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 2022

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 2022. 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 (deceased 1.8.22)

T J Haley

Ms C L Melia

D B Forrest

K J Ellison Director (appointed 24.2.22)

J G Southworth Director (appointed 24.2.22)

P Juke (appointed 31.5.22)

Company Secretary

W G Robinson

Independent Examiner

Andrew Carl Caunce

Abrams Ashton - Chorley Limited

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

Trustees

The Trustees in office at 31st December 2022 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

K J Ellison (appointed 24.2.22)

J G Southworth (appointed 24.2.22)

P Juke (appointed 31.05.22)

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:-

- David Bennet

- David Mitchell

- Clive Robertson

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 are pleased to report a near breakeven financial position for the year ended 31 December 2022 with a deficit of £1,531. This compares to a large deficit in the year ended 31 December 2021 of £112,545 resulting from the impact of Covid-19.

After the losses incurred in 2021 - the year ended 31 December 2022 has still been a difficult year to navigate.

The museum had to make severe expenditure cuts as we emerged from the impact of Covid-19 and we were also impacted by the sudden and unexpected death of general manger Keith Moyes on 1st August 2022.

Keith was the general manager for many years and played an integral part in the successful bid with Heritage Lottery Fund to refurbish the museum and enable us to be open for the whole year round. We are indebted to all the work Keith carried out for the museum and he will be greatly missed.

Following Keith's death, we are particularly grateful to trustees David Mitchell and Rick Roberton who spent a lot of time covering the duties of the general manager and helping the museum maintain an 'even keel' and move forward.

Income for the year was £228,035 - a 19% improvement on 2021.

Overheads reduced by 25% to £229,566 (2021 £304,932).

The net assets of the museum at 31 December 2022 were £2,435,090.

Museum Activities

Normal trading income for 2022 increased to £130,269 (2021 - £113,344). Full details are enclosed in note 2 to these accounts.

Donations and sponsorship were £78,086 (2021 - £2,392). The large increase in the year was due to a very generous legacy left to the museum by the late Phil Rogers - a former volunteer.

Government grants and furlough support for 2022 was £19,680 (2021 - £65,120).

Volunteers and staff

The museum currently 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

The challenge in 2023 is to increase visitor numbers to pre covid-19 levels and increase commercial income from sponsorship and the use of conferencing facilities.

The trustees have committed to undertake a thorough review of the adoption of the eight essential elements of a successful board as contained in The Charity Governance Code, produced by NCVO. The trustees have engaged a consultant to undertake a review and provide recommendations to ensure we comply with the eight elements including:

- Organisational purpose

- Leadership

- Integrity

- Decision-making

- Risk and control

- Board effectiveness

- Equality, diversity and inclusion

- Openness and accountability

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 21st September 2023 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 2022.

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

Abrams Ashton - Chorley Limited

Chartered Certified Accountants

41 St Thomas's Road

Chorley

Lancashire

PR7 1JE

26th September 2023

31.12.22

31.12.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

97,766

-

97,766

67,512

Other trading activities

2

130,269

-

130,269

113,344

Other income

-

-

-

11,531

Total

228,035

-

228,035

192,387

EXPENDITURE ON

Raising funds

9,099

-

9,099

21,776

Charitable activities

Employment costs

80,104

-

80,104

110,213

Establishment costs

29,769

-

29,769

29,250

General administrative expenses

86,311

-

86,311

122,803

Depreciation costs

24,283

-

24,283

20,890

Total

229,566

-

229,566

304,932

NET INCOME/(EXPENDITURE)

(1,531

)

-

(1,531

)

(112,545

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,087,621

349,000

2,436,621

2,549,166

TOTAL FUNDS CARRIED FORWARD

2,086,090

349,000

2,435,090

2,436,621

31.12.22

31.12.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

1,991,268

-

1,991,268

2,009,258

Heritage assets

8

-

349,000

349,000

349,000

1,991,268

349,000

2,340,268

2,358,258

CURRENT ASSETS

Stocks

9

3,000

-

3,000

3,694

Debtors

10

3,080

-

3,080

14,958

Cash at bank and in hand

103,977

-

103,977

93,061

110,057

-

110,057

111,713

CREDITORS

Amounts falling due within one year

11

(15,235

)

-

(15,235

)

(33,350

)

NET CURRENT ASSETS

94,822

-

94,822

78,363

TOTAL ASSETS LESS CURRENT LIABILITIES

2,086,090

349,000

2,435,090

2,436,621

NET ASSETS

2,086,090

349,000

2,435,090

2,436,621

FUNDS

12

Unrestricted funds

2,086,090

2,087,621

Restricted funds

349,000

349,000

TOTAL FUNDS

2,435,090

2,436,621

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2022 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 21st September 2023 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

31.12.22

31.12.21

£

£

Entrance fees

91,636

66,485

Shop income

17,254

14,234

Archive income

2,394

1,581

Other goods

12,533

8,895

Cafe income

6,452

22,149

130,269

113,344

3.	NET INCOME/(EXPENDITURE)

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

31.12.22

31.12.21

£

£

Depreciation - owned assets

24,283

20,890

Hire of plant and machinery

5,586

4,363

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2022 nor for the year ended 31st December 2021.

Trustees' expenses

During the year, no expenses were paid to trustees (2021 - Nil).

5.	STAFF COSTS

There was an average of 7 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

67,512

-

67,512

Other trading activities

113,344

-

113,344

Other income

11,531

-

11,531

Total

192,387

-

192,387

EXPENDITURE ON

Raising funds

21,776

-

21,776

Charitable activities

Employment costs

110,213

-

110,213

Establishment costs

29,250

-

29,250

General administrative expenses

122,803

-

122,803

Depreciation costs

20,890

-

20,890

Total

304,932

-

304,932

NET INCOME/(EXPENDITURE)

(112,545

)

-

(112,545

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,200,166

349,000

2,549,166

TOTAL FUNDS CARRIED FORWARD

2,087,621

349,000

2,436,621

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

Computer

property

property

fittings

equipment

Totals

£

£

£

£

£

COST

At 1st January 2022

1,721,000

314,115

37,591

38,088

2,110,794

Additions

-

-

3,830

2,463

6,293

At 31st December 2022

1,721,000

314,115

41,421

40,551

2,117,087

DEPRECIATION

At 1st January 2022

-

60,313

32,645

8,578

101,536

Charge for year

-

15,706

1,193

7,384

24,283

At 31st December 2022

-

76,019

33,838

15,962

125,819

NET BOOK VALUE

At 31st December 2022

1,721,000

238,096

7,583

24,589

1,991,268

At 31st December 2021

1,721,000

253,802

4,946

29,510

2,009,258

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 2022 and 31st December 2022

349,000

NET BOOK VALUE

At 31st December 2022

349,000

At 31st December 2021

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

31.12.22

31.12.21

£

£

Stocks

3,000

3,694

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

1,524

12,249

Prepayments and accrued income

1,556

2,709

3,080

14,958

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade creditors

2,521

24,688

Social security and other taxes

9,797

5,370

Accruals and deferred income

2,917

3,292

15,235

33,350

12.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.22

in funds

31.12.22

£

£

£

Unrestricted funds

General fund

2,087,621

(1,531

)

2,086,090

Restricted funds

Restricted

349,000

-

349,000

TOTAL FUNDS

2,436,621

(1,531

)

2,435,090

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

228,035

(229,566

)

(1,531

)

TOTAL FUNDS

228,035

(229,566

)

(1,531

)

Comparatives for 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

Comparative 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

)

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

Net

movement

At

At 1.1.21

in funds

31.12.22

£

£

£

Unrestricted funds

General fund

2,200,166

(114,076

)

2,086,090

Restricted funds

Restricted

349,000

-

349,000

TOTAL FUNDS

2,549,166

(114,076

)

2,435,090

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

420,422

(534,498

)

(114,076

)

TOTAL FUNDS

420,422

(534,498

)

(114,076

)