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

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. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Accounting policies ................................................................................................................... 15 Voluntary Income ...................................................................................................................... 16 Activities for Generating Funds................................................................................................. 16 Incoming Resources from Activities to Further the Charity’s Objects...................................... 16 Resources Expended .................................................................................................................. 17 Net Incoming Resources for the Year ....................................................................................... 19 Staff Costs and Numbers ........................................................................................................... 19 Taxation ..................................................................................................................................... 19 Tangible Fixed Assets ............................................................................................................... 20 Investments .............................................................................................................................. 21

SRPS Report Dec 2014

CONTENTS (Continued) 11. 12. 13. 14. 15. 16.

Debtors ..................................................................................................................................... 21 Creditors: Amounts Falling Due Within One Year .................................................................. 21 Creditors: Amounts Falling Due After One Year .................................................................... 22 Commitments and Contingent Liability ................................................................................... 22 Analysis of Net Assets Between Funds ................................................................................... 22 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

SRPS Report Dec 2014

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 James Verth David J. Morrison Alexander Turner David Roderick

Chairman Vice-Chairman Finance Falkirk Council (resigned 11 February 2015) General Secretary appointed 28 July 2014

Mark Ashmole Rowan J. Brown Norman J. H. Girvan Ian R. Gordon Stefan G. Kay Amanda Kilburn Matthew Lambert Robert Marshall Douglas McEwan Andrew McLean Victor E. Michel James Robertson Brian M. Thomson

appointed 31 March 2014 resigned 2 July 2014

resigned 2 July 2014

SRPS Report Dec 2014

1

resigned 1 January 2015

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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

SRPS Report Dec 2014

2

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 subcommittees 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 SRPS Report Dec 2014

3

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 ;

SRPS Report Dec 2014

4

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 SRPS Report Dec 2014

5

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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

SRPS Report Dec 2014

6

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 SRPS Report Dec 2014

7

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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 SRPS Report Dec 2014

8

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY REPORT OF THE DIRECTORS for the year ended 31 December 2014. 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.

SRPS Report Dec 2014

9

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY Independent Auditor’s Report to the Trustees and members of The Scottish Railway Preservation Society 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

SRPS Report Dec 2014

10

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY Independent Auditor’s Report to the Trustees and members of The Scottish Railway Preservation Society -

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

SRPS Report Dec 2014

11

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY Company No. SC002375 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2014 Restricted Funds 2014 £

Total Funds 2014 £

Total Funds 2013 £

121,659 458,679 70,376

53,148 8,948 -

174,807 467,627 70,376

280,952 446,894 221,105

3,779 140,021 2,123

66,593 -

3,779 206,614 2,123

1,678 183,239 4,974

796,637

128,689

925,326

1,138,842

5 5 5 5

8,067 192,408 62,611 60,457 323,543

1,078 1,078

9,145 192,408 62,611 60,457 324,621

8,067 135,599 82,057 64,128 289,851

5 5

266,441 206,969 473,410

85,245 85,245

351,686 206,969 558,655

247,419 230,785 478,204

5

8,101

8,101

6,758

Notes

Unrestricted Funds 2014 £

Incoming Resources Incoming resources from generated funds Voluntary Income Activities for generating funds Gift aid payment from subsidiary Investment Income Bank interest received Incoming resources from charitable purposes Other incoming resources

2 3

4

Total incoming resources Resources Expended Costs of generating funds Costs of generating voluntary income Fundraising trading Fundraising and publicity Allocated fundraising costs Total costs of generating funds Charitable activities Preservation of railways Allocated charitable activity costs Total charitable costs Governance costs Total resources expended

805,054

86,323

891,377

774,813

( 8,417)

42,366

33,949

364,029

17,319

( 17,319)

-

8,902

25,047

33,949

364,029

2,611,395

91,167

2,702,562

2,338,533

2,620,297

116,214

2,736,511

2,702,562

Net incoming / (outgoing) resources before transfers Transfers between funds

16

Net movement in funds Total funds at 1 January 2014 Total funds at 31 December 2014

16

-

-

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.

SRPS Report Dec 2014

12

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY Company No. SC002375 INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2014.

Notes

Total Funds 2014 £

Total Funds 2013 £

3

174,441 467,627 70,376

64,696 446,894 221,105

3,779 193,625 217,209 2,123

1,678 178,909 7,892 4,974

1,129,180

926,148

5 5 5 5

9,145 192,408 62,611 60,457 324,621

8,067 135,599 82,057 64,128 289,851

5 5

351,686 206,969 558,655

247,419 230,785 478,204

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

Balance carried forward at 31 December 2014 Unamortised capital grants, donations and legacies

2,535,638 200,873

2,297,835 404,727

Closing reserves at 31 December 2014

2,736,511

2,702,562

Incoming Resources Incoming resources from generated funds Voluntary Income Activities for generating funds Gift aid payment from subsidiary Investment Income Bank interest received Incoming resources from charitable purposes Amortisation of capital grants, donations and legacies Other incoming resources

4

Total incoming resources

Resources Expended Costs of generating funds Costs of generating voluntary income Fundraising trading Fundraising and publicity Allocated fundraising costs Total costs of generating funds Charitable activities Preservation of railways Allocated charitable activity costs Total charitable costs Governance costs

Reconciliation to balance sheet

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.

SRPS Report Dec 2014

13

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY Company No. SC002375 BALANCE SHEET As at 31 December 2014.

Notes

. £

Fixed assets Tangible assets Heritage assets Investments Current assets Stock Debtors Cash at bank and in hand

Creditors: Amount falling due within one year

9 9 10

11

12

Dec 2014 £

£

1,317,696 204,157 100 1,521,953

1,366,203 218,219 100 1,584,522

31,815 212,829 999,307

11,700 367,105 763,101

1,243,951

1,141,906

( 28,393)

Dec 2013 £

( 22,866)

Net current assets

1,215,558

1,119,040

Total assets less current liabilities

2,737,511

2,703,562

Creditors: Amount falling due after more than one year

Unrestricted funds Designated funds General fund Restricted funds

13

( 1,000)

16 16 16

Total funds

( 1,000)

2,736,511

2,702,562

2,030,495 589,802 116,214

2,014,128 597,267 91,167

2,736,511

2,702,562

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

SRPS Report Dec 2014

14

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2014. 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 Permanent Way Scottish Railway Exhibition Plant & Machinery Office Equipment Motor Vehicles

25 years 25 years 10 years 5 years 5 years 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.

SRPS Report Dec 2014

15

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2014. 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

General Donations Legacies Gift Aid Railtour raffles Membership subs Total Voluntary Income

Unrestricted Funds £

Restricted Funds £

Total 2014 Funds £

Total 2013 Funds £

15,153 73,936 5,710 11,180 15,680 121,659

44,228 8,920 53,148

59,381 73,936 14,630 11,180 15,680 174,807

39,402 205,851 10,616 8,869 16,214 280,952

3. Activities for Generating Funds

Train operations Retail Catering Other Fundraising Activities Total Activities for generated funds

Unrestricted Funds £

Restricted Funds £

Total 2014 Funds £

Total 2013 Funds £

416,620 23,567 18,492

5,500 3,448 -

422,120 3,448 23,567 18,492

408,366 21,763 16,765

458,679

8,948

467,627

446,894

4. Incoming Resources from Activities to Further the Charity’s Objects.

Unrestricted Funds £ SRE admissions Revenue grants and Joint Working Agreements received Capital grant received Rolling stock hire Facilities hire Total grants and contracts

SRPS Report Dec 2014

Restricted Funds £

Total 2014 Funds £

Total 2013 Funds £

21,353

-

21,353

19,969

60,192 5,000 53,476 140,021

46,404 12,989 7,200 66,593

106,596 12,989 12,200 53,476 206,614

122,827 5,000 35,443 183,239

16

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014.

2014 Total

2013 Total

Diesel and Electric Haulage

Steam Locomotives

Railtour Services

Carriages and Wagons

Permanent Way

Buildings and Structures

Curatorial & education

Fundraising

Governance

5. Resources Expended

Direct Costs Staff Costs Catering Supplies Promotion Special Events Train Operating Costs Consumables and Tools Communications Contractors Plant & Machinery Repairs Materials and Parts Carriage Other

245 7,856

42,047 9,803 10,357 95,445 66,136 2,642 12,244 4,720 1,583 253 7,192

44,463 400 2,637 806 1,881 6,871 45 507

155 16,611 26,582 241

2,181 726 10,585 305 13,074 3,076

39,958 3,809 10 1,535 239 41,815 371

11,741 -

578 12,066 837 58,247 3,748 27,558 8,986 1,944

495 4,323 50 22 13,109 325 516

141,463 9,803 10,357 95,445 66,536 26,358 14,142 93,629 5,897 129,262 9,356 21,703

151,556 9,265 11,539 82,142 33,089 22,324 16,103 70,451 3,196 48,539 8,434 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

SRPS Report Dec 2014 17

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014.

Steam Locomotives

2014 Total

2013 Total

Diesel and Electric Haulage

Railtour Services

Carriages and Wagons

Permanent Way

Buildings and Structures

Curatorial & education

Fundraising

Governance

5. Resources Expended (cont).

11,741

113,964

18,840

623,951

479,900

-

3,563 4,115 4,138 1,269 4,213 271 2,499

3,563 4,115 4,138 1,269 4,213 271 8,628

35,632 32,920 37,603 8,460 16,851 5,416 105,786

38,232 37,095 46,331 10,087 9,303 4,108 105,973

12,710 1,134 33,922

-

1,136 21,204

1,136 27,333

3,210 13,979 7,569 267,426

3,118 31,142 9,524 294,913

121,659

11,741

135,168

46,173

891,377

774,813

B/F Support costs allocated to activities Payroll -Support Utilities Rent, Insurance Communications Contractors & Consultants Bank Changes Depreciation Mainline Connection Maintenance Loss on disposal of fixed assets Other Support Costs Total Support Costs

8,101

252,422

57,610

43,589

29,947

87,737

-

9,286 8,230 9,103 846 3,790 26,651

6,749 4,115 7,810 1,269 271 47,140

3,563 4,115 4,138 1,269 271 5,798

5,345 4,115 4,138 1,269 4,212 271 12,561

3,563 4,115 4,138 1,269 4,213 271 2,509

-

1,605 946 60,457

1,269 1,135 69,758

946 20,100

1,605 1,136 34,652

Total

8,101

312,879

127,368

63,689

64,599

SRPS Report Dec 2014 18

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 6. Net Incoming Resources for the Year This is stated after charging/(crediting): 2014 Total Depreciation Loss on disposal of fixed assets Management committee's remuneration Auditors’ remuneration: Audit services

2013 Total

£ 105,785 13,979 23,469

£ 105,973 31,141 33,159

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 £ 161,208 10,977 1,505 3,405 177,095

Salaries and wages Social security costs Pensions Training

2013 Total £ 173,016 14,366 1,422 985 189,789

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:

Charitable activities Trading activities Administration staff

2014 Total

2013 Total

4 2 2

4 2 2

8

8

8. Taxation The charitable company is exempt from corporation tax on its charitable activities.

SRPS Report Dec 2014 19

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 9. Tangible Fixed Assets

Land

Tenants Improvements

Scottish Railway Exhibition

Cost At 1 Jan 2014 Additions in year Disposals in year At 31 Dec 2014

100 100

2,311,299 12,461 2,323,760

192,282 192,282

462,037 462,037

50,857 ( 7,764) 43,093

Depreciation At 1 Jan 2014 Charge for year

-

1,156,003 82,762

192,275 -

252,739 12,561

-

-

35,499 3,611

3,419 6,852

1,639,935 105,786

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

SRPS Report Dec 2014

Permanent Way

20

Locomotives

Carriages and Wagons

Plant and Machinery

Office Equipment

167,362 ( 6,298) 161,064

37,000 10,560 47,560

3,420 34,258 37,678

3,224,357 57,279 ( 14,062) 3,267,574

Total

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 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 19 th 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 At 31 Dec 2014 £ 8,500 23,339 70,376 19,230 91,384 212,829

Grants Receivable Trade debtors Amount due from subsidiary undertakings VAT recoverable Sundry debtors and prepayments Total

At 31 Dec 2013 £ 26,000 29,244 128,901 9,448 173,512 367,105

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 £ 8,642 19,751 28,393

Trade creditors Other creditors and accruals

SRPS Report Dec 2014

21

At 31 Dec 2013 £ 8,098 14,768 22,866 150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 13. Creditors: Amounts Falling Due After One Year At 31 Dec 2014 £ 1,000

Bo’ness & Kinneil Railway Company Ltd.

At 31 Dec 2013 £ 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

Tangible fixed assets Investments Current Assets Long term loan Net assets at 31 Dec 2014

SRPS Report Dec 2014

General Funds 100 590,702 ( 1,000) 589,802

22

Designated Funds 1,521,853 508,642 2,030,495

Restricted Funds 116,214 116,214

Total Funds 1,521,853 100 1,215,558 ( 1,000) 2,736,511

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 16. Movement in Funds As at 1 Jan 2014 £ Restricted Funds Life membership Special Project Fund Running Shed Doors Site Security Education Project Caley Tank CR419 Morayshire Stanier 8F Other projects Total Restricted Funds Unrestricted funds Designated Funds Legacy Fund Mainline connection Railtour Services Fixed asset fund General funds Total unrestricted funds Total funds

Incoming Resources £

19,027

-

Outgoing Resources £

Transfers In £

( 1,078)

-

Transfers Out £ -

As of 31 Dec 2014 £ 17,949

9,806 4,330 58,004 91,167

13,185 12,989 32,090 10,326 13,648 30,666 15,785 128,689

( 22,991) ( 26,146) ( 10,326) ( 3,683) ( 8,355) ( 13,744) ( 86,323)

-

( 17,319) ( 17,319)

5,944 9,965 22,311 60,045 116,214

314,706 115,000 1,584,422 597,267 2,611,395 2,702,562

73,936 11,741 710,960 796,637 925,326

( 11,741) ( 119,765) ( 673,548) ( 805,054) ( 891,377)

5,000 57,279 83 62,362 62,362

( 83) ( 44,960) ( 45,043) ( 62,362)

388,642 120,000 1,521,853 589,802 2,620,297 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.

SRPS Report Dec 2014

23

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 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.

SRPS Report Dec 2014

24

150429

THE SCOTTISH RAILWAY PRESERVATION SOCIETY NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2014. 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.

SRPS Report Dec 2014

25

150429