The trustees present their annual report and financial statements for the year ended 30 June 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The principal activity of the company during the year continued to be the archiving and preservation of transport related film, video and photographic material.
Since its formation in 2001 Online Transport Archive (OTA) continues to make progress with the archiving and preservation of transport-related film and photographic material. It has become a valuable resource for authors and publishers in the transport field.
Since January 2004, the company has been registered as a charity. Its stated object, as registered with the Charity Commissioners, is:
‘…to advance the education of the public, particularly but not exclusively, in the history of railway, tramway, road, air and water transport through the collection of film, colour slides, photographic negatives and prints, videotape, electronic images in all formats and other artefacts.’
Its activities can be summarised as:
• care and administration of transport-related film and photograph collections
• conservation work relating to these collections
• assistance to bona fide authors/researchers in this field
• availability of the Archive to bona fide publishers thereby ensuring that the collections are made available to the public at large
The trustees have reviewed the objects, goals, services and objectives of the charity in the light of Public Benefit requirement and can confirm that the OTA serves the public benefit. This annual report includes evidence as to how the charity strives to meet needs. The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The charity fulfills its obligations through a number of avenues:
• It provides a safe and secure environment for the preservation of a world class collection of historical material this ensuring its availability for future generations;
• It creates opportunities for people to volunteer their services to assist in the charity’s work on cataloguing and conserving the collection;
• It makes material available free of charges to other charities and not for profit organisations in order to enable them to improve the information that they can offer those interested in their projects
• Bona Fide researchers are welcome to the offices in order to undertake research on transport and social history
• Content is made available and discussion engendered through an active social media profile
• Through links to other organisations, such as the Land Transport Archive Network, it shares experience and knowledge with other organisations involved in the conservation of historic records
OTA involvement in the authoring of transport titles has continued in the year under review as has the provision of images to third-party authors and publishers. Amongst publications that have featured OTA images are: Rails around Manchester (Transport Treasury), Bournemouth Trolleybuses (Adam Gordon), Bradford Trolleybuses (Key Publishing), Nottingham Trams (Middleton Press), British Trolleybus Systems: London & South East (Pen & Sword), Southern Way 58 (Crecy), South Wales Railway Gallery (Pen & Sword), Lost Tramways of Ireland: Dublin (Graffeg), Lost Tramways of England: Bolton (Graffeg), Lost Tramways of Scotland: West of Scotland (Graffeg), Backtrack (Atlantic), Blackpool Conduit Trams (Turner), British Trolleybus Systems: Lancashire etc (Pen & Sword), British Trolleybus Systems: London & South East (Pen & Sword), Southern Way 60 (Crecy), Steam in the Blood (Crecy), Chapelon: Genius of French Steam (Crecy), Railways of East Sussex (Unique) and Somerset & Dorset: The Post-war Years (Unique)
The accounts for 2022/23 show the impact of the significant bequest received from the estate from the late Arthur Weise. The £630,000 was received towards the end of the financial year and so its arrival has increased the OTA’s reserves. The directors agreed that the bulk of the money received should be invested to support the OTA’s long-term aims of acquiring its own property to ensure the security of the collection. The directors were aware the company would benefit from the bequest but not its actual size until it was received. There remains a small sum held by the solicitors pending any possible claim for taxation from the HMRC; it is hoped that the residual amount will be passed to OTA during the 2023/24 financial year. The directors agreed to transfer £10,000 from the bequest to support the ongoing work of digitally transferring the film collection. Over the past two years, since Arthur Weise’s death, the directors have been formulating a policy for the purchase of a property. Initially, it had been hoped that the funds would have permitted the acquisition of a new 4,000 square foot structure as part of the new development in Shrewsbury; when discussions first commenced, £600,000 would have funded this work and also left a sum for contingencies and the start of fitting out. However, the war in Ukraine and the subsequent spike in fuel prices have had an adverse affect on the costs of building work – up 50% since discussions started – largely as a result of the steep increase in the cost of concrete and steel (both of which are energy intensive to produce). As a result, whilst discussions with the developer are ongoing, the directors are exploring other avenues for the acquisition of a building. These negotiations are continuing at the present time.
During 2022/23, the Archive received further important film and photographic donations and collections/materials. Notable amongst these have been historically important collections (or parts of collections) from Mike Cozens (via Dennis Kerrison), Barry Cross, Paul Creswell (administered on behalf of the National Trolleybus Association), Karl Ehrke, Carl Isgar, Fred Ivey, E. A. (Ted) Gahan, J. W. (Jack) Gahan, Tony Gerrard, David Gibbs, Dennis Gill, Dave Goodall, David Janes, London County Council Tramways Trust, Peter Johnson, Roger Manley, Gavin Martin (via Ray Wilkinson), Edgar Richards (via Phil Prosser), Chris Thornburn and Ray Wilkinson.
The number of enquiries relating to future deposit of collections continues to increase notably. In the same period material from OTA-held collections has been published in a number of transport-related magazines and books, with material being requested from several publishers and other bodies.
The two offices currently occupied by OTA offer secure and attractive working environments and, as a result, it has proved possible to undertake a considerable amount of conservation work on various collections. The work undertaken over the year in transferring collections to low-acid storage boxes has had the benefit both of making many of the collections more accessible – aiding the process of scanning and cataloguing – whilst also optimising the space available in order to accommodate the new collections that have been passed to the OTA over the past 12 months. This process is ongoing as the number of collections either held by, or offered to, the OTA continues to grow. We have also benefited during the year from developing close connections with other archives and from advice from the National Archives; a consortium of transport-based archives – the Land Transport Archive Network – continues to function and OTA has been actively involved almost from its launch. More recently, the OTA has joined the web-based Line Societies Interest Group; this is a forum for largely railway societies that hold archives to meet and discuss issues relating to the handling of transport-related archive material. The contractual arrangement with thetransportlibrary.co.uk has continued and, as more images are uploaded to their site, it generates increasing income for OTA as well as making more images available to a wider audience. The OTA’s own website continues to generate interest. Alongside this, OTA maintains a social media presence through Facebook and the selective use of images on this has generated further interest; the Facebook page is currently updated three times a week. The number of unsolicited requests for OTA to become custodians of collections is testament to its greater visibility.
The leases on the current premises continue until December 2024 (Roy Fletcher Centre) and June 2027 (The Wightman Building). The expectation is that the former will be automatically renewed for a further three years.
Covid, the consequences of Brexit and other issues have affected a number of the publishers with whom the OTA has worked closely over the years. One publisher has largely pulled out of publishing road transport titles, for example, but there are new publishers with whom connections are being made and the enquiries from third party authors and publishers for images continues to grow both in Britain and, increasingly, from overseas as awareness of the breadth of the collection becomes more widely known.
The OTA is making good progress and has worked hard to ensure effective storage of its collections, whilst continuing to work hard to make material available to the enthusiast community.
After making appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The company’s reserves, at the end of the financial year, stood at £651,609, largely as a result of a significant request received during the financial year from the estate of the late Arthur Weise.
Whilst the prime aim of the OTA is to meet its charitable objectives, the Trustees, having reviewed the risks to which the OTA is exposed, are of the opinion that the charity could incur unexpected and unbudgeted costs.
As a result, the Trustees have resolved to establish reserves both to ensure against unexpected loss of income, and to provide for future activities, not least being the development of the OTA’s plans for a secure, environmentally controlled site in which to accommodate its collection. This building – part of a two centre approach by the charity (the other being a town centre office that will act as a portal to the collection in order to engage with the community and provide access to the collection).
The OTA notes the Charity Commission’s recommendations about the usual level of reserves; these should be generally about three times the level of expenditure on an annual basis excluding exceptional circumstances. The OTA’s normal running expenses are circa £20,000 per annum and so, having noted the Charity Commission’s guidance, the OTA’s reserves should be – excluding extraordinary circumstances – about £60,000.
The OTA’s plans for the development of the two sites – the secure climate controlled storage facility and the town centre portal – will mean that, as funds are raised to support the work (which is estimated to cost in all over a period of time between £1.5million and £2million), the level of reserves will inevitably exceed the recommended level over the short to medium term.
The costs of transferring the collection into archival standard low acid storage boxes is recognised by the Trustees as being an essential part of ensuring the long-term survival of the collection and essential to the storage of the collection once the clime controlled warehouse facility is completed. To this end, the Trustees have approved the use of the interest generated from the reserves to fund the purchase of these low acid storage boxes as and when required.
The Trustees will review this policy at least annually, normally after the Annual General Meeting has approved the OTA’s accounts, to review the £60,000 reserve and to confirm whether that target is still an appropriate figure. The Trustees will minute any decision to retain the policy as it currently is, in order to demonstrate that it has carried out the review.
The OTA is a charitable company limited by guarantee incorporated in 2001 and registered as a charity on 2004 The Charity’s Memorandum of Association sets out its objects and powers and its Articles of Association sets out its governance. In the event of the Company being wound up members are required to contribute £10.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The directors of the company are also the charity trustees for the purposes of charity law and under the company’s Articles are known as Trustees. All trustees/directors are elected at the AGM and hold the role for three years. At the end of each three-year period, each trustee/director can be re-elected for a further three-year period. A new trustee/director can be appointed by the existing Board during the course of the year but each new co-opted trustee/director must be confirmed in his or her position at the first available AGM after his or her co-option.
The Trustees meet a minimum of six times per year and are responsible for strategic direction and policy. Day to day operational management of the charity is handled by the Chairman, Treasurer and Secretary. The OTA has no paid employees.
All the Trustees have an interest in and/or are already involved in charities/voluntary organisations. They are therefore familiar with the roles, funding, management and regulation of charities. On appointment/election new Trustees are given a briefing by the Chairman and receive a set of briefing papers as detailed in the charity’s protocols.
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Online Transport Archive Limited (the charity) for the year ended 30 June 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Online Transport Archive Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 Monkmoor Road, Shrewsbury, Shropshire, SY2 5AG.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
The charity's objective is the preservation of transport related film, video and photographic material. All such materials and collections have been donated to the charity so have no direct cost. The Directors, therefore, consider that it is not possible to place a value on them. However, they are now taking positive steps to catalogue and record the collections held.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Royalties, reproduction and writing fees
Royalties paid over/Comp copies
Conservation Mats/Storage Containers
Production costs/Transfer to digital
Director Expenses
Rent
Rates
Postage and stationery
Travelling expenses
Sundry expenses
Bank charges
Legal
Accountancy
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The Directors meet a number of expenses on behalf of the charity for which they are reimbursed. During the period the Directors we reimbursed a total of £2,196 (2022: £2,474).
The charity has about 25 members and a small number of non-members who give up their time to assist with scanning, sorting and transportation of collections as well as the cataloguing of materials and other activities that support the ongoing work of the charity.