THE & CANAL TRUST LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

S1. MARCH 2OP

REGISTERED NUMBERz o2986 4r7

CHARITY REGISTRATION NUMBERz to 4zzz7

Smith Cooper LLP zLace Market Square NGr rPB THE DERBY & SANDIACRE CANAL TRUST LIMITED

INDEX TO THE FINANCIAL STATEMENTS

Page

Company information

Report of the Council 2-4

Auditors'report S-6

Statement of financial activities

Balance sheet

Notes to the financial statements 9-L2

Summary of Income and Expenditure 13 THE DERBY & SANDIACRE CANAL TRUST LIMITED LEGAL AND ADMINISTRATIVE INFORMATION

COUNCIL: ORDINARY DIRECTORS: Mr P N Horton-Turner Mr S Jeffery MrCWJMadge Mr RM Hartley Mrs V Clare Miss J K Lee Mr M Tittley Mr M Snaith

NOMINATED DIRECTORS: - Mr R Salmon County Council - CllrW S Major District Council - Cllr P Murray Erewash Borough Council - Cllr G Smith Inland Waterways Association - MrJ Baylis

REGISTERED OFFICE: zz - z6 Nottingham Road Stapleford Nottingham NGg BAA

AUDITORS: Smith Cooper LLP Chartered Accountants zLace Market Square Nottingham NGr rPB

BANI(ERS: Barclays Bank plc r Derby Road Nottingham NGro rJL

SOLICITORS: Bakewells r8r Horninglow Street Burton on Trent Derbys DEr4 rNJ

Page I THE DERBY & SANDIACRE CA]\IAL TRUST LIMITED REPORT OF THE COTINCIL FOR THE YEAR ENDED 31 MARCH 2012

The Council presents its report and financial statements for the year ended 3r March zorz.

Governing Documents The Trust is a Registered Charity and a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Recruitrnent and Appointrnent of Trustees In accordance with Article 26, a third of all Members of the Council retire at the Annual General Meeting and being eligible, offer themselves for re-election.

The Nominated Directors are appointed by the Four Local Authorities on an annual renewable basis being drawn from Councillors and/or Senior members of staff, or by the membership of Restoration Partners. The Ordinary Directors are invited to join the Trustees based on their knowledge and experience ofthe canal project.

Trustee Induction and Training AII Nominated Directors act in a non executive capacity. Their positions as senior members of local Councils provide a good grounding in non executive requirements. Executive directors are recruited for their existing functional knowledge and experience and are already well qualified to act. No formal training is therefore required.

Ernployees The Trust employed no people during the period.

Major decisions are taken by the members of the Council.

RiskManagernent Major risks to the Trust have been reviewed and systems and procedures put into place to manage those risks.

The Trust has appointed an advisor to maintain a formal risk register and this is periodically reviewed and updated at sub-committee meetings. Major changes are communicated to the Council at quarterly meetings.

A key risk is that some sections of the canal line owned by the Trust are in water and the Trust is aware of its land drainage responsibilities to prevent flooding of neighbours. The risk is managed by periodic inspection and clearance of drainage channels.

Organisational Structure The Trust meets four times a year to consider strates/ and progress. Additional updates are communicated as required electronically. The main running of the Trust is delegated to a Development Committee comprising Paul Turner (Chairman), Steve Jeffery (Chairman), Chris Madge (Secretary) and Chris ReesFitzPatrick which meets bi weekly. Most day to day administration is delegated to Chris ReesFitzPatrick, with expenditure and legal commitments being approved by the Executive Committee.

Public Benefit The Council have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. In particular, the Council consider how planned activities will contribute to the aims and objectives they have set. The trust's activities and beneficiaries are described below.

Page2 THE DERBY & SANDIACRE CANAL TRUST LIMITED REPORT OF THE COUNCIL FOR THE YEAR ENDED 31 MARCH 2OP Continued

Obj ectives and Activities The objectives of the Trust are to restore the former Derby Canal as a navigable through- waterway from the Erewash Canal at Sandiacre to the Trent and Mersey Canal at Swarkestone via central Derby, as close as possible to the original route, thereby creating a cruising ring and re-connecting Derby to the national canal network.

The Canal Trust also seeks to maximise the sustainable economic, job creation, environmental, tourism, qualrty of life, nature conservancy, educational, heritage and leisure benefits for the City of Derby, the Borough of Erewash, South Derbyshire District and the East region generally.

The Canal Trust has also prepared detailed policy statements on a number of major issues relatingto the restoration of the canal inciuding environmental, canal corridor access and leisure, and Health and Safety. The Trust seeks to be the catalyst, not only for the canal restoration but also the enhancement of the neighbouring land corridor, in partnership with local authorities, landowners, community and volunteer groups, developers and all neighbours and residents.

The Canal Trust is supported by the members of the Derby & Sandiacre Canal Society, who_se membership subscriptions are paid directly to the Trust to enable Gift Aid tax relief to be claimed. The Canal Society is sef-funding and its significant contribution, both financial and in volunteer time, is acknowledged.

Achievements and Perforrnance The trust is satisfied with its achievements for the year. In August zorr planning permission was granted for the Canal Route by Derby City Council, South Derbyshire District Council and Erewash Borough Council.

Financial Review The Statement of Financial Activities for the year is set out on page 7 of the financial statements. A summary of the financial results and the work of the Charity is set out below:

Income to the Trust for zotz of Lt5,648 was an increase from zorr (Et,Z45) and expenditure for zotz of €r,8BB was less than zorr (Lg,zg6).

Reserves The Trust has aimed to build up unrestricted funds to enable it to match funding for future grant applications, whilst being able to meet the day to day running costs of the Trust and loan repayrnents. At the end of March 2012 the unrestricted funds balance was Lt9,9zo (zou: t6,t6o).

Capital Guaranteed Ev6ry member undertakes to contribute to the assets of the Trust, in the event of the Trust being wound up, such sums as may be required not exceeding f r. At 3r March zotz there were six members.

Plans for Future Periods The development committee meets every 2 weeks and are drawing up detailed plans and costings for the canal restoration. This is based on a section by section feasability and the Trust is actively seeking development partners along different lengths of the Route. Professional fund raisers are advising the Trust on Funding opportunities.

Page 3 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE DERBY & SANDIACRE CANAL TRUST LIMITED

We have audited the financial statements of The Derby & Sandiacre Canal Trust Limited for the year applied in their ended 3r March 2012 on pages Z to rz. The financial reporting framework that has been preparition is applicable jaw and the Financial Reorting Standard for Smaller Entities (effective April ioog) (United Kingdom Generally Accepted Accounting Practiceapplicable to smaller entities).

This report is made solely to the charity's trustees, as a body, in accordance with Section r54 of the Charities Act 2011 and iegulations made under section 44 of that Act. Our audit work has been undertaken so that we mighi state to the chari!y's trustees those matters we are required to state to them in an auditor's report ut d fot no other purpose. To the fullest extent permitted by,lary, we do not accept or assume r".pooiibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Fustees and auditor es eiplained moie fuIly in the Trustees' Responsibilities Statement set out on PaBe 4, the trustees (who ur" ufio the directors oi 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.

The trustees have elected for the financial statements to be audited in accordance with the Charities Act zorr rather than the Companies Act 2006. Accordingly we have been appointed as auditor under section 44 of the Charities Act zbrr and report in accordance with regulations made under section r54 of that Act.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicabie law and International Standards on AuditinC (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's [APB's)] Ethical Standards for Auditors.

Scope of the audit of the financial statements an iudit 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 cauJed 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 uaiq"ut"ty disclosed; the reasonableness of significant accourrting estimate-s made by the trustees; and the overail presentation of the financial statements. In addition, we read all the financial and non- financial inf6rmation in the Report of the Council to identify material inconsistencies with the audited financial statements. 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: r give a true and fair view of the state of the charitable company's affairs as at 3r March zorz, and of its i-ncoming resources and application of resources, including its income and expenditure, for the year then ended;

. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (applicable to smaller entities); and

. have been prepared in accordance with the requirements of the Companies Act zoo6.

Page 5 INDEPENDENT AUDITORS'REPORT TO THE TRUSTEES OF THE DERBY & SANDIACRE CANAL TRUST LIMITED continued

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act zorr requires us to report to you if, in our opinion:

. the information given in the Report of the Council is inconsistent in any material respect with the financial statements; or

. the charitable company has not kept adequate accounting records; or

. the financial statements are not in agreement with the accounting records and returns; or

. we have not received all the information and explanations we require for our audit.

GregoryWhiting uditor

For and on behalfof: Smith Cooper LLP Chartered Accountants and Statutory Auditor zLace Market Square Nottingham NGr rPB

Dated: 17 December 2or2

Page 6 THE DERBY & SANDIACRE CANAL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2012

INCOME AND EXPENDITURE Note UnresEicted Resficted Total Total Funds funds funds funds 2o'.2 2()11 EE EE

Incorning resources

Donations and grants 8,26o 8,26o 5,835 Membership 6,t29 6,t29 5,o66 Contract work 908 9oB Bz5 ciftAid 345 345 Charities Trust 6 6t9

Total incorning resources t5,648 t5,648 17,745

Resources expended

Direct charitable expenditure :

Work groups 8,5oo

Other expenditure:

Culvertfunding nB n8 2Sl Management and administration of the Charity \,77o r,770 545

Total resources expended r,888 r,BB8 9,296

Net incoming resources/ (resources errpended) for the year t3,760 t3,76o 2,449

Balances brought forward at l April 2011 6,t6o 6,t6o 3,71t

Balances carried forward at 31 March 2012 L9,920 lg,g2o 6,16o

There were no acquisitions or discontinued activities during the above two financial years.

PageT THE DERBY & SANDIACRB CANALTRUST LIMITED

BAI-ANCE SHEETAT Sl MARCH 2orz 20t2 20ll Note t Lt

FIXEDASSETS Tangible fixed assets 3O,OOO 3o,268

CURRENT ASSETS/(LIABILITIES) Debtors 5 1,O2O 2,o88 Cash at bank and in hand 4,grs 553

5,935 2,64t CREDITORS Amounts falling due within one year (8,srs) (rg,z+9)

NET CURRENT LIABILITIES ( z,SBo) (r6,6oB)

27,42o t3,66o CREDITORS Amounts falling due after more than one year (7,soo) (7,5oo)

19,920 6,t6o

INCOME FUNDS Restricted Unrestricted t9,920 6,t6o

19,92o 6,t6o

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime under the Companies Act zoo6 and with the Financial Reporting Standard for Smaller Entities (effective April zoo8).

statements were approved by the Council on t7 Decernber zorz

Member of the Council

Page 8 THE DERBY & SANDIACRE CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 3l MARCH 2orz

ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepired in accordance with the Statement of Recommended Practice (SORP), "Accounting and nepo.ting by Charities" published in zoo5 and applicable accounting standards. Exemption has been taken from preparing a cash flow statement on the grounds that the Company qualifies as a small Company. Fund accounting Income funds are unrestricted funds which are available for use at the discretion of the Council in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost ofraising and administering such funds are charged against the specific fund. Incoming resources All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be qualified with reasonable accuracy. Income comprises membership funds, donations, grants and interest, contract work. Tangible fixed assets Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: Office equipment - 25"/o reducing balance During the year ended 3r March 2oo4 a decision was taken to stop depreciating the culvert.

Land acquired by the Trust by purchase or gift is shown at cost net of any grants or donations receivedind written off in the year of acquisition. Furthermore, the net cost of any restoration work on the canal track and related structures is also written off in the year in which it is incurred. Where structures are built or purchased which will have a significant value to the restoration scheme, the cost of those assets is capitalised and written down over the expected life ofthe asset. RESOURCES EXPENDED

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The net incoming resources are stated after chargingl(crediting) the following : 2012 2011 t L

Salaries Auditors' remuneration g2; Bso rrB Interest payable "u: Trustees' expenses Depreciation t? Loss on disposal offixed assets ,Og

No employees received emoluments as defined for taxation purposes in excess of €6o,ooo in the year.

Page 9 THE DERBY & SANDIACRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2oP Continued

3 TAXATION

The Company is a registered charity and as such no taxation is payable.

4 TANGIBLE FIXED ASSETS Wilmorton Plant & Office Culyqt machinery equipment Total E- E f_ Cost At r April zorr 5O,OOO tz,6z6_ 8+6 69,472 Additions Disposals (8+6) (8+6)

At 3r March zorz 5O,OOO tz,6z6 62,626 Depreciation At r April zorr 2O,OOO tz,6z6_ S7B gg,2o4 Charge for the year Eliminated on Disposal (sz8) (sz8)

At 3r March zorz 2O,OOO tz,6z6 gz,6z6

Nethookvalue At 3r March zorz 3O,OOO 3O,OOO

At 3r March zorr 3O,OOO 268 3o,z6B

The Trust has entered into an agreement with Sustrans, as follows :-

a) To lease to Sustrans a five metre strip of land along the fuIl length of the Trust's landholding at Draycott (Railtrack Flood Alleviation Scheme) for a term of 99 years for the purposes of Sustrans constructing and maintaining a multi-user trail.

b) For the Trust to assist Sustrans to purchase former canal land from Draycott to , in the name of, and using funds provided by Sustrans to an agreed maximum value. Sustrans covenants to sell back to the Trust all the land acquired for 5o% of the original purchase price, subject to a leaseback arrangement, enabling Sustrans to maintain a multi-user trail.

5 DEBTORS 2012 20tl E t"

GiftAidtax 69o 345 Prepayments 330 343 VAT t,40o

1rO2O z,o8B

Page 10 THE DERBY & SANDIACRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FORTHE YEAR ENDED Sl MARCH 2orz Continued

6 CREDITORS: Amounts falling due within one year 2012 2011 E L

Bankloan r,BB7 Trade creditors 3,OOO rr,z58 Accruals 1rO13 ',401 VAT Boz Other creditors 3,7oo 3,700

8,515 19,249

20t2 2011 t L

CREDITORS: Amounts falling due after more than one year Loan re Iand purchase 7,5oo 7,5oo

Included within the above are amounts falling due as follows:

Between two and five years

Loan re land purchase 7,5oo 7,500

The bank loan relates to the purchase of the Wilmorton culvert and one half is undervwitten by the Waterways Trust; the remainder personallyby some of the Council and members. The bank also holds a charge over the former canal land at Draycott owned by the Trust.

8 REI-ATED PARTYTRANSACTIONS

The Trust has use of offices rented under licence from Jeffery Jones Partnership at an annual cost of fNil. During the year the Trust paid Jeffery Jones Partnership fNil (zorr: fNil) in rent and L475 (zorr: €Nil) for the use of the Partnership's telephone. Mr S Jeffery, one of the Trust's Directors is a partner in Jeffery Jones Partnership.

Page I I THE DERBY & SANDIACRE CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2orz Continued

9 TNCOME FUNDS At r April At 3r March 2011 Income Expenditure 20t2 t t L L

General revenue 6,t6o 15,648 (r,888) t9,92o

Total unrestricted 6,t6o t5,648 (r.,B8B) 19,92O

TOTAL FUNDS 6,t6o l.5,648 (r,888) 19,92o

The restricted funds were received from various sources and are to be applied to the Swarkestone Project, Lock and for the Wilmorton Culvert.

ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2ot2 are represented by:

Restricted General funds funds Total L E E.

Tangible fixed assets 3O,OOO 3O,OOO Debtors 1rO2O 1rO2O Cash at bank 4,975 4,915 Current liabilities (8,srs) (B,srs) Long term liabilities (7,5oo) (7,soo)

Total net assets t9,920 19,92o

11 CAPITAL GUARANTEED

Every member undertakes to contribute to the assets of the Trust, in the event of the Trust being wound up, such sums as may be required not exceeding €r. At 3r March zotz there were six members.

Page 12 THE DERBY & SANDIACRE CANAL TRUST LIMTED

SUMMARY OF INCOME AND EXPENDITURE

2072 2011 t t INCOME

Donations 2,76o 560 Local Authority grants 5,500 5,275 Membership 6,t29 5,o66 Contract work 908 tr? ciftAid 345 Charities Trust 6 t9

t5,648 Lt,745 EXPENDITURE

Work group 8,5oo Administrative costs 433_ (r,143) Marketing costs 6oo Accountancy 40 Audit fee 920 Bso Interest payable rr8 257 Bank charges to? 109 Depreciation on office equipment 8g Loss on disposal of office equipment z68

(r,BBB) (g,zg6)

SURPLUS FORTHEYEAR t3,760 2,449

Page 13