The Trustees who are also directors for the purpose of company law present their report and the unaudited financial statements of the charity for the year ended 31 July 2023.
Reference and administrative details
Registered charity name Tanfield Railway Trust Ltd
Charity registration number
Company Registration Number 03232794
Principal office
Tanfield Railway
Marley Hill
Sunniside
Newcastle Upon Tyne
NE16 5ET
The Trustees
D W Smith (Chairman)
T M Hartley
R G Charlton
I Cowan
P Weightman
L Griffiths (Appointed September 2022)
Secretary
A M Pickering
Independent Examiner
Stephen Lamb FCA
TC Group
12 Bessemer Court
Hownsgill Park, Knitsley Lane,
Consett, County Durham
DH8 7BL
The overriding objects of the charity are to advance education by acquiring housing, exhibiting, conserving, restoring and repairing objects and collections of educational nature. The charity looks to establish, acquire and maintain museums, galleries, libraries and other places where such purposes may be achieved and where educational research, enquiry and the exchange and dissemination of relevant views and information may happen.
Public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education when reviewing the charity's aims and objectives and in planning future activities.
Grant making policy
The charity has established its grant making policy to achieve its objects for the public benefit. The application of the funds by way of grants is to institutions. The trustees consider they have met the public benefit when distributing the grants.
The following sections of achievements and performance and financial review form the strategic report of the charity.
The charity received £99,720 in donations and legacies, rental income of £12,000 and rechargeable expenditure of £1,310.
In addition to the above the charity received a restricted grant receivable of £75,000. As at the year end none of the restricted funds were expended.
The charity had grants payable during the year amounting to £44,814, operational costs of £13,098 and support costs of £2,843. Included in that figure was fees payable of £612 for the independent examination.
With the above proceeds and expenditure the Tanfield Railway (TR) continues to develop under the TR Trust and TR Company. Major work on the main structure of the 1854 Marley Hill engine shed, the oldest in the world in which steam locomotives are still housed and maintained, has been completed. We have worked with authors on the publication of two books about the history of TR ready for our tercentenary in 2025. To tell and present the story of TR to the public we continue to liaise with Durham County Council on recreating a section of waggonway at Causey to represent the 1725 origins, and interpretation of the c1840 site of a stationary haulage engine. Together with the TR Company, we have arranged for major boiler repairs to Twizzell, a locomotive built in 1891 by Robert Stephenson & Co and used locally, this represents the final phase of the Tanfield Branch.
The charity has low governance costs comprising professional fees.
Grants over £5,000 made during the year to institutions are as detailed in the accounts.
There were no material fundraising costs during the year.
Related party transactions are disclosed as applicable in the notes to the accounts.
There was a net income and net movement in funds for the year amounting to £127,275.
The trustees feel that the activity reflects the profile and standing within the local geographic area. The trustees would like to record their appreciation for all the financial support received from benefactors during the course of the year.
Reserves policy
The Unrestricted Fund represents the unrestricted funds arising from past operating results.
The Trustees are satisfied that the balance of the Fund is an acceptable level of reserves given the nature of receipts against expenditure.
In considering the financial obligations of the charity, the trustees have resolved to maintain a minimum reserve, being the net current assets of the charity.
The trustees are delighted to have made valuable education contributions to the wider community community as a result of this income and hope to be able to do so for many years to come.
The trustees feel that the activity reflects the profile and standing within the wider community. The impact for future years' expenditure is self evident and the trustees would like to record their appreciation for all the financial support received from benefactors during the course of the year.
The reserves, being the net current assets of the charity, stand at £273,559 of which £198,559 are unrestricted and £75,000 are restricted.
Structure Governance and Management
Tanfield Railway Trust Ltd is constituted by Memorandum and Articles of Association and is a company limited by guarantee. It was incorporated on 1st of August 1996 as a company and the company number is 3232794. It was registered as a charity on 13th of November 1998 with a charity number 1072449.
Recruitment and appointment of new trustees would be in line with the Memorandum and Articles of Association and with the consent of the trustees. The criteria set for the suitable candidate would be someone who is sensitive to the needs and demands of the organisation. There is no chief executive officer.
The day-to-day affairs are undertaken by the trustees. All major decisions are taken collectively by the trustees and all the trustees give of their time freely. The trustees are unpaid and details of any related party transactions are disclosed as applicable in the notes to the accounts. The arrangements for setting the pay of the charity’s employees are the sole domain of the trustees. The charity does not employ anyone at the moment.
New trustees receive induction and training although there are no formal policies.
Risk review
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to manage our exposure to the major risks.
The major risks faced by the charity are principally those related to the implementation of the operations of the charity and the execution of the restoration of old structures and trains.
These risks are mitigated by the trustees implementing relevant policies to ensure the smooth running of the charity and its restorations works carried out.
Report back and review procedures strengthen these safeguards to ensure public benefit is achieved.
The trustees' annual report was approved by the trustees on 19 February 2024. The trustees report is signed on behalf of the board of trustees by:
I report to the trustees on my examination of the financial statements of Tanfield Railway Trust Ltd ('the charity') for the year ended 31 July 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 accounts of the charity (and the company for the proposes of company law) 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 accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
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 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.
Stephen Lamb FCA
Independent Examiner
TC Group
12 Bessemer Court
Hownsgill Park, Knitsley Lane,
Consett, County Durham
DH8 7BL
Rental income
Charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Tanfield Railway Trust Ltd is a public benefit entity and a private company limited by guarantee, registered in
England and Wales and a registered charity in England and Wales. The address of the registered office is: Tanfield Railway, Marley Hill, Sunniside, Newcastle Upon Tyne, NE16 5ET
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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 financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded top the nearest £
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus we trustees continue to adopt the going concern basis of accounting in preparing of the financial statements.
Unrestricted funds are available for use at the discretion of the trustees to further any of the
charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or
commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or
through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or
endowment funds.
All incoming resources are included in the statement of financial activities when entitlement has
passed to the charity; it is probable that the economic benefits associated with the transaction
will flow to the charity and the amount can be reliably measured. The following specific policies
are applied to particular categories of income:
• income from donations or grants is recognised when there is evidence of entitlement to the
gift, receipt is probable and its amount can be measured reliably.
• legacy income is recognised when receipt is probable and entitlement is established.
• income from donated goods is measured at the fair value of the goods unless this is
impractical to measure reliably, in which case the value is derived from the cost to the donor
or the estimated resale value. Donated facilities and services are recognised in the
accounts when received if the value can be reliably measured. No amounts are included for
the contribution of general volunteers.
• income from contracts for the supply of services is recognised with the delivery of the
contracted service. This is classified as unrestricted funds unless there is a contractual
requirement for it to be spent on a particular purpose and returned if unspent, in which case
it may be regarded as restricted.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any
VAT which cannot be fully recovered, and is classified under headings of the statement of
financial activities to which it relates:
• expenditure on raising funds includes the costs of all fundraising activities, events,
non-charitable trading activities, and the sale of donated goods.
• expenditure on charitable activities includes all costs incurred by a charity in undertaking
activities that further its charitable aims for the benefit of its beneficiaries, including those
support costs and costs relating to the governance of the charity apportioned to charitable
activities.
• other expenditure includes all expenditure that is neither related to raising funds for the
charity nor part of its expenditure on charitable activities.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The charity has elected not to depreciate fixtures and fittings, as the value is immaterial compared to the coalesced tangible assets.
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 net income/(expenditure) for the year.
At each reporting end date, the reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charities balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Basic financial liabilities, including creditors and bank loans are recognised at transaction price.
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 at transaction price.
Financial liabilities are derecognised when the charities contractual obligations expire or are discharged or cancelled.
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported, besides the valuation of the charities freehold property at the year end.
Grants Receivable
Rechargeable Expenses
Charitable activities
Expenditure on charitable activities
Expenditure on charitable activities
Rates
Printing and stationary
Materials
Expenditure on charitable activities
Expenditure on charitable activities
Cleaning
General office
Professional fees
Governance costs includes payments to the independent examiner of £612 (2022: £673).
No remuneration or other benefits from employment with the charity or a related entity were
received by the trustees. No expenses were reimbursed to the trustees.
The average monthly number of employees during the year was:
Tanfield Railway Trust Ltd is a registered charity and therefore is not liable to income tax or
corporation tax on income derived from its charitable activities, as it falls within the various
exemptions available to registered charities.
The fund is used to unlock development projects for the benefit of the Tanfield Railway, such as construction of or improvements to museum or storage buildings, land acquisition, or other major investments in the Tanfield Railway to further the educational aims of Tanfield Railway Trust.
There were no disclosable related party transactions during the year (2022 - none).