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Annual Report and Financial Statements THE DERBY & SANDIACRE 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 Nottingham 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: Derby City Council - Mr R Salmon Derbyshire County Council - CllrW S Major South Derbyshire 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 Long Eaton 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 Midlands 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;
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