THE SCOTTISH RAILWAY
PRESERVATION SOCIETY
(A company limited by guarantee)
Report and Financial Statements
Year ended 31 December 2014
Charity No : SC002375
Company No : SC055533
CONTENTS
SRPS Report Dec 2014
TRUSTEES’ REPORT ........................................................................................................................... 1
Legal and Administrative Information ................................................................................................ 1 Status. .................................................................................................................................................. 1 Directors (Members of the Council of Management) holding office on 1 January 2014 or
subsequently appointed .............................................................................................................. 1 Registered Company Number ............................................................................................................. 2 Registered Office ................................................................................................................................ 2 Operational Address ............................................................................................................................ 2 Senior Statutory Auditor ..................................................................................................................... 2 Auditors .............................................................................................................................................. 2 Bankers ............................................................................................................................................... 2 Solicitors ............................................................................................................................................. 2 Responsibilities of the Directors ......................................................................................................... 3 Structure, Governance and Management ............................................................................................ 3 Statement as to Disclosure of Information to Auditors ....................................................................... 4 Members of the Board of Directors .................................................................................................... 4 Members of the Society ...................................................................................................................... 4 Objectives and Activities .................................................................................................................... 4 Achievements and Performance.......................................................................................................... 5
Governance ................................................................................................................................ 5 Volunteers .................................................................................................................................. 5 Fundraising ................................................................................................................................. 5 Charitable Activities................................................................................................................... 6 Further Information .................................................................................................................... 7
Financial Review ................................................................................................................................ 7 Capital Investments ............................................................................................................................. 7 Appreciation ........................................................................................................................................ 7 Risk Management ............................................................................................................................... 7 Reserves Policy ................................................................................................................................... 8 Plans for Future Periods ...................................................................................................................... 8 Auditors .............................................................................................................................................. 9
AUDITOR’S REPORT ......................................................................................................................... 10
Respective responsibilities of directors and auditors ........................................................................ 10 Scope of the audit of the financial statements ................................................................................... 10 Opinion on financial statements ........................................................................................................ 10 Opinion on other matter prescribed by the Companies Act 2006 ..................................................... 11 Matters on which we are required to report by exception ................................................................. 11
STATEMENT OF FINANCIAL ACTIVITIES ................................................................................... 12
INCOME AND EXPENDITURE ACCOUNT ............................................................................................ 13
BALANCE SHEET .............................................................................................................................. 14
NOTES FORMING PART OF THE FINANCIAL STATEMENTS ................................................... 15
1. Accounting policies ................................................................................................................... 15 2. Voluntary Income ...................................................................................................................... 16 3. Activities for Generating Funds................................................................................................. 16 4. Incoming Resources from Activities to Further the Charity’s Objects...................................... 16 5. Resources Expended .................................................................................................................. 17 6. Net Incoming Resources for the Year ....................................................................................... 19 7. Staff Costs and Numbers ........................................................................................................... 19 8. Taxation ..................................................................................................................................... 19 9. Tangible Fixed Assets ............................................................................................................... 20 10. Investments .............................................................................................................................. 21
CONTENTS (Continued)
SRPS Report Dec 2014
11. Debtors ..................................................................................................................................... 21 12. Creditors: Amounts Falling Due Within One Year .................................................................. 21 13. Creditors: Amounts Falling Due After One Year .................................................................... 22 14. Commitments and Contingent Liability ................................................................................... 22 15. Analysis of Net Assets Between Funds ................................................................................... 22 16. Movement in Funds.................................................................................................................. 23
Fund Transfers ......................................................................................................................... 23 Special Project Fund ................................................................................................................ 23 Life Membership ...................................................................................................................... 24 Unrestricted Designated Funds ................................................................................................ 24
17. Company Limited by Guarantee .............................................................................................. 25 18. Related Party Transactions ....................................................................................................... 25
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
REPORT OF THE DIRECTORS
for the year ended 31 December 2014.
SRPS Report Dec 2014 1 150429
TRUSTEES’ REPORT
The Council of Management, being the Directors and Trustees of the Society for the purposes of
company and charity law, presents its report and the audited financial statements for the year ended
31 December 2014.
Legal and Administrative Information
Status.
The Society is incorporated as a company limited by guarantee, and was granted recognition by the
Inland Revenue as a charity on 22 May 1974. The Society is recognised as a charity by the Office of
the Scottish Charity Regulator (OSCR), charity number SC002375.
The objects and powers of the Society are set out in its Memorandum of Association, in terms of
which its principal purpose is the establishment of a museum of railways in Scotland. The rules and
procedures of the Society are contained in its Articles of Association, in terms of which the
management of its affairs is vested in a Council of Management, being the Board of Directors of the
Society for the purposes of company law and trustees for the purpose of charity law. The individual
members of the Council of Management are elected at the annual general meeting to serve for an
initial period of two years.
Directors (Members of the Council of Management) holding office on 1 January 2014 or
subsequently appointed
John Evans Chairman
James Verth Vice-Chairman
David J. Morrison Finance
Alexander Turner Falkirk Council (resigned 11 February 2015)
David Roderick General Secretary appointed 28 July 2014
Mark Ashmole appointed 31 March 2014
Rowan J. Brown resigned 2 July 2014
Norman J. H. Girvan
Ian R. Gordon
Stefan G. Kay
Amanda Kilburn
Matthew Lambert
Robert Marshall resigned 1 January 2015
Douglas McEwan
Andrew McLean
Victor E. Michel
James Robertson
Brian M. Thomson resigned 2 July 2014
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REPORT OF THE DIRECTORS
for the year ended 31 December 2014.
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Registered Company Number
SC055533
Registered Office
17-19 North Street
Bo’ness,
West Lothian
EH51 0AQ
Operational Address
Bo’ness Station,
Union Street,
Bo’ness.
West Lothian
EH51 9AQ
Senior Statutory Auditor
Kevin Cattanach
Auditors
Whitelaw Wells
Statutory Auditor
9 Ainslie Place
Edinburgh
EH3 6AT.
Bankers
The Royal Bank of Scotland plc
23 Sauchiehall Street
Glasgow
G2 3AD.
Solicitors
Pagan Osborne W.S.
55-56 Queen Street
Edinburgh
EH2 3PA
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
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Responsibilities of the Directors
Company law requires the Directors to prepare financial statements for each financial year which give
a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and
of its incoming resources and application of resources, including income and expenditure, for the
financial year. In preparing those financial statements, the Directors should follow best practice and
select suitable accounting policies and then apply them consistently;
observe the methods and policies of the Charities Statement of Recommended Practice
(SORP);
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed; and
prepare the financial statements on the going concern basis unless it is inappropriate to assume
that the company will continue on that basis.
The Directors are responsible for maintaining proper accounting records which disclose with
reasonable accuracy at any time the financial position of the charitable company and enable them to
ensure that the financial statements comply with the Companies Act 2006. The Directors are also
responsible for safeguarding the assets of the charitable company and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
Structure, Governance and Management
The principal documents governing the Society’s conduct of business are the Memorandum of
Association and Articles of Association. These are supplemented by an Organisation Chart and remits
for the Council and Committees of the Society which are subject to regular review.
Trustees, who are Members or Officers of the Council of Management, are with two exceptions
elected by the Society’s Annual General Meeting and serve for 2-year terms of office, being eligible
for re-election. The names of the Trustees who served during the year are noted on page 1. Falkirk
Council is entitled to appoint one Trustee. In a letter dated 11 February 2015, Falkirk Council
informed the Society that it no longer wishes to make this appointment. The Business Development
Manager (who is a paid employee) is also a Trustee. All other trustees are elected. The board of
trustees aims to meet approximately every two months.
The four office bearers, Chairman, Vice Chairman, Hon. Treasurer and General Secretary meet on an
ad hoc basis to review the overall strategy and direction of the Society. In addition a number of sub-
committees address specific areas of activity. These are:-
The Executive Committee which makes day to day decisions affecting the running of the
Society, within a wider framework set by the trustees
The Railway Management Group that makes day to day decisions affecting the Bo’ness site in
relation to railway operations.
The Finance and Audit Committee that supervises the financial management system, and
maintains the risk register for review by the Council of Management.
The Museums and Acquisitions Committee that supervises the management of the collections
in the Society’s care and advises on the operation of the Museum.
New trustees are assisted to understand the duties of membership of the Council by periodic training
sessions and one to one mentoring.
All activities are reviewed through reports to the Council of Management, and policy is considered
and amended accordingly. Certain major decisions are reserved for the Council of Management or, in
a few cases, the Annual General Meeting.
The Society works closely with the following organisations:
The Scottish Railway Museum Collections Trust, a separately constituted charitable trust
(Scottish charity SC020611) which holds title to the Museum Collection, the day to day
management of which is undertaken by the Society in terms of the Management Agreement
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entered into between the two bodies. For the purposes of the Charities Accounts (Scotland)
Regulations 2006 (as amended), the SRMCT may be regarded as a subsidiary undertaking by
virtue of the fact that the Society has the right to nominate a majority of the trustees, but in
terms of the trust deed the Society has no power to give directions to otherwise control the
actions of the trustees, who act independently of the Society.
The Scottish Railway Museum Trust, a separately constituted charitable trust (Scottish charity
SC032072), a subsidiary of the Society by virtue of the Society’s control of the trustees. The
SRMT is currently inactive, but is intended to operate as a fund-raising mechanism for
Museum activities and acquisitions.
SRPS Railtours Ltd, a subsidiary of the Society, which operates day excursions and charter
trains on the National Network, to demonstrate rail travel of earlier times, and which raises
revenue for the Society. SRPS Railtours Ltd. is also responsible for retail operations.
The Bo’ness & Kinneil Railway Company Ltd. which holds title to part of the land over which
the Society operates its railway.
Statement as to Disclosure of Information to Auditors
So far as the Directors are aware, there is no relevant audit information (as defined by Section 418 of
the Companies Act 2006) of which the charitable company’s auditors are unaware, and each director
has taken all the steps he ought to have taken as a director in order to make himself aware of any
relevant audit information and to establish that the charitable company’s auditors are aware of that
information.
Members of the Board of Directors
Members of the Board of Directors who served during the year and up to the date of this report are set
out on page 1.
Members of the Society
Membership of the Society is open to individuals and families. Grades of membership open to new
members are Ordinary, Retired, Family, Junior and Associate. Life, Family Life, Premier Life and
Premier Family Life grades are closed to new members.
The number of voting members in 2014 was 1,390 (2013: 1,455). Current rates and benefits of
membership are given in a membership leaflet. All members are invited to be active in the running of
the Society, and the volunteers fulfil most of the functions in the Society’s operations. These include
management, administration, professional, curatorial, technical and craft skills, research, visitor
services and all general activities for both the Society and its trading subsidiary SRPS Railtours
Limited. Specialist training is provided where the volunteer does not bring the necessary skills from
his employment, and in safety critical applications such as train crew, regular medical examinations
and biennial rules exams are required. Records show over 380 members, or 27% of the voting
membership, are registered volunteers.
Objectives and Activities
The Society’s principal purpose is railway preservation and the advancement of railway heritage. This
purpose translates into several key activities. Apart from the necessary governance and fundraising
activities, the charitable objectives are met by the conservation, restoration, repair, maintenance,
display, interpretation and where appropriate operation of railway artefacts (the “Collections”)
including small objects, archives, equipment, carriages, wagons and locomotives, and in addition the
provision and upkeep of buildings which protect and give context to the Collection. As with all
heritage trusts, the Society is also engaged in education and outreach activities including research,
interpretation and public lectures.
These objectives are achieved through the operation of ;
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The Bo’ness & Kinneil Railway, a five mile long heritage railway with stations and halts at
Bo’ness, Kinneil, Birkhill and Manuel.
The Museum of Scottish Railways, an accredited museum with a collection recognised by
Museums Galleries Scotland to be of national significance and
SRPS Railtours which runs mainline rail excursions throughout the UK.
Achievements and Performance
Governance
The Society is committed to the highest standards of corporate governance in the conduct of its affairs.
The Council of Management met 7 times during the year and continued to comply with all statutory
and regulatory obligations. An Executive Committee with day-to-day management responsibilities
met 13 times in 2014, reporting to the Council, allowing Council more time to consider wider strategic
issues.
In November 2014 a seminar was held at the National Mining Museum Scotland, to review key
activities and future developments.
Volunteers
Volunteers are the mainstay of the Society, and the Directors estimate that over all departments, 380
volunteers contribute in excess of 60,000 man-hours or 38 full time equivalent (FTE) staff. Although
unpaid, the volunteers are required to work to the same professional standards as remunerated staff. In
particular in safety critical positions, the assessment of competence and requirements for medical
fitness are the same as for remunerated staff. It is interesting to note that over the past few years
several of our volunteers, having gained experience with the Society, have subsequently found
employment with Network Rail or the mainline train operating companies.
In addition the Youth Group is now well established and provides opportunities for 12-16 year olds.
Once aged 14 they can work under the supervision of the museum and workshop managers.
Fundraising
Voluntary Income
In 2014 voluntary income was £177,760 (2013: £280,952). However 2013 was dominated by two
large legacies, one of £110,000 and another of £91,851. In 2014 legacies were £73,936 (2013:
£205,851). As with previous legacies, Council has agreed that these legacies should be placed in a
designated fund for future development projects. Donations continued to be healthy, up 51% from
£39,402 to £59,381, almost half of which was received for the purchase of a North British built 8F
Steam locomotive.
The Bo’ness & Kinneil Railway
The railway operated train services at weekends from April to October with midweek running in the
Easter and October school holidays, July and August. November and December saw the popular
Santa Steam Trains. The introduction of internet booking for the Santa Steam Trains saw the available
spaces sold out in record time. On the last weekend of the year, a two-day Diesel Gala was held using
the extensive collection of heritage diesel locomotives. A Mixed Traffic Gala was held at the end of
May, allowing the public travel in the LNER and Caledonian Railway carriages. A two-day Steam
Gala was also held in mid-October. The overall number of visitors to the Bo’ness & Kinneil Railway
and the associated Museum of Scottish Railways was stable at 68,329 (2013: 68,306).
The Bo’ness & Kinneil Railway was awarded a 2014 TripAdvisor Certificate of Excellence. This
award honours hospitality excellence and is given only to establishments that consistently achieve
outstanding traveller reviews on TripAdvisor. Businesses must maintain an overall TripAdvisor
bubble rating of at least four out of five, volume and recency of reviews. In September the Station
Buffet received a Taste Our Best award 2014/2015. Awarded by VisitScotland, the award recognises
businesses that are committed to serving quality Scottish produce prepared with care and delivered
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
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with passion. In November the Railway was delighted to be winners of the Scottish Thistle Award
2014/2015 for the Central South East Region in the category of Best Visitor Attraction. This award is
judged on the customer experience, looking for ways in which people in Scottish business have used
Scotland’s nature, heritage and ingenuity to “go the extra mile” for visitors in creating something
particularly positive in terms of customer service excellence. The Society was also the winner of the
Best Tourism Business at the Falkirk Herald Business Awards because it was recognised to be taking
every opportunity to develop the attraction with some ambitious plans for the future.
SRPS Railtours
Following an exceptional year in 2013, where record profits were generated by leasing the coaches to
other Railtour operators for much of the year, SRPS Railtours returned to the more customary pattern
of running a season of steam and diesel hauled excursions over the national rail network,
supplemented by some leasing of the Railtour set to third parties. The trains consisted of heritage
rolling stock which, leased from the Society, is hired on a basis of a repairing lease.
In addition to mainline operations, retail sales rose 5% to £74,437 (2013: £71,112). The company
reported a profit £70,376 (2013: £221,105). As usual the directors of the railtour company decided to
Gift Aid the entire profits to the SRPS.
Charitable Activities
Museum of Scottish Railways
There were 17,073 visitors to the Museum of Scottish Railways in 2014, a rise of 4% after adjusting
for an exceptional event in 2013 when Birkhill Station was not available. The museum received two
new major items of rolling stock. The Strathspey Railway Company donated the only surviving
example of an LNER sleeping car in existence in the UK. Built in Doncaster in 1935 and numbered
1211 it was withdrawn from service in 1972. Strathclyde Passenger Transport donated a Glasgow
subway car. Considerable preparations are required for the receipt of this vehicle since it has a four
foot gauge. Since 2013, over 5,000 photographs have now been added to the photographic collection.
An Education Officer supported by the Robertson Trust was employed to produce a new Schools
Education Pack and to work with both schools and community groups through educational visits and
outreach activities.
Restorations
The Carriage and Wagon Department has been progressing work on four carriages, LNER TK12002,
NB Invalid Saloon No 461 and the two LMS coaches No 27389 and 27407. The Youth Group have
been preparing the interior of the Snowplough.
The Steam Department, in addition to the maintenance of the operational fleet of LNER No 246
Morayshire and Austerity No. 7, brought Austerity No. 19 into service during the year. With No. 19
now in traffic, progress on Caledonian Tank Locomotive No. 419 can now restart. Coltness No.1 is
now out of traffic for a major overhaul. This locomotive acts as Thomas at the “Days Out with
Thomas” TM
event and will receive priority, since during its period of absence an equivalent
locomotive must be hired in from another heritage railway.
Progress is continuing on the restoration of Class 37 No. 37403 with the fitting of OTMR and TPWS
systems required for running on the national network. Work is also underway on Class 25 No. 25235.
DMU Buffet Car No. 79443 is also under restoration both internally and externally.
Partnerships
Despite the pressures on local authority funding, Falkirk Council continued to support the Society with
funding of £48,451(2013: £48,451). Under the Agreement, the SRPS supports the Council in
achieving its aims of improving health and well-being, enhancing opportunity, developing tourism,
supporting the local economy and assisting with the regeneration of Bo’ness. The SRPS is also
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obliged to report its annual visitor numbers on the basis of visits in person, by e-mail and to the SRPS
websites.
The Society is also a member of Industrial Museums Scotland (IMS), The Transport Trust, the
Heritage Railway Association and the LNER Coach Association.
Further Information
At any one time numerous projects are underway; much of this activity can be viewed through the
Society’s websites. The SRPS main website is at srps.org.uk. The Bo’ness and Kinneil Railway
website is at bkrailway.co.uk and the museum website is at srpsmuseum.org.uk. The engineering
websites at srpssteam.com and srpsdiesel.co.uk are rich in detail and photographs of the work in
progress.
Financial Review
The key performance indicators are shown in the Statement of Financial Activities (SOFA), the
Income and Expenditure Account and the Balance Sheet on pages 12 to 14. The surplus for the year
was £33,949 (2013: £364,029). The General Fund supports a number of projects across all
departments. These can range from just a few hundred pounds for smaller projects to several thousand
for larger projects where top-up funding is deemed to be a priority by Council. It also provides
partnership-funding for externally grant-aided projects. Last year 23 of the larger projects received
such funding. The top ten shared over £115,000. These were major overhauls of Locomotives
Coltness No. 1 (“Thomas”), CR 419, Austerities Nos. 7 and 19, Diesel Locomotive 37403, restoration
of LNER coach 1002, Gresley buffet car No. 644, LMS coaches 27389 and 27407, batteries for D8020
Diesel Shunter, new running-shed doors (with partnership funding) and new lighting for Bo’ness
Station and platform. It should also be noted that the first three months of each new financial year will
most likely incur a seasonal deficit when the Bo’ness & Kinneil Railway is closed and SRPS Railtours
are not operating day excursions. The Directors have taken this into account when reviewing the
reserves policy.
Total funds rose to £2,736,511 (Dec 2013: £2,702,562). Unrestricted funds, including fixed assets
rose to £2,620,297 (2013: £2,611,395) and restricted funds to £116,214 (2013: £91,167).
Capital Investments
During 2014 capital investment was £57,279. A new fuel storage tank for diesel fuel was installed,
and CCTV across the site brought into operation. This latter project was generously grant-aided by
Museums Galleries Scotland. A forklift truck was also purchased for the Diesel Group.
Appreciation
The Council of Management is grateful to the volunteers who gave their time and effort in support of
the Society. It is not possible to put a financial valuation on all the volunteers’ work, and so it has not
been included in the financial statements. Suffice to say that without their efforts the Society would
not be able to function and further its charitable purpose.
The Council of Management wishes to gratefully acknowledge the support of Falkirk Council and
their representative, Councillor Alexander Turner. The Society also wishes to thank the Scottish
Government, Museums Galleries Scotland, the Robertson Trust, National Museums Scotland, the
Heritage Lottery Fund, the National Railway Museum and many other private and public organisations
that have provided invaluable support throughout the period.
Risk Management
During the year the Directors conducted an assessment of the risks to which the charitable company is
exposed, in particular those related to the operations and finances of the charitable company.
The Directors are satisfied that the systems in place mitigate exposure to the major risks. Operational
risks are minimised by the application of working methods, training, competency assessment of
volunteers and equipment inspections based on those applied in similar workplaces with remunerated
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
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employees. Technical advice is obtained from the Society’s Safety Advisor (who is a professional
railwayman), Insurers, the Safety Committee of the Railway Heritage Association and from the
knowledge and skills of members acquired in their professional life. All safety critical posts are
subjected to regular medical examination for fitness for duty.
Reserves Policy
The unrestricted reserves of the charity amount to £2,620,297 as shown on the Balance Sheet and at
note 16. These reserves represent unrestricted funds arising from past operating results. It is the policy
of the charity to designate £5,000 of unrestricted funds per annum to meet potential future costs of
renewing the mainline connection. In addition, the directors have decided to maintain a designated
Fixed Asset Fund, which represents the net book value of fixed assets held by the charity and is not
freely available to use as working capital. Finally, it is the charity’s policy to build up the remaining
unrestricted General Fund, excluding investments and long-term loans, to cover a minimum reserve of
4 months' normal expenditure plus appropriate working capital with a longer-term objective of 6
months' and an upper limit of 8 months. This policy was derived taking into account the seasonal
nature of incoming resources such that in the first three months of each new financial year will most
likely incur a significant deficit. The policy was met in 2014.
Plans for Future Periods
The SRPS remains committed to its goals of:-
accreditation to national museum standards;
remaining a key player in the advancement of Scottish heritage; and
developing and promoting the operation of the Heritage Railway to secure its recognition and
as a visitor attraction of National Importance
Activities to achieve these ends include
the continued development of the historic collection (through acquisitions and disposals);
developments in quality collection care, conservation and presentation;
increasing knowledge and documentation of the collection with improved interpretation;
the creation of further effective public access to the collection;
improving the facilities to allow the establishment of a centre for heritage railway engineering.
enhancing the total visitor experience with improved facilities involving wider communities:
and
engaging and developing our membership.
These developments will be achieved where possible by volunteer staff, or by professional staff when
justified. The SRPS will work with partners such as Falkirk Council and local developers in relation
to current local development opportunities, and with the Scottish Government and Museums Galleries
Scotland to ensure that the national significance of the collection is recognised and supported.
Progress towards these goals is dependent on the level of funding that can be realised, both in terms of
expansion of existing trading activities and in the successful acquisition of grants and donations.
Whilst appreciating the level of public funding already received, the Society is very conscious that
without capital grants and revenue funding from specific short-term initiatives, progress will be
threatened and will still leave the need to address the funding required for long-term sustainability.
The Society will also work to increase public access, using the collection as a source of creativity,
learning and enjoyment, and to increase the social and economic benefits that it creates by its efforts.
An increased contribution to the Scottish museums sector through collaboration and partnership
working is also anticipated.
Providing a living railway heritage experience poses challenges in terms of skills retention and
development. Operating to increasingly rigorous operational standards requires facilities that meet
modern standards. This will only be met through the injection of capital and training initiatives and
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through collaboration with the wider heritage railway community and engaging and developing our
membership.
Auditors
A resolution to re-appoint Whitelaw Wells as auditors for the ensuing year will be proposed at the
annual general meeting in accordance with sections 423 and 424 of the Companies Act 2006.
This report has been prepared in accordance with the Statement of Recommended Practice –
Accounting and Reporting by Charities and in accordance with the special provisions of Part 15 of the
Companies Act 2006 relating to small entities.
Approved by the Council of Management on 28 April 2015 and signed on its behalf by:
Redacted Signature
David Morrison
Hon. Treasurer.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
Independent Auditor’s Report to the Trustees and members of The Scottish Railway
Preservation Society
SRPS Report Dec 2014 10 150429
AUDITOR’S REPORT
We have audited the financial statements of The Scottish Railway Preservation Society for the
financial year 1 January 2014 to 31 December 2014, which comprise the Statement of Financial
Activities, the Income and Expenditure Account, the Balance Sheet and the related notes. The
financial reporting framework that has been applied in their preparation is applicable law and the
Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally
Accepted Accounting Practice applicable to Smaller Entities).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part
16 of the Companies Act 2006, and to the company’s trustees, as a body, in accordance with section
44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the
Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so
that we might state to the company's members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's members as a body, for
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Responsibilities of the Directors set out on page 3, the
trustees (who are the directors of the charitable company for the purposes of company law) are
responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment
(Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations
made under those Acts.
Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us
to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes an assessment of: whether the
accounting policies are appropriate to the charitable company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting estimates
made by the trustees; and the overall presentation of the financial statements. In addition, we read all
the financial and non-financial information in the Report of the Directors to identify material
inconsistencies with the audited financial statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the
course of performing the audit. If we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2014
and of its incoming resources and application of resources, including its income and expenditure,
for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice applicable to Smaller Entities; and
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Preservation Society
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- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities
and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland)
Regulations 2006 (as amended).
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 or the
Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our
opinion:
- the charitable company has not kept proper and adequate accounting records, or returns adequate
for our audit have not been received from branches not visited by us;
- the financial statements are not in agreement with the accounting records and returns;
- certain disclosures of directors’ remuneration specified by law are not made;
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small
companies regime and take advantage of the small companies’ exemption from the requirement to
prepare a strategic report or in preparing the report of the directors.
Redacted Signature
Kevin Cattanach
Senior Statutory Auditor
for and on behalf of Whitelaw Wells, Statutory Auditor
Whitelaw Wells is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
9 Ainslie Place
Edinburgh
EH3 6AT
28 April 2015
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
Company No. SC002375
SRPS Report Dec 2014 12 150429
STATEMENT OF FINANCIAL ACTIVITIES
for the year ended 31 December 2014
No
tes
Unrestricted
Funds
2014
Restricted
Funds
2014
Total Funds
2014
Total Funds
2013
£ £ £ £
Incoming Resources
Voluntary Income 2 121,659 53,148 174,807 280,952
Activities for generating funds 3 458,679 8,948 467,627 446,894
Gift aid payment from subsidiary 70,376 - 70,376 221,105
Investment Income
Bank interest received 3,779 - 3,779 1,678
4 140,021 66,593 206,614 183,239
Other incoming resources 2,123 - 2,123 4,974
Total incoming resources 796,637 128,689 925,326 1,138,842
Resources Expended
Costs of generating funds
Costs of generating voluntary income 5 8,067 1,078 9,145 8,067
Fundraising trading 5 192,408 - 192,408 135,599
Fundraising and publicity 5 62,611 - 62,611 82,057
Allocated fundraising costs 5 60,457 - 60,457 64,128
Total costs of generating funds 323,543 1,078 324,621 289,851
Charitable activities
Preservation of railways 5 266,441 85,245 351,686 247,419
Allocated charitable activity costs 5 206,969 - 206,969 230,785
Total charitable costs 473,410 85,245 558,655 478,204
Governance costs 5 8,101 - 8,101 6,758
Total resources expended 805,054 86,323 891,377 774,813
( 8,417) 42,366 33,949 364,029
Transfers between funds 16 17,319 ( 17,319) - -
Net movement in funds 8,902 25,047 33,949 364,029
Total funds at 1 January 2014 16 2,611,395 91,167 2,702,562 2,338,533
Total funds at 31 December 2014 2,620,297 116,214 2,736,511 2,702,562
Net incoming / (outgoing) resources before
transfers
Incoming resources from generated funds
Incoming resources from charitable purposes
The notes on pages 15 to 25 form part of the financial statements.
Movements in funds are disclosed in Note 16 to the financial statements.
The company has no recognised gains or losses other than the results for the year as set out above.
All the activities of the company are classed as continuing.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
Company No. SC002375
SRPS Report Dec 2014 13 150429
INCOME AND EXPENDITURE ACCOUNT
for the year ended 31 December 2014.
Notes
Total Funds
2014
Total Funds
2013
£ £
Incoming Resources
Incoming resources from generated funds
Voluntary Income 174,441 64,696
Activities for generating funds 3 467,627 446,894
Gift aid payment from subsidiary 70,376 221,105
Investment Income
Bank interest received 3,779 1,678
Incoming resources from charitable purposes 4 193,625 178,909
Amortisation of capital grants, donations and legacies 217,209 7,892
Other incoming resources 2,123 4,974
Total incoming resources 1,129,180 926,148
Resources Expended
Costs of generating funds
Costs of generating voluntary income 5 9,145 8,067
Fundraising trading 5 192,408 135,599
Fundraising and publicity 5 62,611 82,057
Allocated fundraising costs 5 60,457 64,128
Total costs of generating funds 324,621 289,851
Charitable activities
Preservation of railways 5 351,686 247,419
Allocated charitable activity costs 5 206,969 230,785
Total charitable costs 558,655 478,204
Governance costs 5 8,101 6,758
Total resources expended 891,377 774,813
Surplus for the financial period 237,803 151,335
Surplus brought forward at 1 January 2014 2,297,835 2,146,500
Balance carried forward at 31 December 2014 2,535,638 2,297,835
Reconciliation to balance sheet
Balance carried forward at 31 December 2014 2,535,638 2,297,835
Unamortised capital grants, donations and legacies 200,873 404,727
Closing reserves at 31 December 2014 2,736,511 2,702,562
The reconciliation to the balance sheet represents the different treatment required in accounting for
capital grants and donations. In accordance with SORP, capital grants and donations are recognised in
full in the period of receipt leaving any unspent balance in reserves. In future years the depreciation
expense is allocated to this fund. In accordance with the Companies Act, the Income and Expenditure
account only recognises the amortised element of the capital grants and donations. The unamortised
grants and donations are held in creditors and released over the life of the asset.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
Company No. SC002375
SRPS Report Dec 2014 14 150429
BALANCE SHEET
As at 31 December 2014.
Notes . Dec 2014 Dec 2013
£ £ £ £
Fixed assets
Tangible assets 9 1,317,696 1,366,203
Heritage assets 9 204,157 218,219
Investments 10 100 100
1,521,953 1,584,522
Current assets
Stock 31,815 11,700
Debtors 11 212,829 367,105
Cash at bank and in hand 999,307 763,101
1,243,951 1,141,906
12 ( 28,393) ( 22,866)
Net current assets 1,215,558 1,119,040
Total assets less current liabilities 2,737,511 2,703,562
13 ( 1,000) ( 1,000)
2,736,511 2,702,562
Unrestricted funds
Designated funds 16 2,030,495 2,014,128
General fund 16 589,802 597,267
Restricted funds 16 116,214 91,167
Total funds 2,736,511 2,702,562
Creditors: Amount falling due
after more than one year
Creditors: Amount falling due
within one year
These accounts are prepared in accordance with the special provisions in part 15 of the Companies Act
2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008).
The notes on pages 15 to 25 form part of the financial statements.
Approved by the Council of Management on 28 April 2015 and signed on its behalf by:
Redacted Signature
John Evans
SRPS Chairman
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2014.
SRPS Report Dec 2014 15 150429
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1. Accounting policies
a ) The financial statements have been prepared under the historical cost convention and in
accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the
Companies Act 2006 and follow the recommendations in Accounting and Reporting by Charities
Statement of Recommended Practice revised in March 2005.
Consolidated group accounts have also been prepared in accordance with Scottish Statutory
Instrument 2007 No.218 The Charities Accounts (Scotland) Regulations 2006 (as amended).
These financial statements contain information about the Scottish Railway Preservation Society as
an individual company and do not contain consolidated financial information as a parent of a
group.
b ) Voluntary income is received by way of donations, legacies and gifts and is included in full in the
Statement of Financial Activities when receivable.
c ) Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of
Financial Activities in the year in which they are receivable.
d ) Incoming resources from investments are included when receivable.
e ) Resources expended are recognised on an accruals basis as a liability is incurred and are reported
as part of the expenditure to which they relate. They are allocated to the particular activity where
the cost relates directly to that activity. Support costs, comprising the salary and overhead costs of
the central function, are charged out to each activity in accordance with the estimated cost of
providing the support to the direct activities. Support costs are attributed on reasonable estimates
of usage.
f ) Likewise, depreciation is charged out to the activity being undertaken by the relevant fixed assets,
except in the case of listed buildings, the care of which is considered a charitable activity in its
own right.
g ) Governance costs include legal, audit and accountancy fees associated with the preparation of
statutory accounts. Governance costs also include, where material, costs of strategic planning
activities, meetings of the Council of Management, annual and extraordinary general meetings of
the membership.
h ) Locomotives, Carriages, Wagons and Small Artefacts are considered to be heritage assets and as
such are not depreciated. All other non-heritage assets are stated at cost, less aggregate
depreciation. Depreciation is calculated on a straight line basis at rates estimated to write off these
assets evenly over their expected useful lives as follows:
Tenant’s Improvements 25 years
Permanent Way 25 years
Scottish Railway Exhibition 10 years
Plant & Machinery 5 years
Office Equipment 5 years
Motor Vehicles 5 years
i ) All purchased fixed assets are initially recorded at cost. Donated assets are recorded at nil value
due to the prohibitive cost of obtaining a valuation. Non-heritage items are only capitalised where
they cost in excess of £5,000. Acquisitions and disposals are made in line with Society policy, a
copy of which can be obtained from the registered office.
j ) Stocks are stated at the lower of cost and net realisable value.
k ) Unrestricted funds are donations and other incoming resources receivable or generated for the
objects of the charity without further specified purpose and are available as general funds.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2014.
SRPS Report Dec 2014 16 150429
l ) Designated funds are funds set up by the Council of Management to earmark assets from the
General Fund for a specific purpose.
m ) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure that
meets the criteria is charged to the fund. In general a share of support costs is not charged to
restricted funds, except when there is a specific reason to do so.
n ) Where donated items are received along with a reliable measure of their value, they are recognised
in the Statement of Financial Activities at that value. Where a valuation is not provided, donated
items are recorded at nil value due to the prohibitive cost of obtaining a valuation.
2. Voluntary Income
Unrestricted
Funds
£
Restricted
Funds
£
Total 2014
Funds
£
Total 2013
Funds
£
General Donations 15,153 44,228 59,381 39,402
Legacies 73,936 - 73,936 205,851
Gift Aid 5,710 8,920 14,630 10,616
Railtour raffles 11,180 - 11,180 8,869
Membership subs 15,680 - 15,680 16,214
Total Voluntary Income 121,659 53,148 174,807 280,952
3. Activities for Generating Funds
Unrestricted
Funds
£
Restricted
Funds
£
Total 2014
Funds
£
Total 2013
Funds
£
Train operations 416,620 5,500 422,120 408,366
Retail - 3,448 3,448 -
Catering 23,567 - 23,567 21,763
Other Fundraising Activities 18,492 - 18,492 16,765
Total Activities for generated
funds 458,679 8,948 467,627 446,894
4. Incoming Resources from Activities to Further the Charity’s Objects.
Unrestricted
Funds
£
Restricted
Funds
£
Total 2014
Funds
£
Total 2013
Funds
£
SRE admissions 21,353 - 21,353 19,969
Revenue grants and Joint
Working Agreements received 60,192 46,404 106,596 122,827
Capital grant received - 12,989 12,989 -
Rolling stock hire 5,000 7,200 12,200 5,000
Facilities hire 53,476 - 53,476 35,443
Total grants and contracts 140,021 66,593 206,614 183,239
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014
17 150429
5. Resources Expended
Go
ver
nan
ce
Fun
dra
isin
g
Cura
tori
al &
edu
cati
on
Buil
din
gs
and
Str
uct
ure
s
Per
man
ent
Way
Car
riag
es a
nd
Wag
ons
Rai
ltou
r S
erv
ices
Ste
am L
oco
mo
tives
Die
sel
and
Ele
ctri
c H
aula
ge
20
14
Tota
l
20
13
Tota
l
Direct Costs
Staff Costs - 42,047 44,463 - 2,181 39,958 11,741 578 495 141,463 151,556
Catering Supplies - 9,803 - - - - - - - 9,803 9,265
Promotion - 10,357 - - - - - - - 10,357 11,539
Special Events - 95,445 - - - - - - - 95,445 82,142
Train Operating Costs - 66,136 400 - - - - - - 66,536 33,089
Consumables and Tools - 2,642 2,637 155 726 3,809 - 12,066 4,323 26,358 22,324
Communications 245 12,244 806 - - 10 - 837 - 14,142 16,103
Contractors - 4,720 1,881 16,611 10,585 1,535 - 58,247 50 93,629 70,451
Plant & Machinery Repairs - 1,583 - - 305 239 - 3,748 22 5,897 3,196
Materials and Parts - 253 6,871 26,582 13,074 41,815 - 27,558 13,109 129,262 48,539
Carriage - - 45 - - - - 8,986 325 9,356 8,434
Other 7,856 7,192 507 241 3,076 371 - 1,944 516 21,703 23,262
Total direct expenses 8,101 252,422 57,610 43,589 29,947 87,737 11,741 113,964 18,840 623,951 479,900
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014
18 150429
5. Resources Expended (cont).
Go
ver
nan
ce
Fun
dra
isin
g
Cu
rato
rial
& e
duca
tion
Bu
ildin
gs
and
Str
uct
ure
s
Per
man
ent
Way
Car
riag
es a
nd W
agon
s
Rai
lto
ur
Ser
vic
es
Ste
am L
oco
moti
ves
Die
sel
and E
lect
ric
Hau
lag
e
201
4 T
ota
l
201
3 T
ota
l
B/F 8,101 252,422 57,610 43,589 29,947 87,737 11,741 113,964 18,840 623,951 479,900
Support costs allocated to
activities
Payroll -Support - 9,286 6,749 3,563 5,345 3,563 - 3,563 3,563 35,632 38,232
Utilities - 8,230 4,115 4,115 4,115 4,115 - 4,115 4,115 32,920 37,095
Rent, Insurance - 9,103 7,810 4,138 4,138 4,138 - 4,138 4,138 37,603 46,331
Communications - 846 1,269 1,269 1,269 1,269 - 1,269 1,269 8,460 10,087
Contractors & Consultants - - - - 4,212 4,213 - 4,213 4,213 16,851 9,303
Bank Changes - 3,790 271 271 271 271 - 271 271 5,416 4,108
Depreciation - 26,651 47,140 5,798 12,561 2,509 - 2,499 8,628 105,786 105,973
Mainline Connection
Maintenance - 1,605 - - 1,605 - - - - 3,210 3,118
Loss on disposal of fixed assets - - 1,269 - - 12,710 - - - 13,979 31,142
Other Support Costs - 946 1,135 946 1,136 1,134 - 1,136 1,136 7,569 9,524
Total Support Costs - 60,457 69,758 20,100 34,652 33,922 - 21,204 27,333 267,426 294,913
Total 8,101 312,879 127,368 63,689 64,599 121,659 11,741 135,168 46,173 891,377 774,813
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014
19 150429
6. Net Incoming Resources for the Year
This is stated after charging/(crediting):
2014
Total
2013
Total
£ £
Depreciation 105,785 105,973
Loss on disposal of fixed assets 13,979 31,141
Management committee's remuneration 23,469 33,159
Auditors’ remuneration:
Audit services 6,700 6,350
One member of the Council of Management, as permitted by the Society’s Memorandum and
Articles of Association received remuneration. Amanda Kilburn received payment under her
contract of employment as Business Development Manager.
During the previous year two other directors received remuneration in respect of duties not
connected to their roles as directors, as permitted by the Memorandum and Articles.
Six members of the Council of Management received reimbursements of travel expenses during
the year of £1,362. (2013: £476). The Directors are covered by Directors’ Liability Insurance at a
cost of £866 (2013: £905)
7. Staff Costs and Numbers
2014
Total
2013
Total
£ £
Salaries and wages 161,208 173,016
Social security costs 10,977 14,366
Pensions 1,505 1,422
Training 3,405 985
177,095 189,789
No employee received emoluments of more than £60,000.
The weekly average number of employees during the year, calculated on the basis of full time
equivalents, and rounded to the nearest whole number was as follows:
2014
Total
2013
Total
Charitable activities 4 4
Trading activities 2 2
Administration staff 2 2
8 8
8. Taxation
The charitable company is exempt from corporation tax on its charitable activities.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 20 150429
9. Tangible Fixed Assets
Land
Tenants
Improvements
Scottish
Railway
Exhibition
Permanent
Way Locomotives
Carriages
and
Wagons
Plant and
Machinery
Office
Equipment Total
Cost
At 1 Jan 2014 100 2,311,299 192,282 462,037 50,857 167,362 37,000 3,420 3,224,357
Additions in year - 12,461 - - - - 10,560 34,258 57,279
Disposals in year - - - - ( 7,764) ( 6,298) - - ( 14,062)
At 31 Dec 2014 100 2,323,760 192,282 462,037 43,093 161,064 47,560 37,678 3,267,574
Depreciation
At 1 Jan 2014 - 1,156,003 192,275 252,739 - - 35,499 3,419 1,639,935
Charge for year - 82,762 - 12,561 - - 3,611 6,852 105,786
Depreciation on
Disposals - - - - - - - - -
At 31 Dec 2014 - 1,238,765 192,275 265,300 - - 39,110 10,271 1,745,721
Net book value
At 31 Dec 2014 100 1,084,995 7 196,737 43,093 161,064 8,450 27,407 1,521,853
Net book value
at 31 Dec 2013 100 1,155,296 7 209,298 50,857 167,362 1,501 1 1,584,422
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 21 150429
9. Tangible Fixed Assets (cont)
Heritage Assets
Included within tangible fixed assets are heritage assets acquired at a cost of £204,157 (Dec
2013: £218,219). During the year the charity acquired no further heritage assets but disposed of
assets with a net book value of £3,298, receiving proceeds of £83. In addition, heritage assets with
a net book value of £10,764 were transferred to the Scottish Railway Museum Collections Trust.
There have been cumulative additions and disposals of £7,000 and £33,141, respectively, in the
previous four years.
Locomotives, Carriages and Wagons and Small Artefacts are considered to be heritage assets as
they are preserved as part of the heritage of the nation. The assets are held as part of a museum
display to show the growth and development of the British rail transport system from the late 19th
century to 1970.
10. Investments
The sole trading subsidiary is SRPS Railtours Limited, a company registered in Scotland, whose
principal activity is the operation of railtours on the national network. The Society owns 100 £1
Ordinary shares, which represents the entire issued ordinary share capital of SRPS Railtours
Limited. The aggregate capital and reserves of SRPS Railtours Limited at 31 December 2014 is
£7,362 (Dec 2013: £7,362) and the profit for the year 1 January 2014 to 31 December 2014 after
Gift Aid is £0 (2013 £0). Income and expenditure for the year was £546,780. (2013 : £712,173).
In addition, the Scottish Railway Museum Trust (SRMT) may be regarded as a subsidiary
undertaking by virtue of the Society’s control of the trustees and the Scottish Railway Museum
Collections Trust (SRMCT) by virtue of the fact that the Society has the right to nominate a
majority of the trustees. Further information regarding these entities can be found in the Report of
the Directors. SRMT has no assets and no income or expenditure. SRMCT has no income or
expenditure. It holds only heritage assets valued at £0.
11. Debtors
Included in debtors is an amount due from the subsidiary company of £70,376 (Dec 2013: £128,901).
The amount outstanding relates to covenanted profits which will be reimbursed early in the following
financial year.
12. Creditors: Amounts Falling Due Within One Year
At 31 Dec
2014
At 31 Dec
2013
£ £
Trade creditors 8,642 8,098
Other creditors and accruals 19,751 14,768
28,393 22,866
At 31 Dec
2014
At 31 Dec
2013
£ £
Grants Receivable 8,500 26,000
Trade debtors 23,339 29,244
Amount due from subsidiary undertakings 70,376 128,901
VAT recoverable 19,230 9,448
Sundry debtors and prepayments 91,384 173,512
Total 212,829 367,105
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 22 150429
13. Creditors: Amounts Falling Due After One Year
At 31 Dec
2014
£
At 31 Dec
2013
£
Bo’ness & Kinneil Railway Company Ltd. 1,000 1,000
The Society continues to enjoy a long-term loan of £1,000 from the Bo’ness and Kinneil Railway
at zero interest and no fixed terms for repayment.
14. Commitments and Contingent Liability
During the year the charity entered into a commitment to purchase a Stanier 8F locomotive at a
total cost of £106,000. The balance outstanding at the year end amounted to £76,000 and is due to
be paid in instalments over three years should sufficient funds be raised, as forecast by the
directors, with £24,000 payable each year. A deposit of £30,000 was paid during the year and is
included within Sundry Debtors since the Charity does not take ownership until the balance is
settled in full. Should the Charity choose not to complete the purchase, which the directors believe
is unlikely, £15,000 of the deposit would be non-returnable and would be written off to the
Statement of Financial Activities. A restricted fund has been created for donations toward the
purchase, as described at note 16.
15. Analysis of Net Assets Between Funds
General Funds
Designated
Funds
Restricted
Funds Total Funds
Tangible fixed assets - 1,521,853 - 1,521,853
Investments 100 - - 100
Current Assets 590,702 508,642 116,214 1,215,558
Long term loan ( 1,000) - - ( 1,000)
Net assets at 31 Dec 2014 589,802 2,030,495 116,214 2,736,511
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 23 150429
16. Movement in Funds
As at 1 Jan
2014
Incoming
Resources
Outgoing
Resources
Transfers
In
Transfers
Out
As of 31
Dec 2014
£ £ £ £ £ £
Restricted Funds
Life membership 19,027 - ( 1,078) - - 17,949
Special Project Fund
Running Shed Doors 9,806 13,185 ( 22,991) - - -
Site Security 4,330 12,989 - - ( 17,319) -
Education Project - 32,090 ( 26,146) - - 5,944
Caley Tank CR419 - 10,326 ( 10,326) - - -
Morayshire - 13,648 ( 3,683) - - 9,965
Stanier 8F - 30,666 ( 8,355) - - 22,311
Other projects 58,004 15,785 ( 13,744) - - 60,045
Total Restricted Funds 91,167 128,689 ( 86,323) - ( 17,319) 116,214
Unrestricted funds
Designated Funds
Legacy Fund 314,706 73,936 - - - 388,642
Mainline connection 115,000 - - 5,000 - 120,000
Railtour Services - 11,741 ( 11,741) - - -
Fixed asset fund 1,584,422 - ( 119,765) 57,279 ( 83) 1,521,853
General funds 597,267 710,960 ( 673,548) 83 ( 44,960) 589,802
Total unrestricted funds 2,611,395 796,637 ( 805,054) 62,362 ( 45,043) 2,620,297
- - - - - -
Total funds 2,702,562 925,326 ( 891,377) 62,362 ( 62,362) 2,736,511
Fund Transfers
Following a review of funds, the Directors have approved the following fund transfers.
From the General Fund to the Mainline Connection designated fund sum of £5,000.
From the General Fund to the Fixed Asset designated fund £16,939 for the CCTV installation.
From the General Fund to the Fixed Asset designated fund £12,461 for a new diesel fuel
storage tank.
From the General Fund to the Fixed Asset designated fund £10,560 for the purchase of a fork
lift truck.
From the Site Security Fund to the Fixed Asset designated fund the sum of £17,319 being the
value of the CCTV installation works funded by the restricted fund.
From the Fixed Asset designated fund to the General Fund, £83 being the proceeds of a
disposal of a fixed asset.
Special Project Fund
The Restricted Income funds are funds primarily for the conservation, restoration and maintenance
of the Society’s heritage assets. Some funds have been received as a contribution to specific
departmental spending. Expenses are allocated to the fund as and when incurred on the work on
the individual projects. A detailed breakdown of the fund balance can be obtained from the
registered office. Funds forming part of the Special Project Fund with transactions of greater than
£5,000 are described below. Funds with transactions of £5,000 or less are amalgamated within
Other projects.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 24 150429
Education Project
This fund was set up to implement an improved education offering. The fund allowed the
appointment of a full time education officer and to update the education pack and distribute it to
schools throughout Central Scotland. The directors wish to acknowledge a generous grant from
Museums Galleries Scotland and the Robertson Trust towards this fund.
Running Shed Doors
This project, part funded by Museums Galleries Scotland, replaced the doors of the Steam
Locomotive Running Shed. The old doors were now beyond repair and the new doors ensure the
security of the locomotives stored inside.
Site Security
This fund was for the installation and operation of a CCTV system covering the Bo’ness site. It is
intended to act as a deterrent to thieves and to reduce vandalism.
Caledonian Tank Locomotive No. 419
This steam locomotive appears on the Society’s logo. The boiler certificate expired in March
2009, and the locomotive is now under restoration.
LNER Locomotive No 246 Morayshire
The Society was given on loan LNER No.246 Morayshire by National Museums Scotland for the
purpose of restoration to running order and operation on the Bo’ness and Kinneil Railway and
other preserved railways. The reserve represents funds being gathered for the ongoing
conservation and maintenance process.
LMS Designed Stanier 8F locomotive No. 45170
As explained in note 14, the SRPS has an option to acquire this locomotive, built in 1942 by the
North British Locomotive Company. It was loaned by the Ministry of Supply to the LMS before
being shipped to Turkey in 1943. It was returned to the UK in 2010, and is currently on display in
the Museum. This fund was set up to secure the purchase of the locomotive and its subsequent
restoration.
Life Membership
The Society has several categories of life membership. Members were invited to join for life and
were then entitled to receive the Society’s magazine and other benefits. All categories of life
membership are now closed to new members. The reserve represents the balance of the funds
available for the remaining years of life membership.
Unrestricted Designated Funds
Legacy Fund
This fund was set up to hold legacies that were received with no specific instructions as to how
they were to be used. Council have designated these funds as match funding for future capital
projects, and specifically the steam shed workshop and Bo’ness Station Extension.
Mainline Connection Fund
The mainline connection renewal is an obligation of the Bo’ness & Kinneil Railway Company, the
owners of the land, to Network Rail to replace the connection when required. The Directors are of
the view that the Society may be required to meet the obligation to ensure a connection in the
future and have therefore created a designated fund.
THE SCOTTISH RAILWAY PRESERVATION SOCIETY
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2014.
SRPS Report Dec 2014 25 150429
Railtour Services
The Railtour fleet of coaches are heritage assets and the fund is used to provide services which
enable the Railtour Company to conserve, restore and maintain the fleet for use on the national
railway network.
Fixed Assets Fund
The Fixed Asset designated fund reflects the net book value of unrestricted fixed assets.
17. Company Limited by Guarantee
The members of the Society are obliged to contribute £2 each in the event of the company being
wound up.
18. Related Party Transactions
The company has taken advantage of the exemption in Financial Reporting Standard 8 from the
requirement to disclose transactions with group entities on the grounds that consolidated financial
statements are prepared.
During the previous year the Society made purchases of £780 from Scottish 37 Group Limited
(STG) and sales of £180 to STG, of which nothing was outstanding at the year end. Graham Scott,
a director of the Society in 2013, is a director of STG.
No one individual had control over the charity during either the current or previous year.