## **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.
5. 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**
- 1.1 The ELLR Company, through the sub lease from the ELR Trust and as reflected in its working draft Service Level Agreement with the Line Engineer is responsible, for a number of structures that either support and/or cross the railway between Bury/Rawtenstall and Bury/Heywood. The Company also have the responsibility through the sub lease to insure the structures.
## **2.0 ISSUES**
- 2.1 The following amounts were included in the 2021/222 budget for maintenance on structures.
||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**|
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- 2.2 Various costs have been incurred during 2021/22 for administration, incident response, inspections, preparing programmes for inspections, assessments, works, carrying out site supervision and other issues. Administration costs also cover; liaison with the East Lancashire Light Railway Company, other Council officers and preparation of the Annual Report to ELR Trust Board. Details and costs of the above items are shown below.
## **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**|
|---|---|
- 2.3 The approved financial programme in last year’s report to the ELR Trust Board for inspections, assessments, planned and reactive maintenance is shown in section 7.1 of this report.
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.
- 2.4 Representatives from the Office of Rail and Road (ORR) visited the ELR in May 2021 and paid particular attention to the management/condition of the structures along the railway.
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**
- 3.1 Principal Inspections are a close examination of all inspectable parts of the structure and are carried out at appropriate intervals (6 to 8 years).
- 3.2 General inspections are carried out every two years (except when a Principal Inspection is carried out) and involve a visual examination of representative parts of the structure.
- 3.3 Underwater inspections are carried out to applicable structures every two years to check for defects/scour to submerged areas of structures.
- 3.4 Assessments are carried out to ensure that structures are capable of meeting the load requirements of the railway and are to be carried out in conjunction with the Principal Inspection programme.
- 3.5 Private structures - It is the responsibility of the owner of private structures to inspect and assess their structures or commission such inspections and assessments. When these structures have a potential impact on the railway, the structure owner should submit the findings to the railway operator to satisfy the operator the structure is safe, fit for purpose and does not represent a hazard to the railway.
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.**
- 4.1 It was noted in last year’s report, the programme of principal inspections and assessments was a little behind schedule, this is now back up to date except for assessment result to four structures (inspection carried out), these results are imminent.
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.
- 4.2 In order to maintain the ELR structures in an operational condition ongoing inspections and maintenance works need to continue. The updated proposed programme for 2022/23 to 2026/7 is included in Section 7.1 for approval.
## **5.0 Programme of Inspections, Assessments and Works (2015/16 - 2019/20)**
- 5.1 A rolling programme of principal inspections/assessments, general and underwater inspections and monitoring of existing defects is required to manage the condition of the ELR structures to comply with legislation and to meet the condition of the ELLR Company’s insurance policy for structures and leasing obligations.
- 5.2 The current principal Inspection and assessment programme for the 47 structures that are critical to the operation of the East Lancashire Railway on both the Bury/Rossendale and Bury/Heywood lines commenced in 2010/11 on a 12 year rolling programme, typically 4 structures per year. This programme is now complete.
- In accordance with current guidelines, the comments/recommendations
5
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.
- 5.3 Proposed maintenance works including reactive and planned maintenance are required to maintain the integrity of structures. These works are jointly prioritised by the Bury Metropolitan Borough Council’s Head of Engineering, acting in the capacity of the Engineer to the ELR Trust in consultation with Richard Law - Operations Director, ELLR Company, to meet the following:
- a) Matters relating to Health and Safety.
- b) The requirements of the Office of Rail & Road. c) Works to prevent potential closure of the line. d) Avoid medium term works with major expenses. e) Avoid long term works with major expenses.
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).
- 5.4 Spring Side Farm Bridge – Strengthening works are due to commence in February 2023 with further refurbishment works to follow in May/June 2023.
The existing 5mph speed restriction should remain in place and apply to all rail operations until the strengthening works have been completed.
- 5.5 Higher Woodhill Viaduct (Calrows Viaduct), Bury – Higher Woodhill Viaduct is a seven span structure consisting of four masonry arch spans and three spans constructed from steel girders with a reinforced concrete deck. All masonry and one steel section span are over ground and two steel spans are over the River Irwell.
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.
6
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.
- 5.6 Lumb Subway, Rossendale – The latest assessment shows the structure requires remedial works to meet full operational requirements, however, further investigation is to be carried out to confirm this. Until these investigations have been carried out and the findings assessed, a 5mph speed restriction should be applied to rail operations over this structure.
A sum of £15,000 is included in the works programme for 2023/24 to meet the cost of further investigations and reassessment.
- 5.7 Expenditure has been minimised as much as possible in previous years to ready finances for the high value contracts identified in Section 7.1, Table 2 below. However, despite this, and given the revised costs for the refurbishment of Higher Woodhill Viaduct and current inflation rates, it is clear the commuted sum(s) currently used for the cost of maintenance to structures will no longer be sufficient to meet the proposed and future works programme.
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.
- 5.8 The proposed 5 year rolling maintenance programme and projected expenditure is shown in Section 7.1, Table 2 below. The overall programme is designed to maintain the rail structures in an operational condition, comply with legislation and to meet the condition of the ELLR Company’s insurance policy for structures.
7
## **6.0 OTHER ISSUES.**
- 6.1 Strongstry Bridge experienced issues with a partial collapse of an adjacent culvert on Lancashire County Council (LCC)/Private land.
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.
- 6.2 As detailed in the 2020/21 report on structures, a new culvert was discovered under the New Hall Hey Level Crossing in Rawtenstall towards the end of 2020 as a consequence of a United Utilities apparatus failure. Whilst much of the culvert sits below the adopted highway, there is a section within the limits of the lease of the ELR Trust. As a result, the Trust will be responsible for the future inspection and maintenance of this section (unless there is evidence to the contrary) and this is to be added to the structures register accordingly.
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.
- 6.3 Alderbottom High Viaduct - Alderbottom High Viaduct is an ELR maintained bridge that is not on the operational line, it carries a cycle track over the River Irwell in Rossendale. Some time ago, officers from the estates departments at both Bury and Rossendale councils were involved in the process of passing the bridge (and other land) over to Sustrans/Rossendale Borough Council as they are the only party(s) gaining a benefit from the viaduct.
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.
8
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.**
- **7.0** Tables 1, and 2 below provides an updated overview of the current works programme with regards to the principal structures on the ELR.
- 7.1 Table 1 shows the last approved programme of proposed works and expenditure (actual expenditure for 2021/22 is shown in Section 2 above)
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
* Special Inspection – Structure(s) not on ELR operational line. (Appendix 1 updated 10/01/2019)
** 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.
- B02 - Structures within the jurisdiction of Bury MBC
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|
13
## _**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
- 35) B19/001 Stubbins Subway 36) B19/003 Alderbottom Low Viaduct 37) B02/092 Burrs Railway Bridge 38) B02/090 Tan Pits Road Railway Bridge 39) B02/397 Station Approach South Ramp 40) B19/017 Stubbins Lane Bridge
Structures to be inspected/assessed 2028/29: 41) B02/094 Summerseat Railway Bridge 42) B02/456 Roch Viaduct 43) B19/016 Gasworks Reservoir Bridge
- Structures to be inspected/assessed 2029/30: 44) B02/433 Metrolink Railway Bridge 45) B03/596 M66 Railway Bridge 46) B03/103 Pilsworth Road Railway Bridge
Private Structures -Details as submitted by structure owner unless otherwise stated
47) B02/340 Park Road Railway Bridge
* Special Inspection – Structure(s) not on ELR operational line. (Appendix 1 updated 10/01/2019)
** 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.
- B02 - Structures within the jurisdiction of Bury MBC
- B03 - Structures within the jurisdiction of Rochdale MBC
B19 - Structures within the jurisdiction of Rossendale Borough Council
14
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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 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 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:
- give a true and fair view of the state of the Trust's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 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:
- 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
- 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 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- 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.
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.
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation; and
- 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.
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:
- 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;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of meetings of those charged with governance.
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
2
|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|
3
## 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**||
|||||
5
## 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.|
6
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.|
7
|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.|
8
## 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
9
## 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.
10
## 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.|
11
## 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.
12
## 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 -----**
13
|**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.
14