British Commercial Vehicle Museum Trust - Charities report - 20.1.6

REGISTERED COMPANY NUMBER: 02475754 (England and Wales)

REGISTERED CHARITY NUMBER: 328539

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31st December 2019

for

BRITISH COMMERCIAL VEHICLE MUSEUM TRUST

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

16

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31st December 2019. The trustees have adopted the provisions

of 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).

OBJECTIVES AND ACTIVITIES

Principal activities and objectives

The principal activities of the company are the provision of a vehicle museum for the public, the restoration of vehicles

of historic interest and the maintenance of archives of the commercial vehicle industry.

The trust's central objective is to preserve for future generations, vehicles of special significance in the development of

the British commercial vehicle industry. The museum trustees, chosen to provide a range of expertise reflecting both the

operation and manufacture of trucks and buses, determine collection policy. They seek to maintain a representative

display of vehicles spanning the whole heritage of the British commercial vehicle industry.

The trustees' second main objective is to ensure the widest possible access and visibility for the collection.

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.

Corporate status

The British Commercial Vehicle Museum Trust is a registered charity, which was incorporated under the Companies

Act 1985 as a company limited by guarantee on 1 March 1990. The company does not have a share capital and the

liability in respect of guarantee is limited to £1 per trustee. For the purpose of the Companies Act 2006, the trustees act

as directors of the company. The company was established under a Memorandum of Association, which established the

objects and powers of the charitable company and is governed under its Articles of Association

Trustees responsibilities

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view

of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those

financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently

- make judgements and estimates that are reasonable and prudent

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will

continue in business

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time

the financial position of the company and to enable them to ensure that the financial statements comply with Companies

Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps

for the prevention and detection of fraud and other irregularities.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02475754 (England and Wales)

Registered Charity number

328539

Registered office

King Street

Leyland

Lancashire

PR25 2LE

Trustees

J P Gilchrist Chairman

W G Robinson

D H Bennett

D Mitchell

C Roberton

J.A McKevitt

R K Moyes (resigned 19.12.19)

T J Haley

Ms C L Melia

D B Forrest (appointed 18.7.19)

Company Secretary

W G Robinson

Independent Examiner

Andrew Carl Caunce FCCA

ACCA

Abrams Ashton - Chorley

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

Trustees

The Trustees in office at 31st December 2019 are listed below:

J P Gilchrist

D Mitchell

W G Robinson

D H Bennett

C Roberton

J A McKevitt

D B Forrest

T J Haley

C L Melia

Registration and Appointment of Trustees

The Articles of Association of The British Commercial Vehicle Museum Trust require one third of the Trustees to retire

by rotation at each Annual General Meeting. Subject to the provisions of the Articles, the Trustees to retire by rotation

shall be those who have been longest in office since their last appointment or re-appointment, but as between persons

who became or were last re-appointed Trustees on the same day, those to retire shall be determined by lot.

The Trustees retiring are:-

D B Forrest

T J Haley

C L Melia

These Trustees may, if willing to act, be re-appointed.

The Articles of Association require Trustees to retire at their first Annual General Meeting.

Review of activities

The Trustees report an decrease in net funds of £10,152 (2018: £13,449 decrease).

This decrease in net funds is due to a deficit from museum operating activities of £10,152.

Towards the end of the year ended 31 December 2017 the Trustees were delighted when the museum was awarded a

National Lottery grant of £1,836,100 from the Heritage Lottery Fund (HLF). Further funds held by the Museum, and

valuable work contributed in kind by the Museum's Volunteers, have resulted in the project being completed early this

year end, and valued at approaching £2.5M.

This refurbishment, which has substantially increased the attraction of the Museum, and now produced a major visitor

attraction to the area, has enabled it to operate throughout the full year as opposed to the former 6 month basis.

The Trustees are appreciative that the award of the HLF grant has essentially secured the long term future of the

museum at its current site, and also enabled the trustees to release a substantial provision. This provision results from

several years previously when a second building, gifted to the museum, had been sold for a gain of £240,000. A

covenant stipulated that if the museum were to relocate outside of a 10 mile radius from Leyland, that the gain would be

repayable to the organisation that had originally gifted the building. As a result of this covenant the Trustees had

prudently maintained a provision for £240,000, on the basis that this amount would be repayable if the Museum

relocated outside the Leyland area.

The award of the HLF grant confirmed that the museum will reside in Leyland for the foreseeable future and the

Trustees are confident that there are no circumstances under which the gain is repayable.

Museum Activities

Overall income of £254,950 showed an increase from the amount of £107,890 in 2018.

Entrance fees in 2017, which was the last full year comparison, were £32,094 compared with the first part year (11

months) in 2019, after the refurbishment of the museum, of £108,879 representing an increase of 239%. This

emphasises the benefit of the increased visitor attraction resulting from the substantial improvements to the museum as a

result of the award of the HLF grant. Similarly the shop income also showed a substantial increase between these two

years increasing from £9,678 in 2017 to £25,395 in 2019.

The museum is very appreciative of the continued financial support of a number of sponsors and also to individuals who

give to the museum.

The museum continues to assist schools in the education of pupils in the history of road transport through the ages and

the part it has played in peoples' lives. This role has been substantially enhanced following the receipt of the HLF

award and with the appointment of dedicated staff to increase this educational offer. A number of workshops and

activities are being held both during and outside term time to support this role. In addition storytelling sessions are

being held for pre-school children together with the provision of a special area for U/7s children.

A new social history exhibition is being planned in conjunction with a UCLAN student, linked to other community

related projects and the history of the vehicle manufacturing industry in Leyland.

Volunteers and staff

The museum operates with five employees. The Trustees value their contributions and enthusiasm and appreciate that

they also work many extra hours on a voluntary basis.

The financial success of the Trust would not be possible without the huge support and efforts of its volunteers.

Approximately fifty people volunteer their time, skills and expertise to help the museum, archives, cinema and special

events to function. The museum is very grateful to all the volunteers who keep the museum repaired and open, and to

those who entertain and inform the visitors. Without this dedication the museum could not function.

Also during the period of the refurbishment of the Museum the volunteers have played an invaluable part in dealing

with difficult situations and substantially contributing to the success of the project.

The Future

As this report is written the Museum has reopened successfully and is continuing to enjoy very encouraging visitor

numbers and feedback from the public.

The Trustees believe that the substantially improved museum, open the whole year round, will provide a historic visitor

attraction to the general public, educational establishments and enthusiasts, which will be supported by the substantial

archive which the Museum now houses on site. This in turn should also provide increased revenue streams to ensure

the long term viability if the Museum.

It is also hoped to attract substantial sponsorship and increase revenues from commercial activities such as the hiring out

of the museum for corporate events.

Reserves Policy

As outlined above, a substantial part of the restricted funds have been reinvested in the fabric of the building to produce

a 21st century museum. The Trustees look forward to building up the reserves of the museum as a result of increased

revenue streams that will generate future surpluses.

Approved by order of the board of trustees on 7th July 2020 and signed on its behalf by:

J P Gilchrist - Trustee

Independent examiner's report to the trustees of British Commercial Vehicle Museum Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended

31st December 2019.

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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm

that I am qualified to undertake the examination because I am a registered member of ACCA 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:

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.

Andrew Carl Caunce FCCA

ACCA

Abrams Ashton - Chorley

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

21st August 2020

31.12.19

31.12.18

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

24,903

-

24,903

51,701

Other trading activities

2

164,685

65,362

230,047

55,796

Investment income

3

-

-

-

393

Total

189,588

65,362

254,950

107,890

EXPENDITURE ON

Raising funds

13,572

-

13,572

5,696

Charitable activities

Employment costs

43,970

22,776

66,746

27,172

Establishment costs

57,460

8,094

65,554

32,551

General administrative expenses

64,766

34,492

99,258

44,757

Depreciation costs

19,972

-

19,972

11,163

Total

199,740

65,362

265,102

121,339

Net gains on investments

-

-

-

-

NET INCOME/(EXPENDITURE)

(10,152

)

-

(10,152

)

(13,449

)

Other recognised gains/(losses)

Gains on revaluation of fixed assets

1,721,000

-

1,721,000

-

Actuarial gains/(losses) on defined benefit schemes

(71,850

)

71,850

-

-

Net movement in funds

1,638,998

71,850

1,710,848

(13,449

)

RECONCILIATION OF FUNDS

Total funds brought forward

442,568

277,150

719,718

733,167

TOTAL FUNDS CARRIED FORWARD

2,081,566

349,000

2,430,566

719,718

31.12.19

31.12.18

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

2,013,196

-

2,013,196

295,597

Heritage assets

9

-

349,000

349,000

349,000

2,013,196

349,000

2,362,196

644,597

CURRENT ASSETS

Stocks

10

4,165

-

4,165

399

Debtors

11

14,801

-

14,801

10,500

Cash at bank and in hand

65,484

-

65,484

112,677

84,450

-

84,450

123,576

CREDITORS

Amounts falling due within one year

12

(16,080

)

-

(16,080

)

(48,455

)

NET CURRENT ASSETS

68,370

-

68,370

75,121

TOTAL ASSETS LESS CURRENT LIABILITIES

2,081,566

349,000

2,430,566

719,718

NET ASSETS

2,081,566

349,000

2,430,566

719,718

FUNDS

13

Unrestricted funds

2,081,566

442,568

Restricted funds

349,000

277,150

TOTAL FUNDS

2,430,566

719,718

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2019 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 provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 7th July 2020 and were signed on its behalf by:

J P Gilchrist - Trustee

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

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)',

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, as modified by the revaluation of certain assets.

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.

Heritage assets

Due to changes in FRS 30, the charity is now required to capitalise any donated heritage assets. A valuation was

carried out in 2007 (by professional valuers Thimbleby & Shorland) and an estimated value of £349,000 was

placed on these donated assets. There have been no additions/disposals to the collection since this date.

Tangible fixed assets

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

life.

Improvements to property

-

5% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

20% on cost

In a departure from FRS 102 Section 1A for small entities, no depreciation is provided in respect of freehold

properties. This is a departure from the requirements of the Companies Act 2006 which requires all properties to

be depreciated. The trustees consider that to depreciate them would not give a true and fair view. Depreciation is

only one of the many elements reflected in the annual valuation of properties and accordingly the amount of

depreciation which might otherwise have been charged cannot be separately identified or quantified. The

trustees consider that this policy results in the financial statements giving a true and fair view.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis

over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the

charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which

they relate.

Buildings

The museum operates from premises provided by English Partnerships. There is no rent paid for the building

subject to the condition that the buildings are used to further the trusts activities, and cannot be realised unless

the museum re sites in another 'new town' area. Consequently the buildings are not recorded in the balance

sheet.

2.	OTHER TRADING ACTIVITIES

31.12.19

31.12.18

£

£

Entrance fees

108,879

-

Shop income

25,395

-

Archive income

2,544

1,473

Other goods

21,267

355

Cafe income

6,600

-

Heritage lottery fund

65,362

53,968

230,047

55,796

3.	INVESTMENT INCOME

31.12.19

31.12.18

£

£

Bank interest

-

393

4.	NET INCOME/(EXPENDITURE)

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

31.12.19

31.12.18

£

£

Depreciation - owned assets

19,972

11,863

Hire of plant and machinery

4,330

1,745

Surplus on disposal of fixed assets

-

(700

)

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2019 nor for the year

ended 31st December 2018.

Trustees' expenses

During the year, no expenses were paid to trustees (2018 - Nil).

6.	STAFF COSTS

There was an average of 2.5 full time employees throughout the year.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

51,701

-

51,701

Other trading activities

1,828

53,968

55,796

Investment income

393

-

393

Total

53,922

53,968

107,890

EXPENDITURE ON

Raising funds

5,696

-

5,696

Charitable activities

Employment costs

27,172

-

27,172

Establishment costs

32,551

-

32,551

General administrative expenses

44,757

-

44,757

Depreciation costs

2,215

8,948

11,163

Total

112,391

8,948

121,339

NET INCOME/(EXPENDITURE)

(58,469

)

45,020

(13,449

)

Other recognised gains/(losses)

Actuarial gains/(losses) on defined benefit schemes

38,476

(38,476

)

-

Net movement in funds

(19,993

)

6,544

(13,449

)

RECONCILIATION OF FUNDS

Total funds brought forward

462,561

270,606

733,167

TOTAL FUNDS CARRIED FORWARD

442,568

277,150

719,718

8.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

Computer

property

property

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1st January 2019

-

295,453

36,267

5,355

337,075

Additions

-

11,063

1,324

4,184

16,571

Revaluations

1,721,000

-

-

-

1,721,000

At 31st December 2019

1,721,000

306,516

37,591

9,539

2,074,646

DEPRECIATION

At 1st January 2019

-

13,691

25,716

2,071

41,478

Charge for year

-

15,242

3,085

1,645

19,972

At 31st December 2019

-

28,933

28,801

3,716

61,450

NET BOOK VALUE

At 31st December 2019

1,721,000

277,583

8,790

5,823

2,013,196

At 31st December 2018

-

281,762

10,551

3,284

295,597

During the year the Trust made an application to the HM Land Registry to be recognised as the legal owners of

the building. The application was approved and granted by the HM Land Registry and the property has been

brought into the accounts at the value registered at the HM Land Registry of the amount £1,721,000.

9.	HERITAGE ASSETS

Total

£

MARKET VALUE

At 1st January 2019 and 31st December 2019

349,000

NET BOOK VALUE

At 31st December 2019

349,000

At 31st December 2018

349,000

The vehicles and archives in the museum have either been donated or are on loan to the British Commercial

Vehicle Museum. They are considered to be heritage assets. The vehicles are held to provide a commercial

vehicle museum for the benefit of future generations. They range from the horse drawn era through to steam

wagons and early petrol vehicles, up to the present day. There are 62 vehicles on display. No vehicles can be

disposed of without the approval of the donor and a special resolution of the Trust. The archives contain in

excess of 256,000 items of photographic material and artifacts.

10.

STOCKS

31.12.19

31.12.18

£

£

Stocks

4,165

399

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Trade debtors

5,517

1,108

Other debtors

5,840

6,289

Prepayments and accrued income

3,444

3,103

14,801

10,500

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Trade creditors

11,882

38,293

Accruals and deferred income

4,198

8,162

Accrued expenses

-

2,000

16,080

48,455

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.19

in funds

31.12.19

£

£

£

Unrestricted funds

General fund

442,568

1,638,998

2,081,566

Restricted funds

Restricted

277,150

71,850

349,000

TOTAL FUNDS

719,718

1,710,848

2,430,566

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

189,588

(199,740

)

1,649,150

1,638,998

Restricted funds

Restricted

65,362

(65,362

)

71,850

71,850

TOTAL FUNDS

254,950

(265,102

)

1,721,000

1,710,848