The Trustees present their annual report and financial statements for the year ended 31 March 2025.
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 company's governing documents, 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 Charity aims to 'provide a non-profit making, community transport service for the benefit of the residents of Erewash and surrounding areas in the interests of social welfare and for the preservation of health of those in need, hardship and distress by reason of age, infirmity, mental or physical ability with the object of improving their condition of life'
Services may be used by community groups/individuals meeting our eligibility criteria and who are affiliated with us and have pre-booked in advance. Services assist vulnerable children and adults to maintain independence and provide improved life quality, increase choice and assist with social integration.
Currently three types of service are provided for those eligible:
Dial-a-Bus (door to town shopping)
Group Transport (community and eligible groups)
Contract work (home to school/adult care centre transport)
Public Benefit
The Charity refers to the Charity Commissions general guidance on public benefit when reviewing its aims and objectives and planning future activities.
Governing Documents-Trustee Recruitment
Erewash Community Transport Ltd (ECTL) is a Registered Charity and Company Limited by Guarantee operating in accordance with current legislation (Companies Act ‘85 and Charity Commission) and by its Constitution and Mem. & Articles of Association.
Election of Trustees
As required by the Articles of Association, newly elected Trustees and one third of those remaining must retire annually by rotation. 2024 sees the retirement and reappointment of Martyn Coldicott.
When appointing Trustees, the Board considers our requirements and any specialist skills candidates may have, in accordance with current legislation determined by law. Candidates must be nominated by existing parties with the Board's agreement, in an 'ex-officio' capacity (without voting rights).
Organisational Structure
Trustees must be aged 18+ and the Board must consist of a minimum of 3 (with no maximum limit). Trustees are responsible for the Scheme’s administration and hold meetings (including Sub-committee) regularly and as required to discuss development of the Scheme. Two Managers employed by Trustees each having delegated authority to facilitate day to day operations.
Risk Management
Trustees ensure a Risk Management system is used to regularly assess, identify and control potential risk with formal Trustee only meetings held as required. The professional services of an outside organisation are employed to ensure compliance with Health & Safety and Employment Law.
Trustee Induction and Training is available to ensure Trustees understand their legal obligations under Charity / Company Law; Trustees are encouraged to attend induction training so they are familiar with policies, procedures and working practices.
Working relationships
Working relationships are established with:
Nottinghamshire and Derbyshire County Council, on whose behalf services are provided.
Nottingham County Council for funding provision
Erewash Borough Council for the final year (2024) of their group subsidy provision
Community Transport Association UK for advice and support and provision of MiDAS Training materials via annual affiliation
Wendleberry Marketing for ongoing provision of developmental and marketing services
Internal/External Factors
The entirely self-funded Dial-a-Bus service continues to operate in a reduced capacity.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the company should undertake.
Charitable Activities
The provision of specialised transport services.
The charity receives no external funding other than from Nottinghamshire County Council for the payment of Annual CTA Membership fee and one-off funding for the provision of development and marketing.
Investment Policy and Objectives We have the power to invest to generate funds for continuation and development of services.
Reserves Policy
We will accumulate and hold reserves at such levels required to even out future fluctuations in income and expenditure whilst maintaining service provision. We are required by law to ensure sufficient reserves are held (cash/assets) to be realised if necessary to cover costs involved in the event the Scheme ‘winds up’. Our accounts show we can cover all costs involved.
The Trustees has assessed the major risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The company is a company limited by guarantee and governed by its Memorandum and Articles of Association and its Constitution. The company is a registered charity and acts entirely as a non profit making organisation. The company registration number is 3289587. The charity registration number is 1059738.
Trustees and their interests
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:
Name of Trustee
Senior Staff members delegated day-to-day management
Mrs Tina Appleby (Finance) Company Secretary
Ms Jackie Hrynczyszyn (Personnel) Company Secretary
Elected Representative
Elected Representative of Erewash Borough Council for the period Jun 23-24 is Cllr. Linda Burns.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Trade Creditors
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 22 days (2024: 4 days) purchases, based on the average daily amount invoiced by suppliers during the year.
Review and Future Plans 2025/26 Frank Phillips, Chairman
As always, I begin by thanking our staff for their hard work over the past year; our continued success and development is due to their diligence and continued dedication to services and passengers.
This year we were again fortunate to receive funding from Nottinghamshire County Council’s Innovation and Sustainability Fund for the further provision of Marketing and Development services, which are provided by Wendy Turland, from Wendleberry Marketing.
Since utilising her expertise, there is no doubt that Wendy’s marketing and development skills, have targeted many new eligible groups, which resulted in new services being provided and this year being our busiest on record since we began operating in 1984!
Our management services for Community Transport Swadlincote Ltd (CTSL) continues to work well and it is gratifying to note that, although we live in uncertain times where essential funding for services for vulnerable and older people is being cut or withdrawn and many CT and community groups are closing or struggling to continue, CTSL and ECTL both continue to flourish and grow as independent, successful organisations.
Management services for both schemes are provided in person, on site or remotely; this method of management provision generates income for both schemes and works exceptionally well due to the shared practices and procedures and, the level of staff experience utilised for each organisation. My grateful thanks go to ECTL Co-managers Tina Appleby and Jackie Hrynczyszyn, Office Administrator, Linda Castle, Snr Driver Trainer Darren Reynolds and Driver Trainer Jayne Plunkett.
Early 2024 saw the introduction by Derbyshire County Council of new mandatory measures and training requirements relating to safeguarding procedures; there is doubt about the benefits these measures will provide for passenger safety and welfare, however consideration must be given to the potential financial impact due to the associated cost and time implications.
We are proud of our ongoing commitment to MiDAS Training which is provided for all staff, in addition to our own (more CT focussed) training, using our qualified staff; Snr Driver Trainer, Sean (Darren) Reynolds and Driver Trainer, Jayne Plunkett (whom we are also very proud of), between them, Sean and Jayne have amassed over forty years of hands-on CT experience.
Future plans include further development of our current services for eligible groups who can benefit from our transport services and the provision of new replacement vehicles, planned for 2025. I look forward to another successful year of operation for us all at Erewash Community Transport Ltd.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Erewash Community Transport Limited (the company) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the company’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the company’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. 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 company as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Erewash Community Transport Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 1, Hallam Fields Road, Ilkeston, Derbyshire DE7 4AZ .
The financial statements have been prepared in accordance with the company's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The company is a Public Benefit Entity as defined by FRS 102.
The company 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 company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and 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 a reasonable expectation that the company 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 company 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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the company 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).
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 company 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 company's balance sheet when the company 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 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 company’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the company’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.
Voluntary income
Contract transport
Group transport
Dial a bus
Local government grants and gifts
Department of transport
Bus hire
Vehicle repairs
Vehicle insurance
Radio site rental and upkeep
Fuel
Rent, rates and water
Telephone
Office, equipment and stationery
Sundry expenses
Bank charges
Legal and professional fees
Advertising
Computer maintenance
Audit fees
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 company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
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 total financial commitments of the company were £8,479 (2024: £nil).
Trustees received reimbursement for travel costs for attending meetings which amounted to £nil (2024: £nil).
The company had invested in the share of Little Transport Limited in previous years and as such any transactions are considered to be a related party. In the year the company sold its shareholding in Little Transport Limited.
During the year the company made sales of services and rent to Little Transport Limited totalling £26,040 (2024: £19,020) and purchases of goods and services totalling £70,947 (2024: £48,671).