Company registration number: 01865059 Trust registration number: 701034 EAST LANCASHIRE RAILWAY TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 31 MARCH 2024 *AOFIQMUSV• 1111212024 COMPANIES HOUSE A32
EAST LANCASHIRE RAILWAY TRUST LIMITED CONTENTS Reference and Administrative Details Trustees, Report 2to6 Independent Auditors, Report 7toll Statement of Financial Activities 12 Balance Sheet 13 Notes to the Financial Statements 14to24
EAST LANCASHIRE RAILWAY TRUST LIMITED REFERENCE AND ADMINISTRATIVE DETAILS Chairman B Davies Trustees B Davies N E Bayley R Chapman Cllr A C Cheetham Cllr J Harris Cllr J Johnson M W Kelly CRLaw Cllr P Malcolm Cllr A Mcmahon C E Morris Cllr B Sheerin Secretary L C Ridsdale Reglstered Office Town Hall Knowsley Street Bury Lancashire BL9 OSW The Trust Is Incorporated in Wales. Company Re8lstratlon Number 01865059 Trust Reglstratlon Number 701034 Bankers National Westminster Bank Audltor Horsfield & Smith Tower House 269 Walmersley Road Bury Lancashire BL9 6NX
EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES, REPORT The Trustees, who are directors for the purposes of cornpany law, present the annual report together with the financial statements and auditors, report of the charitable company for the year ended 31 March 2024. Trustees and officers The trustees and officers Sering during the year and since the year end were as follows: Trustees: B Davies N E Bayley R Chapman Cllr A C Cheetham Cllrj Harris (appointed 24 May 20231 Cllr J Johnson M W Kelly CRLaw Cllr P Malcolm {appointed 5 June 2023} Cllr A Mcmahon (appointed 19 May 20231 C E Morr15 Cllr P Rush {resigned 5 June 20231 S M 5erridge {resigned 19 May 2023) Cllr B Sheerin ChaSrman: 8 Davles Secretary: L C Ridsdale {appolnted 29June 2023) Structure• 8ovemance 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 Llmited {ELLRI a fvrther partner on the Trust board of management. Recruitment ond appolntment 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), (collectively the Member Partners") the right to nominate three members each to the Board of Management. Organisotionol structure The East Lancashire Railway Trust 15 a company Ilmited by guarantee and therefore has no share capltal.
EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES, REPORT Objertives and activities Objerts ond aims The object of the Trust is to promote the permanent preseniation 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 villa8es on the line from Heywood to Rawtenstall. Publlc 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. Financlal review During 2023124 the Trust has continued to support the planned programme for the maintenance of the structures and investments in projects to enable the continued development of E.L.L.R. Co Ltd {"ELLR l. To thls end the trust have made granls totalling £181,735 {2023: £131,165) to ELLR as mana8er of various projects on behalf of the company for the following: 2024 2023 Maintenance of strurtures Contributlon to marketing Strategy Buckley Wells development project 171,789 9,946 119,672 4,175 7,318 181,735 131,165 Where possible the Trust aims to minimise current expenditure, whilst malntalning a rollin8 pro8ramme of Inspections and assessments to ensure structures continue to be In an operational condition. Maintenance expenditure durlng the year relates these ongoing expenses. Whilst the Inspection program has found all structures to be fit for rall operations It has highllghted extensive repair work needed and a new five year rollin8 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 ha5 made a contribution of £9,946 to an overall marketing strategy for the promotion of the heritage lifte.
EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES, REPORT Policy on reserves One of the aims of the Trust is to provide finance to maifttain the stwctures on the railway line between Heywood and Rawtenstal. Typical expenditure on any one project is in excess of £lOO,000 and can be as much as £IM. 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 2024 are £124,22912023 £375,512). 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 expendlture, the Trust should aim to increase its free reserves. One of the major rlsks faced by the Trust is having insufficient funds to rneet future maintenance requirements. To mitigate this risk the Trustees have a rollin8 pro8rarnme of annual inspection and assessment of structures, wlth 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 supplernent the Trust's funds wherever possible the Trustees actlvely 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 expendlture is undertaken. Investment pollcy ond objertlves Under the Memorandum and Artlcles of Associatlon, the Trust has the power to make any Investment whlch the Trustees see flt. 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 dernand. Financial instruments Objertives andpollcles The Trust's activities expose it to a number of financial risks Includlng credlt rlsk, cash flow risk and liquidity risk. Cashflow rlsk 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 Borou8h Council. The credit risk on liquid funds 15 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.
EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES, REPORT Liquidity risk In order to maintain Ilquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Trust uses a mixture of long-term and short-terrn 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 Ihe medium term, and the Board and the member Partners have 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 regardin8 the adoption of the going concern basis can be found in the Statement of Accounting Policie5. Statement of Responslbllltles The Trustees {who are also the directors of East Lancashlre Railway Trust Limlted for the purposes of company lawl are responsible for preparing the Trustees, report and the financlal statements In ccordance with appllcable 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" Cornpany 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 IncomSng resources and appllcation of resources, Including its income and expenditure, of the charitable cornpany for that perlod. In preparing these financial statements, the Trustees are required to: • selert suitable accounting policies and apply them consistently• observe the methods and principles in the Charities SORP; make judgements and estirnates that are reasonable and prudent: state whether appllcable accountin8 Standards, comprlslng FRS 102 have been followed, subject to any rnaterlal 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 wlth reasonable accuracy at any tirne the financial position of the charitable company and enable them to ensure that the financial statements cornply with the Companies Act 2006. They are also responslble for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detedion 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.
EAST LANCASHIRE RAILWAY TRUST LIMITED TRUSTEES, REPORT Disclosure of information to audltor 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. Reappolntment of auditor In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointrnent of Horsfield & Smith as auditor of the Trust is to be proposed at the forthcoming Annual General Meetin8. The annual report was approved by the Trustees of the Trust on behalf by.. B Davies Chairman and Trustee
EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF EAST LANCASHIRE RAILWAY TRUST LIMITED Opinion We have audited the financial staternents of East Lancashire Railway Trust Limlted {the 'Trust'l for the year ended 31 March 2024, 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 Pradicel. In our oplnion the financlal staternents: give a twe and fair view of the state of the Trust's affairs as at 31 March 2024 and of its Incoming resources and applicatlon of resources, including its income and expenditure. for the year then have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) IISAS {UK}l and applicable law. Our responsibilities under those standards are further described in the audltor 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 lo our audit of the flnancial statements In the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responslblllties In atcordance wlth these requlrements. We belleve that the audit evldence we have obtained is sufficlent and approprlate to provlde a basis for our opinlon. Concluslons relatlng to goin8 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 8oin8 concern for a period of at least twelve months from when the original flnancial statements were authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to 8olng concem are described in the relevant sections of this report.
EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EAST LANCASHIRE RAILWAY TRUST LIMITED Other Informatlon 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 auditorfs report thereon. Our opinion on the financlal statements does not cover the olher Informalion and, except to the extent othen*vise explicitly stated In our report. we do not express any form of assurance conclusion thereon. In connectlon wlth our audit of the financial statements, our responsiblllty Is to read the other information and, in dolng 50, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materialty misstated. If we identify such material inconsistencles 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 thal there is a materlal misstatement of ihis other Informatlon, we are required to report that fact. We have nothln8 to report In th55 regard. Oplnlon on other matter prescrlbed by the Companles 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 fSnanclal statements are prepared Is consistent with the financial statements; and the Trustees, Report has been prepared in accordance wilh appllcable le8al requlrements. Matters on whlch we are requlred to report by exceptlon In the Ilght of our knowledge and understandlng of the Trust and Its envlronment obtalned In the course of the audit, we have not identified materlal misstatements in the Trustees, Report. We have nothlng to report in respect of the followln8 matters where the Companies Act 2006 requires us to report to you rf, in our opinion: adequate accounting records have not been kept, or returns adequate for our audlt have not been received from branches not visited by us; or the financial statements are nol In agreement with the accountin8 records and returns; or certain disclosures of Trustees remuneration specified by law are not made; or we have not received all the information and explanatlons we require for our audlt. the trustees were not entitled to prepare the financial statements in accordance wlth the small companles regime and take advantage of the small companies. exemptions In preparing the trustees'report and from the requirement to prepare a strategic report.
EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF EAST LANCASHIRE RAILWAY TRUST LIMITED_ Responsibilities of Trustees As explalned more fully in the statement of responsibilities set out on page S, the Trustees are responsible for the preparation of the financial statements and for bein8 Satisfied that they glve a true and falr view, and for such internal control as the Trustees determine is necessary to enable the preparatlon of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responslble for assessin8 the Trust's ability to continue as a going concern, disclosin& as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust orto cease operations, or have no realistic alternative but to do so. Audltor responslbllltles for the audlt ol the financlal statements Our objectives are to obtain reasonable assurance about whether the financlal statements as a whole are free from materlal misstaternent, whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wlth ISAS {UKI will always detect a material misstatement when it exists. Mlsstatements can arise from fraud or error and are considered material if, indivldually or in the a88regate, they could reasonably be expected to Influence the economlc declslons of users taken on the basls of these flnanclal statements. The extent to whlch our procedur•s are capable of detertlng Irregularltles. Includln8 fraud Irre8ularltles, Includlng fraud, are Instances of non-compllance wlth laws and re8ulatlons. We desS8n procedures In Ilne wlth our responsibilities, outlined above, to detect material misstatements in respect of Srregularities, includin8 fraud. The extent to whlch our procedures are capable of detecting irregularities, includlng fraud Is detailed below: We considered the nature of the limited CoMpanS industry and Its control environment.: and reviewed documentation of their policies and procedures relating to fraud and compliance with laws and regulatlons. We also enquired of management about thelr own Sdentification and assessment of the risks of irregularities. had a dlrect effect on the determlnatlon of materlal amounts and dlsclosures In the financlal statements. These included UK Companies Act. tax legislation. and do not have a direct effect on the financial statements but compllance wlth whlch may be fundamental to the limited companVs 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 amon8 the audit engagement team regardlng the opportunities and incentives that may exist within the organisatlon for fraud and how and where fraud mi8ht occur in the financlal statements.
EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EAST LANCASHIRE RAILWAY TRUST LIMITED In common with all audits under ISAS {UK), we are also required to perfom) specific procedures to respond to the risk of managemenl 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 blas; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the rlsks identrfied included the following: reviewlng flnanclal 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 Identlfy any unusual or unexperted relatlonshlps that may indicate risks of material misstatement due to fraud; enquirlng of management concernlng actual and potentlal litlgatlon and clalms, and instances of non-compliance with laws and regulations,. and readln8 mlnutes of meetings of those charged wlth governance. Because of the inherent Ilmitatlons of an audlt, there Is a rlsk that we wlll not detect all Irre8ularltles, including those leading to a material rnisstatement in the financial statements or non-compllance with regulatlon. Thls risk Increases the more that compliance with a law or regulatlon Is removed from the events and transactions reflected in the financial statements, as we will be less likely to becorne aware of instances of non-compllance. 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 fvrther description of our responsibilities forthe audSt of the flnancial statements Is located on the Financial Reporting Council's webslte at: www.frc.org.uVoudltors/oudltors-assuronce/oudltors.responslbillties-fvr-thfroudit-of.the-flnonclal-5tatements 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 $0 that we might state to the Trust's Trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responslbllity to anyone other than the charitable company and its Trnstees as a bodyi for our audlt work, for this report, or for the opinions we have formed. 10
EAST LANCASHIRE RAILWAY TRUST LIMITED INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF EAST LANCASHIRE RAILWAY TRUST LIMITED Peter Nicol BSC FCA {Senlor Statutory Audltor) For and on behalf of Horsfield & Smith, Slatutory Audltor Tower House 269 Walmersley Road 8ury Lancashlre BL9 6NX 11
EAST LANCASHIRE RAILWAY TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES) Total 2024 Total 2023 Unrestrlrted Restricted Note Income and Endowments from: Donatlons and le8acies Investment income Other income 30,000 22,902 19.621 30,000 22,902 19,621 30,000 19,621 Total Income 72,523 72,523 49,629 Expendlture on: Charitable activities {206.513) (206,513) (15S,7341 Total Expenditure Gainsllosses on investment assets {206,513) 1206,513) {155,7341 29 29 Net expendlture 1133,9611 {133,9611 1106,101) Net movement in funds (133,9611 1133,9611 1106,101) Reconciliatlon ol funds Total funds brought fonNard 686,091 390,427 1,076,518 1,182,619 Total funds carried forward 16 552,130 390,427 942,557 1,076,518 All of the Trust's activities derlve from continuing operatlons durlng the above two perlods. The funds breakdown for 2023 is shown In note 16. The notes on pages 14 to 24 form an integral part of these financial staternents. 12
EAST LANCASHIRE RAILWAY TRUST LIMITED BALANCE SHEET AS AT 31 MARCH 2024 (REGISTRATION NUMBER: 01865059) 2024 2023 Note Flxed assetg Tangible assets Investments 404,850 279,435 424,463 390,427 io 684,285 814,890 Current assets Debtors li 27,825 359 235,222 17,586 202,848 172,994 Investments 12 Cash at bank and in hand 13 263,406 393,428 Credltors: Amounts falling due withln one year 14 15,134) (131,8001 Net Current assets 258,272 261,628 Net a55ets 942,557 1,076,518 Funds of the Trust: Restrlrted Income funds Restricted Funds 390.427 390,427 Unrestrlcted Income funds Unrestricted Funds 552,130 686,091 Total funds 16 942,557 1,076,518 The fi ancial statements on pages 12 to 24 were approved by the Trustees, and authorised for Issue B Davies Chairman and Trustee M W Kelly Trustee The notes on pages 14 to 24 form an integral part of these financial statements. 13
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 l Actounting policies Summary of significant ac¢ounting 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 Ihe years presented, unless otherwise stated. Statement of compllance The financial statements have been prepared In accordance with Accounting and Reporting by Charities: Statement of Recommended Practice {applicable to charities preparin8 their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)) (issued in October 2019) - (Charities SORP (FRS 1021), the Financial Reportin8 Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. 8asls of preparation East Lancashire Railway Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inttially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Golng concern The financial statements have been prepared on a going concern basls. The trustees assess whether the use of 8oln8 concern Is appropriate l.e. whether there are anv material uncertaintles related to events or condltlons 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 and Member Partners 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, Ihe trustees believe that sufficient financial reserves have been secured to enable it to continue as a golng concern. Exemptlon from preparing a cash flow statement The Trust opted to early adopt Bulletin I 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, gfts, 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. 14
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 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 appllcable expenditure headlng ihat aggregate slmllar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basls consistenl with the use of resources. Charitable actlvities Charitable expenditure cornprises those costs incurred by the Trust in the delivery of its activities and sepiices 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 cornpllance wllh constitutional and statutory requirements. Taxatlon The Trust 15 considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the deflnltlon of a charitable company for UK corporation tax purposes. Accordingly, the Trust is potentially exempt from taxation in respect of income or capltal galns recelved withln cate8OTies covered by Chapier 3 Part 11 of the Corporatlon Tax Act 2010 or Sectlon 256 of the Taxatlon of Chargeable Galns Act 1992, to the extent that such Income or 8alns are applied exclusively to charitable purposes. Tangible fixed assets Individual fixed assets costing £1,000. or more are inltially recorded at cost, less any subsequent accumulated depreciation and subsequent accurnulated impairment losses. Oepreclatlon and amortlsatlon Depreciatlon Is provided on tanglble flxed assets so as to wrlte off the cost or valuatSon, less any estlmated residual value, over their expected useful economic life of 50 years. Asset class Buildings, trackwork and strurtures Depreciation method and rate 50 years straight line Investments Listed Investments are inltially 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. 15
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Debtors Short term debtors are rneasured 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 usln8 the effective interest method, less any Impalrment. Cash and cash e9uivalents 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. FSnanclal Instruments Classlflcatlon Flnancial assets and financial Ilabllitles 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 residual interest in the assets of the Trust after deducting all of Its liabilities. Recognitlon and measurement All flnanclal assets and liabilitles are Inltlally measured at transactlon prlce Ilncludlng transactlon costs), except for those flnancial assets cla55rfied as at falr value through profit or10s5. whlch are Inltlally measured at fair value {whlch Is normally the transaction prlce excludln8 transactlon costs), unless the arrangement con$tuteS a financing transaction. If an arrangement constitutes financin8 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. FinancSal assets and liabilities are only offset in the staternent of financial position when, and only when there exists a legally enforceable ri8ht to set off the recognised amounts and the Trust intends elther to settle on a net basis, or to reallse the asset and settle the liabllity slmultaneously. Financial assets are derecognised when and only when a) Ihe contractual rights to the cash flows frorn 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 havlng retained .sorne, but not all, siEnrficant risks and rewards of ownership, has transferred control of the asset to another partv. Financial liabilities are derecognised only when the obligatlon specified in the contract is discharged, cancelled or expires. Fund a¢countlng Unrestricted generalfunds Unrestricted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectives of the Trust, 16
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Unrestrirted deslqnatedfvnds Designated funds are unrestricted funds set aside for speciflc purposes at the discretion of the trustees. Restrlrtedfunds 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 donatlons and legatles Unrestrlcted funds Designated Total 2024 Total 20Z3 Donations and legacles; Contrlbutions from partlclpating local authorilies 30,000 30,000 30,000 30,000 30,000 30,000 3 Investment Income Unrestrlcted fvnds General Total 2024 Total 2023 Interest receivable and similar income; Interest receivable on bank deposits 22,902 22,902 4 Other Income Unrestrlcted funds Total 2024 Total 2023 General Rental income 19,621 19,621 19,621 17
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 5 Expenditure on charltable activitles Unrestricted funds Designated General Total 2024 Total 2023 Note Allocated support costs 179,832 21,737 4,944 201,569 4,944 151,084 4,650 Governance costs 179,832 26,681 206,513 155,734 Activity undertaken dlrectly Grant fundlng of actlvlty Total 2024 Total 2023 Malntenance of structures 19,834 171,789 9,946 191,623 9,946 139,590 11,493 Development projects 19,834 181,735 201,569 151,083 In addition to the expenditure analysed above, there are also governance costs of £4,94412023 £4,650) which relate directly to charitable activities. See note 6 for further details. 6 Analysis of governance and support costs Governance costs Unrestricted funds General Total 2024 Total 2023 Audit fees Audit of the flnancial statements 4,944 4,944 4,650 4,944 4,944 4,650 18
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 7 Net incomin8loutBoln8 resource$ Net outgoing resources forthe year include: 2024 2023 Audit fees Depreciation of fixed assets 4,944 19,613 4,650 19,613 8 Staff costs No trustees, nor any persons connected with them, have received any remuneration frorn the Trust during the year. The Trust is mana8ed by Bury Metropolitan Bourgouh Counc51. The Council receives no renurneration for staff time taken to manage the Trust. 9 Tangible fixed assets Freehold Propertv Trackwork Statlons BrldBes Total Cost At l April 2023 47.097 239,640 636,053 57,836 980,626 At 31 March 2024 47,097 239,640 636,053 57,836 980,626 Depreclation At l April 2023 Charge forthe year 30,470 127.828 365,954 31,911 556,163 942 4,793 12,721 1,157 19,613 At 31 March 2024 31,412 132,621 378,675 33,068 575,776 Net book value At 31 March 2024 15,685 107,019 257,378 24,768 404,850 At 31 March 2023 16,627 111,812 270,099 25,925 424,463 19
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10 Fixed asset investments Other Investment$ 2024 2023 Other investments 279,435 390,427 11 Debtors 2024 2023 Due from related undertakings Prepayments Accrued Income Other debtors 9,811 14 4,906 29 651 12.,000 18,000 27,825 17,586 12 Current asset investments 2024 2023 Llsted other shares Cash dep051ts 359 330 202,518 359 202,848 13 Cash and cash equlvalents 2024 2023 Cash at bank 235,222 172,994 14 Creditors: amounts fallSn8 due within one year 2024 2023 Other creditors 5,134 131,800 20
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15 Trust Statu5 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 Councll The address of Its registered office is: Town Hall Knowsley Street Bury Lancashire BL9 OSW 16 Funds Balance at I April 2023 Incomlng resources Resources expended Balance at 31 March 2024 Unrestrl¢ted funds Geneml General Funds 536,259 42,523 (26,652) 552,130 Deslgnated Maintenance Fund Development Fund 97,567 52,265 30,000 (127,5671 152,2651 1179,8321 149,832 30,000 Total unrestrlrted funds 686,091 72,523 {206,4841 552,130 Restricted funds Maintenance Funds 390,427 390,427 Total lunds 1,076,518 72,523 1206,484) 942,557 21
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 The specific purposes for which the funds are to be applied are as follows: The malntenance 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 incorne towards the long terrn 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 rnonies comprising the fund are shown on the balance sheet as fixed assets Investments, constituting the full amount of the monles on deposit so treated, and as part of the cash at bank. The development fund (Previously the non-derelict land grontfundj Represents the amount in respect of capital payments towards expenditure necessary prior to the re-opening of the rallway. Both the income and capltal of this fund may be used forthls purpose. The analysls of the origlnal make up of the fund and Its subsequent appllcatlon is as follows:_ 2024 2023 Greater Manchester Councll Engineerlng works Building works Promotion and marketlng 183,000 75,000 34,000 183,000 75,000 34,000 292,000 60,000 292,000 60,000 Rossendale Borough Coun¢il 352.000 (180,0631 {9,9461 352.000 (168,570) {11,493) Previously released to Income and expenditure Release to income this year 161,991 171,937 22
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17 Analysls of net assets between funds Unrestricted funds General Total funds at 31 March 2024 Restricted funds Tangible fixed assets Fixed asset investments 404,850 404,850 279,435 263,406 15,134) 279,435 110,992 Current assets Current liabilities 152,414 15,1341 Total net assets 552,130 390,427 942,557 18 Related party transactlons During the year the Trust made the followin8 related party transactions: East Lancashire Light Rallway Company Umited 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 Brants totalling £181,73512023 - £131,165) to the East Lancashire Light Railway Company Limlted. Rental income receivable from East Lancashlre Llght Railwav Cornpany Limited was £19,62112023 - £19,621). The railway does not make a predetermined annual contribution to the maintenance of structures. In the year , the railway incurred a cost of £138,5020 {2023 £87.830} on the repairs to a building owned by the local authority partner. At the balance sheet dale the amount due from East Lancashire Light Railway Company Limited was £NII {2023 - £4,905). Bury Metropolltan Borough Councll Bury Metropolitan Borough Councill nominates 3 members to the Trust's Board of Mana8ement. The Council makes an annual contribution of £12,000 for the maintenance of the railway structures. At the balance sheet date the amount due from Bury Metropolitan Borough Council was £Nil {2023 - £Nill. Rochdale Metropolltan 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 forthe maintenance of the railway structures. At the balance sheet date the amount due frorn Rochdale Metropolltan Borough Council was £Nil 12023 - £Nil). 23
EAST LANCASHIRE RAILWAY TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 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 forthe maintenance of the railway structures. At the balance sheet date the amount due from Rossendale Borough Council was £18,00012023 - £12,000). 24