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2023-03-31-accounts

MEETING:

EAST LANCASHIRE RAILWAY TRUST BOARD. Director responsible Richard Law - Operations Director

DATE:

SUBJECT: EAST LANCASHIRE RAILWAY, ANNUAL REPORT ON STRUCTURES – OUT-TURN 2021/22 & FORWARD PROGRAMME 2022/23 to 2026/27

REPORT FROM:

Bury MBC acting as Line Engineer to the ELLR Co.

CONTACT OFFICER:

Mark Nightingale on behalf of C. Foster-Devine - Head of Engineering

TYPE OF DECISION:

BOARD

FREEDOM OF FOR PUBLICATION INFORMATION/STATUS:

SUMMARY:

The report provides information regarding the condition of railway structures between Bury/Rossendale and Bury/Heywood, along with details of works carried out to structures in 2021/22.

The report is submitted to the East Lancashire Railway Trust Board to inform Trustees of the condition and make recommendations for the management of the structures.

The report provides details of inspection and assessment programmes for the Bury/Rossendale line and the Bury/Heywood line.

OPTIONS & RECOMMENDED OPTION

The ELR Trust Board is asked to:

  1. Note the contents of this report relating to structures and that all costs shown in this report are exclusive of VAT.

  2. Note the expenditure outturn for 2021/22 as detailed in section 2.1 and 2.2 of this report.

  3. Note the details and works recommendations for Park Road Bridge, Springside Farm Accommodation Bridge, High Woodhill Viaduct and Lumb Subway as shown in sections 3.5, 5.4, 5.5 and 5.6 below. Also note the recommendations for speed restrictions to Springside Farm Bridge and Lumb Subway plus the recommendations for Alderbottom High Viaduct as per section 6.3 below.

  4. Approve the programme of works, inspections, and

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expenditure for 2022/23 – 2026/27 as detailed in Section 7.1, table 2 of this report and make finances available accordingly.

  1. Authorise Bury Council’s Head of Engineering to incur expenditure in the financial year 2022/23 up to the sum of £159,000 and £164,500 for the year 2023/24 as detailed in Section 7.1, Table 2 of this report.

IMPLICATIONS:

Financial Implications and Risk It is recommended the ELR Trust Board Considerations: makes appropriate finances available to carry out the programme of inspections, assessments and works detailed in Section 7.1, Table 2 of this report.

Bury Council’s Engineering The Head of Engineering is satisfied as to the Consultancy Manager (Civil condition of the structures to meet their Engineer to the Line): obligations in respect of operational safety and the insurance of the structures on the railway. Wards Affected: As a strategic project all wards within Bury Council, Rossendale Council and Rochdale Council.

1.0 BACKGROUND

2.0 ISSUES

2021/22 2021/22
Approved Actual
£ £
Principal Inspections and Assessments 15,000.00 0.00
Reactive Maintenance and General 10,000.00 5,900.00
Inspections (including administration
costs)
Masonry Repairs 5,000.00 0.00
Planned Maintenance and Schemes 15,000.00 0.00
(Springside Farm Bridge)
Total 45,000.00 5,900.00

2

2021/22

Principal Inspections and Assessments

(a)
No costs incurred
Total
Reactive Maintenance & General Inspections (including
administration Costs)
(b)
Administration costs – PPP1002
(c)
Removal of trees/vegetation – XDP7330
Total
Planned Maintenance
(d)
No cost incured
Total
Grand Total of Above		 0.00
0.00
2,500.00
3,400.00
5,900.00
0.00
0.00
5,900.00

Any approved programme expenditure above the approved level will be the subject of a separate report to the ELR Trust Board who will be able to give consideration to the appropriateness of contributions in advance of expenditure being incurred.

The Board is requested to note that expenditure has previously been managed so as to minimise costs as far as was practicable without compromising safety, operations or the long term integrity of structures on the line. This acknowledged the requirement to undertake large value contracts in the very near future (and taking account of the lost revenue due to Covid 19 disruptions). However, these largescale works are now imminently required to commence and expenditure over the next 5 years will be substantial (subject to approval), as detailed in Section 7.1, table 2 below.

Whilst they seemed generally satisfied with arrangements, they did make some observations/recommendations. In particular, they commented on the long periods between principal inspections/assessments to some individual structures, the lack of a formal ‘Scour Risk Assessment’ to the river crossings

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and the need for a more formal relationship between the ELR and Bury MBC (in as far as the ELR checking on the findings of the various inspections to satisfy themselves as to the condition of the structures).

As a result, the period between principal inspections has been reduced to 6 years with a structure specific assessments being carried out to see if this period can be increased.

A formal Stage 1 Scour Risk Assessment (initial assessment) has been carried out to all applicable structures and the recommendation is all structures require a Stage 2 Assessment (more detailed assessment). These are due to be carried out in 2023/24.

To meet the ORR recommendation for a more formal checking of inspection findings to structures by the ELR, it is proposed that all Principal Inspections and Assessments carried out from 2023/24 are issued to the ELR for information/scrutiny.

Further information on the above is shown in Section 5 below.

3.0 Inspections and Assessments

Park Road Railway Bridge, Bury (B02/340) is the only private structure along the operational railway that falls into this category.

As previously reported, the condition of the bridge is of concern and it would appear that little or no works have been carried out to the bridge since the last detailed inspection/report was produced in 2013. Given the time that has elapsed since the inspection, it should be assumed the condition of the structure has deteriorated further since the time of the inspection.

It is strongly recommended the ELR take urgent measures to satisfy themselves the current use/condition of the bridge does not represent a hazard to rail operations. If necessary, this should include using any applicable powers they have as a rail operator to prevent the use of the bridge (for heavy loads) until the owners can demonstrate it is safe to do so.

3.6 The latest Principal Inspections and Assessments results are shown in

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Appendix 1 of this report. Details of major and urgent works identified are shown in Section 5 below.

General Inspections were carried out to all relevant structures in 2021/22 and carried over in to 2022/23. These highlighted various structure defects that will be managed within the budget shown in section 7.1 of this report. No new defects with major expense were found.

Underwater inspections – These were completed in 2022 with no significant issues identified.

In addition to the above, principal, general and underwater inspections have shown various defects to other structures. These defects will be prioritised and repaired within approved budgets as detailed in section 5.3 below.

4.0 Summary of Inspections, Assessments and Maintenance to date.

The Principal Inspection to the M66 Railway Bridge highlighted that a special inspection and management plan of this structure is required as it a post tensioned bridge. This is to be undertaken in 2023/24.

Whilst principal inspections and assessments were commissioned in 2020/21 and 2021/22, these were not completed until this year (2022/23). Hence, both the costs of the 2020/21 and 2021/22 commission and the ongoing principal inspections/assessments are shown in the budget for 2022/23 in table 7.2 below.

Whilst various defects have been identified to structures along ELR, based on the information to date, all structures are considered suitable for current rail operations subject to the measures/works shown in Section 5 below.

5.0 Programme of Inspections, Assessments and Works (2015/16 - 2019/20)

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made by the ORR and taking in to account the ageing structures stock along the railway, the new principal inspection/assessment programme will be based on a 6 to 8 year programme of 6 to 7 structures a year. This will inevitably increase the annual inspection cost. These additional costs are reflected in Section 7.1 Table 2 below.

Details of these inspections/assessments from 2010/11 to 2022/23 and the new programme of Principal Inspections and assessments are detailed in Appendix 1 of this report.

The new programme may be revised periodically subject to the results of interim inspections.

All bridges, culverts and retaining walls require a General Inspection (unless a principal inspection is due) and where applicable an Underwater Inspection on a biennial basis.

The total number of structures requiring a general inspection is 86 and typically 11 underwater inspections will be required on a biannual basis.

AS mentioned in item 2.4 above, a formal Stage 1 Scour Risk Assessment has been carried out to all applicable structures and a Stage 2 Assessment is due to be carried out in 2023/24 as recommended by the ORR. The cost of these assessments is included in the proposed expenditure.

From the inspections and assessments carried out the priority works over the coming years is for planned maintenance on Spring Side Farm Bridge, Higher Woodhill Viaduct and Lumb Subway (subject to further investigation).

The existing 5mph speed restriction should remain in place and apply to all rail operations until the strengthening works have been completed.

Detailed surveys and inspections/assessments have found that whilst the viaduct is fit for rail operations, the extent of defects throughout the viaduct is extensive. An assessment of the structure noted that any further loss of section to the steel work would result in the structure falling below the standard for unfettered rail operations.

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A scheme to carry out repairs to the structure has been approved in the sum of £400,000 and was due to commence in February 2023, with the works being split in to two phases with one steel span being refurbished in phase 1 and two spans in phase 2.

However, a formal quotation based on a full specification and bill of quantities for Phase 1 has been received in the sum of £322,000. This now puts the estimated cost for the refurbishment of all 3 steel spans of the bridge at £989,000. Clearly this is significantly more than the original estimate and beyond previously agreed expenditure.

Given the increased costs above, we have been asked to delay the phase 1 works for 12 months to allow the Trust to consider the revised costs and identify additional finances to progress the scheme of repairs.

As a result, a further inspection and assessment of the structure is to be caried out at the earliest opportunity to get current details on the structure. The inspection will also be used to gather information for the design and refurbishment of the proposed phase 2 works to avoid additional site visits/costs at a later date.

On completion of the above inspection/assessment, a report will be submitted to the ELR Trust/Company to inform them of the findings.

It is currently considered very likely that both phase 1 & 2 works will be required (based on current information), hence, the associated costs are included in the proposed Programme of works in Section 7.1 of this report.

A sum of £15,000 is included in the works programme for 2023/24 to meet the cost of further investigations and reassessment.

Given the expenditure on structures identified, it is clear the commuted will need significant topping up if it is to sustain the maintenance of structure in the long term. Therefore, it is strongly recommended funding from other sources/contributions are sought to replenish the commuted sum.

The insurance premium for structures paid by the ELLR Company should provide for any major unforeseen expenditure.

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6.0 OTHER ISSUES.

The side of the culvert had collapse and had the potential to undermine the adjacent abutment of the bridge, as reported in last years report on structures.

LCC/others have now completed the repairs to the area of concern as shown in the photos below. Other repairs are ongoing to the culvert down stream of Strongstry Bridge, but these are not a concern in relation to the structure.

Ownership and maintenance responsibilities for the culvert outside of the ELR lease has still not been agreed but this sits with LCC and/or Rossendale Borough Council.

Further investigations are required to understand the construction/extents of the culvert, however, from a brief inspection carried out whilst it was exposed, it appears to be in a fair condition. An assessment is required to determine whether it has the capacity to carry the loading generated by ELR rolling stock in future years.

To this end, it was agreed in principle for the transfer/surrender of the structure/land to Rossendale Borough Council/Sustrans and the associated documentation was put in place, however, this was not formally signed, and a land registry search shows the area in question as still being with the ELR. Hence, even though they gain no benefit from the structure whatsoever, the ELR are still liable for the maintenance and inspection of the viaduct and the associated costs.

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A principal inspection and assessment were carried out in 2022, at a cost of £5,193 and the structure will continue to incur other inspection costs (general and underwater inspections) in the coming years plus any costs for repair unless the process of the transfer/surrender of Alderbottom High Viaduct, to Rossendale Borough Council/Sustrans is completion.

6.4

Chestwheel Land Slip – The long standing issue of the land slip effecting the track near Chestwheel Bridge continues to cause operational problems, in particular, following periods of prolonged or heavy rain.

To understand the cause of the problem, the ELR commissioned a geological investigation and report, this has now been completed. Bury Council Engineers are to meet with the geologist to discuss the finding of the report, the options available to rectify the problems and will report back to the ELR following discussions.

CONCLUSIONS.

Table 2 shows the proposed programme of works and inspections for the next five year period.

Table 1 – Approved Rolling 5 year Programme 2021/22 – 2025/26 (Approved March 2022)

2021/22 2022/23 2023/24 2024/25 2025/26 Total
£ £ £ £ £ £
Principal
Inspections and
Assessments		 13,500 85,000 30,000 30,000 35,000 193,500
Minor
Maintenance,
General
Inspections &
Admin costs.
Masonry Repairs		 7,000
5,000		 10,000
5,000		 7,000
5,000		 10,000
5,000		 7,000
5,000		 41,000
25,000
Spring Side Farm
Bridge		 130,000 130,000
Lumb Subway 10,000 10,000
Higher Woodhill
Viaduct* (see note
below)		 90,000 120,000 25,000 165,000 400,000
Total 25,500 330,000 162,000 70,000 212,000 799,500

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Table 2 – Proposed Rolling 5 year Programme 2022/23 – 2026/27

2022/23 2023/24 2024/25 2025/26 2026/27 Total
£ £ £ £ £ £
Principal
Inspections and
Assessments		 85,000 30,000 35,000 35,000 35,000 220,000
Minor
Maintenance,
General
Inspections &
Admin costs.
Masonry Repairs		 7,000
5,000		 7,000
7,500		 10,000
7,500		 15,000
7,500		 15,000
10,000		 54,000
37,500
Spring Side Farm
Bridge		 45,000 85,000 130,000
Lumb Subway 15,000 15,000
Higher Woodhill
Viaduct* (see
note below)		 17,000 20,000 322,000 30,000 600,000 989,000
Total 159,000 164,500 374,500 87,500 660,000 1,445,500

*Note – The revised costs in Table 2, above those submitted in the last report on structures, are due to an increase in the estimated costs for Higher Woodhill Viaduct and high inflation cots for construction works and inspections in general.

Carmel Foster-Divine - Head of Engineering

List of Background Papers:-

ELR Annual Report on Structures 2020/21 – ELR Trust Board March 2022

Bridge files and databases held in Bury Council’s Resources and Regulation Services, Engineering Consultancy on the 2[nd] Floor, 3 Knowsley Place, Duke Street, Bury, BL9 0EJ

Enclosures:

Appendix 1 – Schedule of Principal Inspections and Assessments to Structures.

Appendix 2 – Schedule of Painting of Structures

private:streamft

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APPENDIX 1

SCHEDULE OF PRINCIPAL INSPECTIONS AND ASSESSMENTS TO STRUCTURES (Bury/Rawtenstall/Rochdale)

Last Inspection/ Assessment
Underwater Assessment Result
Structures to be inspected/assessed 2010/11: inspection Completed
1) B02/384 Nuttall Viaduct July 21 Yes **
2) B19/003 Alderbottom Low Viaduct July 21 Yes Pass
3) B02/383 Higher Woodhill Viaduct July 21 Yes Pass
4) B19/004 Lumb Subway (Including B19/022, & B19/023 N/A Yes RA7
Lumb West and Lumb East Retaining Walls)
Structures to be inspected/assessed 2011/12:
5) B02/090 Tan Pits Road Railway Bridge N/A Yes Pass
6) B02/092 Burrs Railway Bridge Nov 21 Yes Pass
7) B02/397 Station Approach South Ramp N/A Yes Pass
8) B19/012 Townsend Fold Culvert July 21 Yes Pass
Structures to be inspected/assessed 2012/13:
9) B02/094 Summerseat Railway Bridge N/A Yes RA8
10) B19/017 Stubbins Lane Bridge N/A Yes Pass
11) B02/091 Chamberhall Subway N/A Yes Pass
12) B19/016 Gasworks Reservoir Bridge N/A Yes RA7
Structures to be inspected/assessed 2013/14:
13) B02/387 Ashtons Subway N/A Yes Pass
14) B02/099 Ramsbottom Station Footbridge N/A Yes Pass
14a) B19/003A Alderbottom High Viaduct July 21 Yes Pass
15) B19/013 Hardmans Bridge N/A Yes Pass
Structures to be inspected/assessed 2014/15:
16) B02/098 Square River Bridge July 21 Yes RA8
17) B02/449 Seedfield Culvert N/A Yes Pass
18) B02/093 Springside Farm Accommodation Bridge N/A Yes RA0
19) B19/001 Stubbins Subway N/A Yes Pass
Structures to be inspected/assessed 2015/16:
20) B02/097 Nuttall Hall Tunnel. N/A Yes N/A
21) B02/096 Brooks Bottom Tunnel. N/A Yes N/A
22) B02/340 Park Road Railway Bridge (Private Structure) N/A Access denied
Structures to be inspected/assessed 2016/17:
23) B02/013 Bolton Street Bridge N/A Yes N/A
24) B02/095 Brooks Bottom Railway Viaduct. July 21 Yes Pass
25) B19/011 Wharf underpass. N/A Yes Pass
26) B19/007 Lower Ashenbottom Bridge. July 21 Yes Pass
Structures to be inspected/assessed 2017/18:
27) B19/006 Hardsough Weir Bridge. July 21 Yes Pass
28) B19/008 Ewood Station Bridge N/A Yes Pass
29) B19/014 New Hall Hey Bridge. July 21 Yes Pass
30) B19/002 Strongstry Bridge. N/A Yes Pass

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31) B19/005 Hardsough Subway (including B19/024 N/A Yes Pass
Bungalows Retaining Wall).
32) B02/382 Booking Hall Bridge & Footbridge N/A Yes Pass
33) B02/392 Nuttall Culvert. N/A Yes Pass
APPENDIX 1 (continued)
Structures to be inspected/assessed 2017/18 Continued: Last Inspection/ Assessment
Underwater Assessment Result
inspection Complete
34) B02/383 Higher Woodhill Viaduct July 21 Yes Pass
35) B19/004 Lumb Subway (Including B19/022, & B19/023 N/A Ongoing **
Lumb West and Lumb East Retaining Walls)
36) B02/384 Nuttall Viaduct July 21 Yes Pass
Structures to be inspected/assessed 2018/19:
37) B03/415 Waterfold Bridge N/A Yes Pass
38) B03/106 Spout Bank Farm Bridge N/A Yes Pass
39) B03/363 Wilton Grove Railway Bridge N/A Yes Pass
40) B03/600 Manchester Street Retaining Wall N/A Yes Pass
Structures to be inspected/assessed 2019/20:
41) B03/585 Heywood Station Retaining Wall N/A Yes Pass
42) B03/797 Sefton Street Retaining Wall N/A Yes Pass
43) B02/120 Primrose Hill Tunnel N/A Yes Pass
Structures to be inspected/assessed 2020/21:
44) B03/584 Schofield Street Retaining Wall N/A Next Phase
45) B03/610 Heywood Sidings Retaining Wall N/A Yes Pass
46) B03/103 Pilsworth Road Railway Bridge N/A Yes **
Structures to be inspected/assessed 2021/22:
47) B02/433 Metrolink Railway Bridge N/A Yes Pass
48) B03/596 M66 Railway Bridge N/A Yes **
49) B02/456 Roch Viaduct Nov 21 On going
50) B19/001 Stubbins Subway N/A On going
51) B19/003 Alderbottom Low Viaduct N/A On going
52) B19/016 Gasworks Reservoir Bridge N/A Yes RA7
53) B19/017 Stubbins Lane Bridge N/A On going
rivate Structures -Details as submitted by structure owner unless otherwise stated
B02/340 Park Road Railway Bridge N/A Yes Poor
condition

Private Structures -Details as submitted by structure owner unless otherwise stated

** Further testing required

< Principal Inspection period reduced from 12 years to number shown (i.e. <6 = less than 6 years, < 8 = less than 8 years)

Note:

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The prefix to the bridge numbers (B02, B03, B19) shown in Appendix 1 denotes the Local Authority jurisdiction where the bridge is located.

B03 - Structures within the jurisdiction of Rochdale MBC B19 - Structures within the jurisdiction of Rossendale Borough Council

SCHEDULE OF PRINCIPAL INSPECTIONS AND ASSESSMENTS TO STRUCTURES (Bury/Rawtenstall/Rochdale) 2022-2030

Structures to be inspected/assessed 2022/23

Last Inspection/ Assessment Underwater Assessment Result inspection Completed

1) B02/095 Brooks Bottom Railway Viaduct
2) B02/091 Chamberhall Subway
3) B02/098 Square River Bridge (inc. masonry subway)
4) B02/387 Ashtons Subway
5) B02/099 Ramsbottom Station Footbridge
6) B19/003A Alderbottom High Viaduct
7) B19/013 Hardmans Bridge
8) B02/093 Springside Farm Accommodation Bridge
(Provisional)
Structures to be inspected/assessed 2023/24
9) B02/449 Seedfield Culvert
10) B02/097 Nuttall Hall Tunnel.
11) B02/096 Brooks Bottom Tunnel
12) B02/013 Bolton Street Bridge
13) B02/392 Nuttall Culvert.
14) B19/012 Townsend Fold Culvert
15) B02/384 Nuttall Viaduct
Structures to be inspected/assessed 2024/25:
16) B19/006 Hardsough Weir Bridge.
17) B19/007 Lower Ashenbottom Bridge
18) B19/008 Ewood Station Bridge
19) B19/011 Wharf underpass
20) B19/014 New Hall Hey Bridge.
21) B19/002 Strongstry Bridge.
Structures to be inspected/assessed 2025/26:
22) B19/005 Hardsough Subway (including B19/024
Bungalows Retaining Wall).
23) B02/382 Booking Hall Bridge & Footbridge
24) B02/383 Higher Woodhill Viaduct
25) B19/004 Lumb Subway (Including B19/022, & B19/023
Lumb West and Lumb East Retaining Walls)
26) B03/415 Waterfold Bridge
27) B03/106 Spout Bank Farm Bridge
28) B03/363 Wilton Grove Railway Bridge
Structures to be inspected/assessed 2026/27:
29) B03/600 Manchester Street Retaining Wall
30) B03/585 Heywood Station Retaining Wall
31) B03/797 Sefton Street Retaining Wall
32) B02/120 Primrose Hill Tunnel
33 B03/584 Schofield Street Retaining Wall
34) B03/610 Heywood Sidings Retaining Wall

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SCHEDULE OF PRINCIPAL INSPECTIONS AND ASSESSMENTS TO STRUCTURES (Bury/Rawtenstall/Rochdale) 2022-2030

Structures to be inspected/assessed 2027/28

Last Inspection/ Assessment Underwater Assessment Result inspection Completed

Structures to be inspected/assessed 2028/29: 41) B02/094 Summerseat Railway Bridge 42) B02/456 Roch Viaduct 43) B19/016 Gasworks Reservoir Bridge

Private Structures -Details as submitted by structure owner unless otherwise stated

47) B02/340 Park Road Railway Bridge

** Further testing required

Note:

The prefix to the bridge numbers (B02, B03, B19) shown in Appendix 1 denotes the Local Authority jurisdiction where the bridge is located.

B19 - Structures within the jurisdiction of Rossendale Borough Council

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Company registration number: 01865059 Trust registration number: 701034

EAST LANCASHIRE RAILWAY TRUST LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 MARCH 2023

EAST LANCASHIRE RAILWAY TRUST LIMITED

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 6
Independent Auditors' Report 7 to 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 to 22

EAST LANCASHIRE RAILWAY TRUST LIMITED REFERENCE AND ADMINISTRATIVE DETAILS

Trustees B Davies
N E Bayley
R Chapman
Cllr A C Cheetham
Cllr J Johnson
M W Kelly
C R Law
C E Morris
Cllr P Rush
S M Serridge
Cllr B Sheerin
Registered Office Town Hall
Knowsley Street
Bury
Lancashire
BL9 0SW
The Trust is incorporated in Wales.
Company Registration Number 01865059
Trust Registration Number 701034
Bankers National Westminster Bank
Auditor Horsfield & Smith
Tower House
269 Walmersley Road
Bury
Lancashire
BL9 6NX

1

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 auditors' report of the charitable company for the year ended 31 March 2023.

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: B Davies Cllr A Barnes (resigned 12 September 2022) N E Bayley (appointed 12 September 2022) R Chapman Cllr A C Cheetham R Dutton (resigned 12 September 2022) Cllr J Johnson C E Jones (resigned 12 September 2022) Cllr J Kelly (resigned 12 September 2022) M W Kelly C R Law Mr A M McCarthy (resigned 12 September 2022) C E Morris (appointed 12 September 2022) YS Wright (resigned 12 September 2022) Cllr P Rush (appointed 12 September 2022) S M Serridge (appointed 12 September 2022) Cllr B Sheerin (appointed 12 September 2022)

The following Trustees who served during the year retired on 12 September 2022: Cllr A Barnes; R Dutton; CE Jones; Cllr J Kelly; Mr AM McCarthy; and Mrs 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.

2

EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES' REPORT

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.

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.

Financial review

During 2022/23 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 £131,165 (2022 : £39,773) to ELLR for the following:

Maintenance of structures
Contribution to marketing strategy
Buckley Wells development project		 2023
£
119,672
4,175
7,318
131,165		 2022
£
29,148
-
10,625
39,773

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. Principal inspections scheduled for 2020/21 and 2021/22 had fallen slightly behind schedule but were completed in 2022/23.

Maintenance expenditure during the year relates these ongoing expenses.

Whilst the inspection program has found all structures to be fit for rail operations it has highlighted extensive repair work needed and a new five year rolling program has been drawn up to prioritise these. Additional funding will need to be generated to action this plan. The Trust has commissioned surveys to identify income generating opportunities from land occupied by the railway and has made a contribution of £4,175 to an overall marketing strategy for the promotion of the heritage line.

The Trust has continued to make contributions to the development of Buckley Wells. This project has received planning permission. It will be an extensive project completed over a number of phases. The work will primarily be actioned by ELLR.

3

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 £1M. 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 2022 are £524,537 (2021 : £527,503). 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 remedial 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.

4

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

The Company has obligations in respect of the maintenance of key structures along the route of the railway. The Board of Trustees has recognised that the current level of cash reserves is insufficient to meet its obligations in the medium term, and the Board has addressed the existence of the possible shortfall in a timely manner.The schedule of planned maintenance work confirms that this work will be able to be carried out. 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that can 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.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

5

EAST LANCASHIRE RAILWAY TRUST LIMITED

TRUSTEES' REPORT

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.

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 .................... and signed on its behalf by:

.........................................

B Davies Trustee

6

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 2023, 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:

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 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.

7

EAST LANCASHIRE RAILWAY TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

Other information

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

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Trust 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:

8

EAST LANCASHIRE RAILWAY TRUST LIMITED

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

Responsibilities of Trustees

As explained more fully in the [set out on page ], 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 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 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.

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.

9

EAST LANCASHIRE RAILWAY TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

EAST LANCASHIRE RAILWAY TRUST LIMITED

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

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

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 BL9 6NX

Date:.............................

10

EAST LANCASHIRE RAILWAY TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

Note
Income and Endowments from:
Donations and legacies
2
Investment income
3
Other income
4
Total Income
Expenditure on:
Raising funds
5
Charitable activities
6
Total Expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
£
30,000
8
19,621
49,629
4
(155,734)
(155,730)
(106,101)
(106,101)
792,192
686,091		 Restricted
£
-
-
-
-
-
-
-
-
-
390,427
390,427		 Total
2023
£
30,000
8
19,621
49,629
4
(155,734)
(155,730)
(106,101)
(106,101)
1,182,619
1,076,518		 Total
2022
£
30,000
660
19,621
50,281
31
(63,735)
(63,704)
(13,423)
(13,423)
1,196,042
1,182,619

All of the Trust's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 17.

The notes on pages 13 to 22 form an integral part of these financial statements.

11

EAST LANCASHIRE RAILWAY TRUST LIMITED

BALANCE SHEET AS AT 31 MARCH 2023 (REGISTRATION NUMBER: 01865059)

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Investments
13
Cash at bank and in hand
14
Creditors: Amounts falling due within one year
15
Net current assets
Net assets
Funds of the Trust:
Restricted income funds
Restricted Funds
Unrestricted income funds
Unrestricted Funds
Total funds
17		 2023
£
424,463
390,427
814,890
17,586
202,848
172,994
393,428
(131,800)
261,628
1,076,518
390,427
686,091
1,076,518		 2022
£
444,076
390,427
834,503
55,206
261,217
85,747
402,170
(54,054)
348,116
1,182,619
390,427
792,192
1,182,619

The financial statements on pages 11 to 22 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... ......................................... B Davies M W Kelly Trustee Trustee

The notes on pages 13 to 22 form an integral part of these financial statements.

12

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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.

The Trustees have considered detailed reports submitted which indicate over a three year period its obligations to maintain the railway structures should be met. Although there is an inherent risk that plans may not be achieved, the trustees believe that sufficient financial reserves have been secured to enable it to continue as a going concern.

Exemption from preparing a cash flow statement

The Trust opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

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.

13

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 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.

14

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 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.

Fund accounting

Unrestricted general funds

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

15

EAST LANCASHIRE RAILWAY TRUST LIMITED

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

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.

2 Income from donations and legacies

Donations and legacies;
Contributions from participating local
authorities
3 Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
4 Other income
Rental income
5 Expenditure on raising funds
Movement in investment value		 Unrestricted
funds
Designated
£
30,000
30,000
Unrestricted
funds
General
£
8
Unrestricted
funds
General
£
19,621
Unrestricted
funds
General
£
(4)		 Total
2023
£
30,000
30,000
Total
2023
£
8
Total
2023
£
19,621
Total
2023
£
(4)		 Total
2022
£
30,000
30,000
Total
2022
£
660
Total
2022
£
19,621
Total
2022
£
(31)

16

EAST LANCASHIRE RAILWAY TRUST LIMITED

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

6 Expenditure on charitable activities

Note
Allocated support
costs
Governance costs
7
Maintenance of structures
Development projects		 Unrestricted funds
Designated
£
General
£
131,165
19,919
-
4,650
131,165
24,569
Activity
undertaken
directly
£
Grant funding
of activity
£
19,918
119,672
-
11,493
19,918
131,165		 Total
2023
£
151,084
4,650
155,734
Total
2023
£
139,590
11,493
151,083		 Total
2022
£
59,673
4,062
63,735
Total
2022
£
49,048
10,625
59,673

In addition to the expenditure analysed above, there are also governance costs of £4,650 (2022 - £4,062) which relate directly to charitable activities. See note 7 for further details.

7 Analysis of governance and support costs

Governance costs

Audit fees
Audit of the financial statements		 Unrestricted
funds
General
£
4,650
4,650		 Total
2023
£
4,650
4,650		 Total
2022
£
4,062
4,062

17

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8 Net incoming/outgoing resources

Net outgoing resources for the year include:

Audit fees
Depreciation of fixed assets		 2023
£
4,650
19,613		 2022
£
4,062
19,613

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

Cost
At 1 April 2022
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
£
47,097
47,097
29,528
942
30,470
16,627
17,569		 Trackwork
£
239,640
239,640
123,035
4,793
127,828
111,812
116,605		 Stations
£
636,053
636,053
353,233
12,721
365,954
270,099
282,820		 Bridges
£
57,836
57,836
30,754
1,157
31,911
25,925
27,082		 Total
£
980,626
980,626
536,550
19,613
556,163
424,463
444,076

18

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11 Fixed asset investments

Other investments

Other investments
Other investments
12 Debtors
Due from related undertakings
Prepayments
Accrued income
Other debtors
13 Current asset investments
Listed other shares
Cash deposits
14 Cash and cash equivalents
Cash at bank
15 Creditors: amounts falling due within one year
Other creditors		 2023
£
390,427
2023
£
4,906
29
651
12,000
17,586
2023
£
330
202,518
202,848
2023
£
172,994
2023
£
131,800		 2022
£
390,427
2022
£
24,526
29
651
30,000
55,206
2022
£
326
260,891
261,217
2022
£
85,747
2022
£
54,054

19

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 0SW

17 Funds

Unrestricted funds
General
General Funds
Designated
Maintenance Fund
Development Fund
Total unrestricted funds
Restricted funds
Maintenance Funds
Total funds		 Balance at
1 April
2022
£
523,853
84,909
183,430
268,339
792,192
390,427
1,182,619		 Incoming
resources
£
19,629
30,000
-
30,000
49,629
-
49,629		 Resources
expended
£
(24,565)
-
(131,165)
(131,165)
(155,730)
-
(155,730)		 Transfers
£
17,342
(17,342)
-
(17,342)
-
-
-		 Balance at
31 March
2023
£
536,259
97,567
52,265
149,832
686,091
390,427
1,076,518

20

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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:-

Greater Manchester Council
Engineering works
Building works
Promotion and marketing
Rossendale Borough Council
Previously released to income and expenditure
Release to income this year		 2023
£
183,000
75,000
34,000
292,000
60,000
352,000
(168,570)
(11,493)
171,937		 2022
£
183,000
75,000
34,000
292,000
60,000
352,000
(157,945)
(10,625)
183,430

21

EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted funds
General
£
Designated
£
424,463
-
-
-
116,606
276,822
(4,810)
(126,990)
536,259
149,832		 Restricted
funds
£
-
390,427
-
-
390,427		 Total funds at
31 March
2023
£
424,463
390,427
393,428
(131,800)
1,076,518

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 £131,165 (2022 - £39,773) to the East Lancashire Light Railway Company Limited. Rental income receivable from East Lancashire Light Railway Company Limited was £19,621 (2022 - £19,621). At the balance sheet date the amount due from East Lancashire Light Railway Company Limited was £4,905 (2022 - £24,526).

Bury Metropolitan Borough Council

Bury Metropolitan Borough 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 Bury Metropolitan Borough Council was £Nil (2022 - £12,000).

Rochdale Metropolitan Borough Council

Rochdale Metropolitan Borough 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 Borough Council was £Nil (2022 - £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 £12,000 (2022 - £6,000).

22

Audit Completion Memorandum

East Lancashire Railway Trust limited

31 March 2023

1

The Board of Directors

East Lancashire Railway Trust Limited Town Hall Bury BL9 0ST

25 October 2023

Dear Sirs

Report of our Audit Findings for the year ended 31[st] March 2023

This report highlights key findings from our audit work, which we are required to discuss with those charged with Governance by International Auditing Standard (UK and Ireland)260.

Our responsibility as auditor, is to form and express an opinion on the financial statements prepared by management and discussed by management with the Board. The audit does not relieve those charged with governance and the management from their responsibilities with regard to the preparation of the financial statements.

Our audit is designed primarily to enable us to express our opinion. As such, we carry out tests to support the opinion. These tests may identify areas of weakness which we will report to you. Our tests are not designed to uncover defalcations or other irregularities, nor are they intended to cover all internal controls that management should have in place.

We do not accept any responsibility for any loss occasioned to any third party acting or refraining from acting on the basis of the content of this report, which was not prepared for any other purpose.

We have included matters that require the Trustees attention at Appendix A.

Yours faithfully

Horsfield & Smith

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CONTENTS
Page
Review of the results for the year 4
Review of the closing fnancial positon 5
Audit risks and how they were minimised 6
Misstatements and how they were dealt with 9
Communicaton 10
Internal controls 10
Fees and independence 11
Communicaton with those charged with governance - summary 12
Appendix A 13

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Review of the results for the year

2023 2022 Commentary
£ £
Incoming resources
Appeals and donatons 30,000 30,000 Rossendale council contributons due
Rental income 19,621 19,621
Income from listed investments 8 -
Interest on cash deposits - 660
Total incoming resources 49,629 50,281
Resources expended
The audit of the charity's annual accounts 4,650 4,062
Insurance 304 274
Grant payments 131,165 39,774 To ELLR: maintenance, bridge repairs and consultancy
Legal and professional fees
Bank charges 2 12
Depreciaton of freehold property 942 942
Depreciaton of plant and machinery 1,157 1,157
Depreciaton of fxtures and ftngs 4,793 4,793
Depreciaton of other tangible 12,721 12,721
(Gain)/loss on investments (4) (31)
Total resources expended 155,730 63,704
Net income for the fnancialyear (106,101) (13,423)

4

Review of the closing financial position

2023 2022 Commentary
£ £
Fixed assets
Buildings and structures 424,463 444,076
Investments 390,427 390,427
814,890 834,503
Current assets
Debtors 17,586 55,206
Investments 202,848 261,217 Used to fund grants and funded loan to ELLR last year. Balance has
decreased because the major costs have been paid out of this account.
Cash at bank and in hand 172,994 85,747 Balance increased as income going in and costs being paid out of the
money market account as above
393,428 402,170
Creditors: Amounts falling due within one year
Accruals (131,800) (54,054)
Net current assets 261,628 384,116
Net assets 1,076,518 1,182,619
Funds
Restricted 390,427 390,427
Unrestricted 686,091 792,192
1,076,518 1,182,619

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Audit risks and how they were minimised

Signifcant risks – includingthose that are expected on everyaudit Signifcant risks – includingthose that are expected on everyaudit
Incorrect recogniton of revenue
Our audit approach:
Within ISA240 the assumpton is
that recognising revenue
correctly is a risk on every audit.
We updated our understanding of the income streams and the extent to which they might be subject
to management infuence.
We considered the adequacy / appropriateness of the accountng policy for recognising revenue.
We reviewed the systems for revenue recogniton with emphasis on its completeness and accuracy.
Our fndings:
We found no indicatons that management had atempted to infuence the results improperly.
We found that the systems for revenue recogniton were appropriate to the entty.
Incorrect recogniton of revenue
Within ISA240 the assumpton is
that recognising revenue
correctly is a risk on every audit.		 Our audit approach:
We updated our understanding of the income streams and the extent to which they might be subject
to management infuence.
We considered the adequacy / appropriateness of the accountng policy for recognising revenue.
We reviewed the systems for revenue recogniton with emphasis on its completeness and accuracy.
Our fndings:
We found no indicatons that management had atempted to infuence the results improperly.
We found that the systems for revenue recogniton were appropriate to the entty.
Management over-ride of controls Our audit approach:
In ISA240 there is a second
assumpton that management
will be able to over-ride fnancial
controls.		 We updated our understanding of the controls that exist to ensure that the fnancial records are free
from misstatement.
We tested a sample of transactons to ensure that the expected controls were operatng efectvely.
We reviewed unusual or high value transactons to ensure their validity and correct accountng
treatment.
Our fndings:
We did not fnd any indicatons of over-ride of the controls.
Income from the local authority was in line with expectatons.
We do not consider Income from other sources to be materially misstated.
We have reviewed all expenditure and related correspondence provided. We found no indicaton of
management override.

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Other risks identified at the planning stage

Goingconcern Our audit approach:
ISA570 requires auditors to
evaluate the assumptons behind,
and reasonableness of, the use of
the going concern assumpton
adopted by management in the
preparaton of the accounts.
Current best practce is for
management to follow the
guidance issued by the Financial
Reportng Council in April 2016.		 We reviewed the management minutes and maintenance of structures forecasts.
We considered the funds available and reports on the current state of the structures.
Findings:
ELRT is dependent on the regular contributons from the local authority partners.
There is no indicaton at this tme that the Trust cannot meet its obligatons as they fall due.
Validityof expenses Our audit approach:
We performed substantve tests on a sample of expense items.
Findings:
There was litle evidence that trustees had seen individual invoices. However, expenditure had been
reported in the regular board meetng and there was sufcient documentaton available to determine
the expenditure was bona fde.

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Other risks identfed duringthe course of the audit Other risks identfed duringthe course of the audit
Outstandingleases Findings:
We raised the issue of outstanding leases in previous years.
No progress has been minuted despite draf standard leases being substantally agreed by the two
Councils who currently have no formal lease agreement.
It is imperatve that this mater is addressed before the end of the fnancial year.
Implicatons:
There is a risk that charitable monies may have been expended for maintenance that does not fall
within the charity’s responsibility.
There is an asset within ELRT’s accounts (Heywood Link Trackworks £110,932) that is on land not
owned or leased by the charity.
Although not directly the responsibility of the Trust, the lack of leases, and consequent sub-leases,
has implicatons for East Lancashire Light RailwayCompanyLimited.

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Misstatements and how they were dealt with

Adjusted misstatements Adjusted misstatements Adjusted misstatements Adjusted misstatements
Narratve
None		 Proft & Loss Account
Debit (£’000)
Credit (£’000)		 Balance Sheet
Debit (£’000)
Credit (£’000)		 Proft efect
Unadjusted misstatements
Narratve
None		 Proft & Loss Account
Debit (£’000)
Credit (£’000)		 Balance Sheet
Debit (£’000)
Credit (£’000)		 Proft efect

Other Relevant Matters Relating to the Audit

Other matters none

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Communication

Other matters that have to be communicated in writing or orally

International Auditing Standards require us to communicate the following points to you: Matters relating to related parties. These are covered In the letter of representation. Matters relating to laws and There are no points to report to you. regulations. Matters relating to fraud. There are no points to report to you. Matters where we have had to rely on There are no points to report to you. management representations which are not covered in the letter of representation.

Internal controls

Reporting requirement

ISA(UK and Ireland)265 mandates that the auditor should report to you any significant shortcomings in the systems of internal control.

Bearing in mind that the purpose of the audit is to enable an opinion to be expressed on the accounts, our consideration of the internal controls was limited to the extent that we considered appropriate. We did not carry out a full review of all internal controls.

Within the course of our audit procedures, we did not identify any significant deficiencies in the system of internal controls.

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Fees and independence

We confirm that we are independent of the company for the purposes of audit regulation. We review our independence each year, and report to you immediately if circumstances arise where that independence might be perceived to be at risk.

Fees for audit and non-audit work

Fees(£) Threat(Y/N) Safeguard
Audit of the fnancial statements. 2,830.00p lus VAT N
Compilaton of the accounts from the company’s
account records.		 1,020.00 p lus VAT Y The accounts and results for the year are
discussed in detail with management before
presentaton to the Board. We consider that
this give sufcient assurance to the Board that
it has met its obligatons.

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Communication with those charged with governance - summary

Reporting requirement

Notfed
Respectve responsibilites of management, and those
charged withgovernance,and the auditor.
Overview of the planned scope and tming of the audit.
Comments about qualitatve aspects of the accountng
and fnancial reportng practces of the company.
Details of signifcant maters and issues arising during the
audit that have been discussed with management.
Confrmaton of the auditor’s independence.
Notfcaton of any maters that might afect the
independence of the auditor.
Details of non-audit work carried out by the auditor, with
details of the safeguards in place to minimise threats to
independence.
Identfcaton or suspicion of fraud involving
management which may have a material efect on the
accounts.
Identfcaton of any non-compliance with applicable laws
and regulatons.
Details of any expected modifcaton to the audit report.
Details of unadjusted misstatements.
Details of any signifcant maters in connecton with
relatedpartes.
Any signifcant maters relatng to Going Concern.

International Standards on Auditing (UK and Ireland) require the auditor to communicate formally with management and with those charged with governance. This Audit Summary document highlights key issues, and also records our compliance with ISA260 – Communication with those charged with Governance.

This report should be distributed to management and to all directors.

As noted in the covering letter, our responsibility as auditor, is to form and express an opinion on the financial statements prepared by management and discussed by management with the Board. The audit does not relive those charges with governance and the management from their responsibilities with regard to the preparation of the financial statements.

None identified.

None. None. None. None.

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Appendix A – replaces a management letter

----- Start of picture text -----
Points raised 2023 Assessment Trustees Reply Timescale to resolve
Going Concern -the charity has incurred Significant – needs attention.
a significant deficit in the year. It is also
acknowledged that there is a large sum
to be spent on structures. These
structures will not be able to be
maintained at the current rate of loss.
Interest at current market rates is not While the funds are administered by the
being earned on the money market Local Authority in Bury, there must be an
account. acknowledgement that these funds belong
to the Trust, which is entitled to receive
interest on them. If interest is not
available, the Trustees ought to give
detailed consideration to where the funds
are held.
At the outset the Trust was endowed
with 2 amounts intended to generate
funds for the repair of structures. It was
not the intention that the funds should
be used to cover the cost of repairs. The
Trustees need to consider how they are
going to replace them.
----- End of picture text -----

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Points raised 2021 Assessment Trustees Reply Timescale to resolve
The point raised below has not been resolved by the Trustees. This requires urgent
atenton.
The positon regarding agreeing and
signing the leases and sub-leases needs
to be resolved as a mater of urgency.		 This point has been outstanding for many
years. The Trustees have a responsibility
to resolve all outstanding issues.
This mater is signifcant as it afects not
only the Trust but also the sub-lessee.

Please contact us if you would like to discuss any of these issues in more detail.

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