Surrey & Hampshire Canal Society Limited - Charities report - 19.1

REGISTERED COMPANY NUMBER: 01296593 (England and Wales)

REGISTERED CHARITY NUMBER: 273085

Report of the Trustees and

Financial Statements for the Year Ended 31 December 2018

for

Surrey & Hampshire Canal Society Limited

Surrey & Hampshire Canal Society Limited

Contents of the Financial Statements

for the Year Ended 31 December 2018

Page

Report of the Trustees

1 to 3

Independent Examiner's Report

4

Statement of Financial Activities

5

Statement of Financial Position

6 to 7

Notes to the Financial Statements

8 to 13

Surrey & Hampshire Canal Society Limited

Report of the Trustees

for the Year Ended 31 December 2018

The directors, as trustees, present their annual report and accounts for the year ended 31 December 2018. They are

satisfied with the performance of the charity during the year and consider that the charity is in a strong position to

continue and further its activities during the coming year, and that the charity's assets are adequate to enable it to fulfil its

obligations.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are as follows:

1.To promote and secure the future of the Basingstoke Canal as a navigable waterway and a multi-function amenity for

the use and enjoyment of the whole community.

2. To campaign for responsible ownership of the navigation encompassing appropriate funding levels, necessary

maintenance and adequate water supply at all times.

3. To support the Basingstoke Canal managing authority by, for example, monitoring the condition of the canal, raising

funds and providing voluntary manpower for improvement projects and specific maintenance tasks.

4. To protect, conserve, restore and raise awareness of the natural features and historic structures of the Basingstoke

Canal for the benefit of present and future generations.

5. To seek opportunities to develop the Basingstoke Canal, such as the creation of moorings, the improvement of

navigation and bank-side facilities, and extension of the navigation.

The Basingstoke Canal, and the land adjacent to it, is entirely owned by the councils of the two counties through which it

passes, i.e. Surrey County Council and Hampshire County Council, and is freely accessible to the public. In carrying out

its objectives, the charity seeks to achieve an improvement in the physical condition and facilities of the canal and

appreciation of its merits by all sections of the public.

Significant activities

In pursuance of the objectives set out above, the charity has:

1. Continued to organise volunteer working parties for engineering projects, principally, in the year under review.

2. Organised working parties engaged in general maintenance work and clearance of encroaching vegetation.

3. Continued to lobby at local government level for the continuation and improvement of funding for the operation and

maintenance of the canal.

4. Carried out work at Chequers Wharf to renovate and rebuild the wharf to permit full wheelchair access. In addition

the charity commenced the project at Farnborough Road in Aldershot to create a new set of permanent and temporary

revenue earning moorings. This project will complete in 2019.

5. Organised events, both social and boating.

6. Monitored applications for development within the area of the canal and raised objections where it was considered

that the character of the canal would be prejudiced.

7. Attempted to raise awareness of the canal by providing displays in local museums and libraries, illustrating the part

played by the canal in the social history of the area, and giving talks to local interest groups.

8. Continued in attempts to ensure that the canal is given adequate consideration in planned changes to its urban setting,

involving presentations to and discussions with the planning authorities and prospective developers.

9. Worked with local authorities to ensure adequate attention is given to historic structures remaining from the disused

western section of the canal and to encourage the creation of a pathway following the original canal line as closely as

possible.

10. Continued to participate in discussions with various bodies to try to secure improvements to the water supply to the

canal in the longer term.

In carrying out its activities involving physical work on the canal itself and the structures forming part of it, and on the

adjacent land, the charity has exclusively enhanced facilities in public ownership. Any lobbying or discussions involving

local authorities, whether the county council owners or the riparian district councils through which the canal passes, have

been carried out exclusively to further the charity's aims as set out above. There is no restriction of benefit accruing to

any one section of the public to the exclusion of any other. The charity does not carry out any activities with the aim of

creating private benefit, nor are the Trustees aware of any private benefit accruing therefrom.

FINANCIAL REVIEW

Principal funding sources

The financial statements are set out on pages 5 to 12 and have been prepared in accordance with the Charities SORP

(FRS 102) '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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland and the Companies Act 2006. As stated in the introduction to this report,

the trustees consider the financial performance by the charity during the year to have been satisfactory.

The Statement of Financial Activities shows a net deficit for the year of a revenue nature of £28,058 (2017: surplus of

£59,256) and net realised incoming resources of a capital nature of £nil (2017: £nil) making an overall realised net

deficit for the year of £28,058 (2017: surplus of £59,256).

Total Reserves at the year end stand at £411,887 (2017: £439,945).

Specific changes in fixed assets.

The charity purchased a parcel of land at Colt Hill in Odiham as a potential site for a new revenue earning boat basin

towards the western end of the canal. Other minor items of equipment purchased in the year were expenses in the

Income and Expenditure account rather than being capitalised.

In addition to the fixed assets shown in the balance sheet, the charity has owned for many years a number of other assets

which have been donated or fully expensed in the past. At the end of the year these include the following items:

Two Bantam tugs and four barges (estimated value £27,000)

Two workboats (estimated value £8,000)

Transit van (estimated value £1,000).

The charity also owns beneficial title to a strip of land held to maintain the canal corridor to the west of the Greywell

Tunnel, and a strip of land at Sheerwater held for similar reasons. The land has restricted use by way of covenants and

the trustees believe the value of these land holdings to be insignificant.

Reserves policy

The policy on reserves is, provided suitable projects can be identified, to expend funds as soon as expedient on the main

charitable objectives and not accumulate them, save as is necessary for year to year operation.

Financial performance of the charity's subsidiary undertakings

The trading subsidiary of the charity Surrey and Hampshire Canal Cruises Limited has had a profitable trading year as

summarised in Note 7 to the accounts. The trading company achieved profits of £10,020 (2017: £9,549), and has

donated the whole of this sum to the Charity since the year end.

The trading subsidiary of the charity John Pinkerton Canal Cruises Limited has had a profitable trading year as

summarised in Note 7 to the accounts. The trading company achieved profits of £20,859 (2017: £17,096), and has

donated the whole of this sum to the Charity since the year end.

Profits for the year reflect the additional earnings from the biennial Farnborough Air Show in 2018, as well as the

growing success of the new trip boat Kitty in the Woking sector of the canal.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

The charity is governed by the memorandum and articles of association established under the Companies Acts. The

charity is constituted as a company with a board of directors who are also trustees of the charity. The directors, acting as

a body, are responsible for all policy and strategic decisions.

Recruitment and appointment of new trustees

The trustees are all volunteers and have not been specifically recruited.

Induction and training of new trustees

Certain trustees have, during the year, attended a local training event. New trustees, on induction, are offered

appropriate Charity Commission material.

Relationship between the charity and its subsidiaries.

The charity owns the beneficial interest in the whole of the share capital of two subsidiaries, Surrey & Hampshire Canal

Cruises Limited and John Pinkerton Canal Cruises Limited and receives 100% of their annual profits by way of

donation.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01296593 (England and Wales)

Registered Charity number

273085

Registered office

Island House

Moor Road

Chesham

Buckinghamshire

HP5 1WA

Trustees

P Riley

R M Leech

G N A Faller

R Cansdale

J J Wall

S R Black

- resigned 19/5/2018

R S King

K Redway

J Hill

J E Buckley

T Inskip

K G Sankey

N R Sutherland

- appointed 19/7/2018

Company Secretary

T Inskip

Independent examiner

A C Carpenter

Barnbrook Sinclair

Chartered Accountants

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

Approved by order of the board of trustees on 18 April 2019 and signed on its behalf by:

P Riley - Trustee

Independent Examiner's Report to the Trustees of

Surrey & Hampshire Canal Society Limited

Independent examiner's report to the trustees of Surrey & Hampshire Canal Society Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2018.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your 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.

Independent examiner's statement

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:

1.

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts 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

4.

the accounts 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 accounts to be reached

A C Carpenter

Barnbrook Sinclair

Chartered Accountants

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

18 April 2019

Surrey & Hampshire Canal Society Limited

Statement of Financial Activities

for the Year Ended 31 December 2018

31/12/18

31/12/17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

16,988

-

16,988

65,748

Charitable activities

Covenanted profits of subsidiaries

34,479

-

34,479

30,245

Other trading activities

2

1,806

-

1,806

2,875

Investment income

3

202

-

202

255

Total

53,475

-

53,475

99,123

EXPENDITURE ON

Raising funds

Raising donations and legacies

79,232

-

79,232

37,755

79,232

-

79,232

37,755

Other

2,301

-

2,301

2,112

Total

81,533

-

81,533

39,867

NET INCOME/(EXPENDITURE)

(28,058

)

-

(28,058

)

59,256

RECONCILIATION OF FUNDS

Total funds brought forward

436,216

3,729

439,945

380,689

TOTAL FUNDS CARRIED FORWARD

408,158

3,729

411,887

439,945

Surrey & Hampshire Canal Society Limited

Statement of Financial Position

At 31 December 2018

31/12/18

31/12/17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

91,798

-

91,798

58,096

Investments

7

101

-

101

101

91,899

-

91,899

58,197

CURRENT ASSETS

Debtors

8

152,939

-

152,939

157,407

Cash at bank

170,756

3,729

174,485

230,322

323,695

3,729

327,424

387,729

CREDITORS

Amounts falling due within one year

9

(7,436

)

-

(7,436

)

(5,981

)

NET CURRENT ASSETS

316,259

3,729

319,988

381,748

TOTAL ASSETS LESS CURRENT LIABILITIES

408,158

3,729

411,887

439,945

NET ASSETS

408,158

3,729

411,887

439,945

FUNDS

10

Unrestricted funds

408,158

436,216

Restricted funds

3,729

3,729

TOTAL FUNDS

411,887

439,945

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies

Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 18 April 2019 and were signed on its behalf by:

P Riley -Trustee

Surrey & Hampshire Canal Society Limited

Notes to the Financial Statements

for the Year Ended 31 December 2018

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement

of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the

Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements,

as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

-

the requirements of Section 7 Statement of Cash Flows;

-

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

-

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44,11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

-

the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

-

the requirement of Section 33 Related Party Disclosure paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

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 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.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, 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 accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Plant and machinery

- 20% on cost

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and

liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or

bodies having similar objects to the charity.

2.	OTHER TRADING ACTIVITIES

31/12/18

31/12/17

£

£

Fundraising activities

1,806

2,875

3.	INVESTMENT INCOME

31/12/18

31/12/17

£

£

Deposit account interest

202

255

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31/12/18

31/12/17

£

£

Depreciation - owned assets

1,940

1,407

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2018 nor for the year

ended 31 December 2017.

Trustees' expenses

No expenses were paid to trustees, save minor travel costs and reimbursement of postage and stationery costs

paid for on behalf of the charity.

6.	TANGIBLE FIXED ASSETS

Freehold property

Improvements to property

Plant and machinery

Totals

£

£

£

£

Cost

At 1 January 2018

50,412

12,993

27,325

90,730

Additions

35,642

-

-

35,642

At 31 December 2018

86,054

12,993

27,325

126,372

Depreciation

At 1 January 2018

-

12,993

19,641

32,634

Charge for year

-

-

1,940

1,940

At 31 December 2018

-

12,993

21,581

34,574

Net book value

At 31 December 2018

86,054

-

5,744

91,798

At 31 December 2017

50,412

-

7,684

58,096

The value of the land and buildings is substantially the freehold land, and is therefore not depreciated.

7.	FIXED ASSET INVESTMENTS

Shares in group undertakings

£

Market value

At 1 January 2018 and 31 December 2018

101

Net book value

At 31 December 2018

101

At 31 December 2017

101

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Surrey & Hampshire Canal Cruises Limited

Nature of business: Buying and selling goods and services

%

Class of share:

holding

Ordinary

100

31/12/18

31/12/17

£

£

Aggregate capital and reserves

100

100

Profit for the year

10,020

9,549

John Pinkerton Canal Cruises Limited

Nature of business: Provision of canal cruises

%

Class of share:

holding

Ordinary

100

31/12/18

31/12/17

£

£

Aggregate capital and reserves

1

1

Profit for the year

20,859

17,096

The net profit of the subsidiaries is stated before charging covenanted donations to the holding company of

£30,879 (2017: £26,645) and includes intergroup expenditure of £3,600 (2017: £3,600).

The main trading activity of the subsidiaries is the operation of passenger boat services on the Basingstoke

Canal, including the sale of refreshments and merchandise.

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/18

31/12/17

£

£

Amounts owed by group undertakings

150,876

155,097

Other debtors

2,063

2,310

152,939

157,407

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/18

31/12/17

£

£

Other creditors

7,436

5,981

10.	MOVEMENT IN FUNDS

At 1/1/18

Net movement in funds

At 31/12/18

£

£

£

Unrestricted funds

General fund

436,216

(28,058

)

408,158

Restricted funds

Restricted Revenue Accumulated Funds

3,729

-

3,729

TOTAL FUNDS

439,945

(28,058

)

411,887

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

53,475

(81,533

)

(28,058

)

TOTAL FUNDS

53,475

(81,533

)

(28,058

)

Comparatives for movement in funds

At 1/1/17

Net movement in funds

At 31/12/17

£

£

£

Unrestricted Funds

General fund

376,960

59,256

436,216

Restricted Funds

Restricted Revenue Accumulated Funds

3,729

-

3,729

TOTAL FUNDS

380,689

59,256

439,945

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

99,123

(39,867

)

59,256

TOTAL FUNDS

99,123

(39,867

)

59,256

A current year 12 months and prior year 12 months combined position is as follows:

At 1/1/17

Net movement in funds

At 31/12/18

£

£

£

Unrestricted funds

General fund

376,960

31,198

408,158

Restricted funds

Restricted Revenue Accumulated Funds

3,729

-

3,729

TOTAL FUNDS

380,689

31,198

411,887

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

152,598

(121,400

)

31,198

TOTAL FUNDS

152,598

(121,400

)

31,198

All the unrestricted funds of the charity are free from restrictions and may be applied towards the objects of the

charity at the discretion of the trustees. Restricted funds are primarily assets set aside for works related to the

ecology and environment of the canal.

11.	RELATED PARTY DISCLOSURES

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

12.	SHARE CAPITAL

The charity is incorporated under the Companies Acts and is limited by guarantee, each member having

undertaken to contribute such amounts not exceeding one pounds as may be required in the event of the company

being wound up whilst he or she is still a member or within one year after.