British Commercial Vehicle Museum Trust - Charities report - 22.2

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 2021

for

BRITISH COMMERCIAL VEHICLE MUSEUM TRUST

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

15

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 2021. 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 (appointed 22.6.21)

T J Haley

Ms C L Melia

D B Forrest

K J Ellison (appointed 24.2.22)

J G Southworth (appointed 24.2.22)

Company Secretary

W G Robinson

Independent Examiner

Andrew Carl Caunce

ACCA

Abrams Ashton - Chorley Limited

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

Trustees

The Trustees in office at 31st December 2021 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

R K Moyes (appointed 22.6.21)

K J Ellison (appointed 24.2.22)

J G Southworth (appointed 24.2.22)

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 recent financial performance of the Museum has been heavily influenced by the impact of Covid-19 for both of the financial year ends 31 December 2020 and 31 December 2021.

For the year ended 31 December 2020 we previously reported a surplus for the year of £118,599. However, this surplus was significantly assisted by government grants received of £240,154 - which included substantial grants to survive the various lock down periods.

We needed the surplus generated in 2020 to weather the further lock downs occurring in 2021. In the year ended 31 December 2021 the museum recorded an overall deficit of £112,545. However, taking the two years together the museum had an overall surplus of £6,054.

The reserves of the museum as at 31 December 2021 stood at £2,436,621 - which is in line with pre-covid level of reserves.

The challenge now is to operate and continue to develop the museum and its activities whilst remaining financially stable.

Museum Activities

Normal trading income for 2021 increased to £113,344 (2020 - £74,588).

Donations and sponsorship was £2,392 (2020 - £9,891).

Government grants and furlough support for 2021 was £65,120 (2020 - £267,434).

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.

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

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 24th August 2022 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 2021.

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.

Andrew Carl Caunce

ACCA

Abrams Ashton - Chorley Limited

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

5th September 2022

31.12.21

31.12.20

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

67,512

-

67,512

277,325

Other trading activities

2

113,344

-

113,344

74,588

Other income

11,531

-

11,531

-

Total

192,387

-

192,387

351,913

EXPENDITURE ON

Raising funds

21,776

-

21,776

5,036

Charitable activities

Employment costs

110,213

-

110,213

65,850

Establishment costs

29,250

-

29,250

-

General administrative expenses

122,803

-

122,803

125,885

Depreciation costs

20,890

-

20,890

36,543

Total

304,932

-

304,932

233,314

NET INCOME/(EXPENDITURE)

(112,545

)

-

(112,545

)

118,599

RECONCILIATION OF FUNDS

Total funds brought forward

2,200,166

349,000

2,549,166

2,430,567

TOTAL FUNDS CARRIED FORWARD

2,087,621

349,000

2,436,621

2,549,166

31.12.21

31.12.20

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

2,009,258

-

2,009,258

2,002,281

Heritage assets

8

-

349,000

349,000

349,000

2,009,258

349,000

2,358,258

2,351,281

CURRENT ASSETS

Stocks

9

3,694

-

3,694

7,632

Debtors

10

14,958

-

14,958

27,252

Cash at bank and in hand

93,061

-

93,061

247,639

111,713

-

111,713

282,523

CREDITORS

Amounts falling due within one year

11

(33,350

)

-

(33,350

)

(34,638

)

NET CURRENT ASSETS

78,363

-

78,363

247,885

TOTAL ASSETS LESS CURRENT LIABILITIES

2,087,621

349,000

2,436,621

2,599,166

CREDITORS

Amounts falling due after more than one year

12

-

-

-

(50,000

)

NET ASSETS

2,087,621

349,000

2,436,621

2,549,166

FUNDS

14

Unrestricted funds

2,087,621

2,200,166

Restricted funds

349,000

349,000

TOTAL FUNDS

2,436,621

2,549,166

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2021 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 24th August 2022 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.

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

31.12.21

31.12.20

£

£

Entrance fees

66,485

37,625

Shop income

14,234

8,920

Archive income

1,581

1,761

Other goods

8,895

9,307

Cafe income

22,149

1,800

Heritage lottery fund

-

15,175

113,344

74,588

3.	NET INCOME/(EXPENDITURE)

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

31.12.21

31.12.20

£

£

Depreciation - owned assets

20,890

19,196

Hire of plant and machinery

4,363

3,487

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.

Trustees' expenses

During the year, no expenses were paid to trustees (2020 - Nil).

5.	STAFF COSTS

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

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

277,325

-

277,325

Other trading activities

74,588

-

74,588

Total

351,913

-

351,913

EXPENDITURE ON

Raising funds

5,036

-

5,036

Charitable activities

Employment costs

65,850

-

65,850

General administrative expenses

125,885

-

125,885

Depreciation costs

36,543

-

36,543

Total

233,314

-

233,314

NET INCOME

118,599

-

118,599

RECONCILIATION OF FUNDS

Total funds brought forward

2,081,567

349,000

2,430,567

TOTAL FUNDS CARRIED FORWARD

2,200,166

349,000

2,549,166

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

Computer

property

property

fittings

equipment

Totals

£

£

£

£

£

COST

At 1st January 2021

1,721,000

314,115

37,591

10,221

2,082,927

Additions

-

-

-

27,867

27,867

At 31st December 2021

1,721,000

314,115

37,591

38,088

2,110,794

DEPRECIATION

At 1st January 2021

-

44,607

30,723

5,316

80,646

Charge for year

-

15,706

1,922

3,262

20,890

At 31st December 2021

-

60,313

32,645

8,578

101,536

NET BOOK VALUE

At 31st December 2021

1,721,000

253,802

4,946

29,510

2,009,258

At 31st December 2020

1,721,000

269,508

6,868

4,905

2,002,281

In 2019 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 had been brought into the accounts at the value registered at the HM Land Registry of the amount £1,721,000.

8.	HERITAGE ASSETS

Total

£

MARKET VALUE

At 1st January 2021 and 31st December 2021

349,000

NET BOOK VALUE

At 31st December 2021

349,000

At 31st December 2020

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.

9.

STOCKS

31.12.21

31.12.20

£

£

Stocks

3,694

7,632

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

12,249

16,069

Other debtors

-

10,195

Prepayments and accrued income

2,709

988

14,958

27,252

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade creditors

24,688

31,920

Social security and other taxes

5,370

618

Accruals and deferred income

3,292

2,100

33,350

34,638

12.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans (see note 13)

-

50,000

13.

LOANS

An analysis of the maturity of loans is given below:

31.12.21

31.12.20

£

£

Amounts falling due between two and five years:

Bank loans - 2-5 years

-

50,000

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.21

in funds

31.12.21

£

£

£

Unrestricted funds

General fund

2,200,166

(112,545

)

2,087,621

Restricted funds

Restricted

349,000

-

349,000

TOTAL FUNDS

2,549,166

(112,545

)

2,436,621

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

192,387

(304,932

)

(112,545

)

TOTAL FUNDS

192,387

(304,932

)

(112,545

)

Comparatives for movement in funds

Net

movement

At

At 1.1.20

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

2,081,567

118,599

2,200,166

Restricted funds

Restricted

349,000

-

349,000

TOTAL FUNDS

2,430,567

118,599

2,549,166

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

351,913

(233,314

)

118,599

TOTAL FUNDS

351,913

(233,314

)

118,599

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

Net

movement

At

At 1.1.20

in funds

31.12.21

£

£

£

Unrestricted funds

General fund

2,081,567

6,054

2,087,621

Restricted funds

Restricted

349,000

-

349,000

TOTAL FUNDS

2,430,567

6,054

2,436,621