

East Lancashire Light Railway Company Limited Rochdale Metropolitan Borough Council

The address of its registered office is:

Town Hall Knowsley Street Bury Lancashire BL9 OSW

17 Funds

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||||||| |---|---|---|---|---|---| |Balance|at|1|Incoming|Resources|Balance at 31| |April|2020|resources|expended|March|2021| |£|£|£|£| |Unrestricted|funds| |General| |General|funds|529,672|21,096|(23,265)|527,503| |Designated| |Development|fund|250,000|-|(55,945)|194,055| |Maintenance fund|308,571|29,271|(253,785)|84,057| |558,571|29,271|(309,730)|278,112| |Total|unrestricted funds|1,088,243|50,367|(332,995)|805,615| |Restricted|funds| |Maintenance|fund|390,427|-|-|390,427| |Total funds|1,478,670|50,367|(332,995)|1,196,042|

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

The specific purposes for which the funds are to be applied are as follows:

The maintenance fund

(Previously the commuted sum)

Comprises a derelict land grant fund and transfers from the general fund.

The derelict land grant fund represents the amount received in respect of monies to be invested to produce income towards the long term maintenance of major structures on the railway. There are no specific restrictions on the way in which such income should be used, and consequently that income is taken directly to the income and expenditure account. The monies comprising the fund are shown on the balance sheet as fixed assets investments, constituting the full amount of the monies on deposit so treated, and as part of the cash at bank.

The development fund

(Previously the non-derelict land grant fund)

Represents the amount in respect of capital payments towards expenditure necessary prior to the re-opening of the railway. Both the income and capital of this fund may be used for this purpose.

The analysis of the original make up of the fund is as follows:-

	2021	2020
	£	£
Greater Manchester Council
Engineering works	183,000	183,000
Building works	75,000	75,000
Promotion and marketing	34,000	34,000
	292,000	292,000
Rossendale Borough Council	60,000	60,000
	352,000	352,000
Previously releasedto income and expenditure	(102,000)	(102,000)
	250,000	250,000

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EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18 Analysis of net assets between funds

				Total funds at
	Unrestricted	funds	Restricted	31 March
	General	Designated	funds	2021
	£	£	£	£
Tangible fixed assets	463,689	-	-	463,689
Fixed asset investments	-	-	347,091	347,091
Current assets	69,103	278,112	43,336	390,551
Current liabilities	(5,289)	-	-	(5,289)
Total net assets	527,503	278,112	390,427	1,196,042
				Total funds at
	Unrestrictedfunds	funds	Restricted	31March
	General	Designated	funds	2020
	£	£	£	£
Tangible fixed assets	483,302	-	-	483,302
Fixed asset investments	.	-	390,000	390,000
Current assets	50,657	558,571	427	609,655
Current liabilities	(4,287)	.	-	(4,287)
Totalnetassets	529,672	558,571	390,427	1,478,670

19 Related party transactions

During the year the Trust made the following related party transactions:

East Lancashire Light Railway Company Limited

The Trust has a close relationship with East Lancashire Light Railway Company Limited. This company operates the railway and also nominates 3 members to the Trust's Board of Management.

During the year the Trust made grants totalling £309,730 (2020 - £99,119) and a loan of £300,000 (2020 : nil) to the East Lancashire Light Railway Company Limited. The rental income receivable from East Lancashire Light Railway Company Limited was £19,621 (2020 - £19,621). At the balance sheet date the amount due from East Lancashire Light Railway Company Limited was £317,648 (2020 - £28,899).

Bury Metropolitan Bourgh Council Bury Metropolitan Bourgh Councill nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £12,000 to the Commuted Sum for the maintenance of the railway structures. At the balance sheet date the amount due to/from Bury Metropolitan Bourgh Council was £Nil (2020 - £Nil).

23

EAST LANCASHIRE RAILWAY TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Rochdale Metropolitan Bourgh Council

Rochdale Metropolitan Bourgh Councill nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £12,000 to the Commuted Sum for the maintenance of the railway structures. At the balance sheet date the amount due to/from from Rochdale Metropolitan Bourgh Council was £Nil (2020 - £12,000).

Rossendale Borough Council

Rossendale Borough Council nominates 3 members to the Trust's Board of Management.

The Council makes an annual contribution of £6,000 to the Commuted Sum for the maintenance of the railway structures. At the balance sheet date the amount due from Rossendale Borough Council was £6,000 (2020 - £Nil).

24