Trustees' Report and Accounts - Canal & River Trust

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Maintenance income and third party contributions £10.4m Other incoming resources £1.4m Donations £0.9m Incoming resources Defra grant funding £29.3m £122.1m Investment income £31.1m Boat licences and moorings £26.4m Utility income and water sales £17.4m Income from marinas operated by BWML £5.2m Investment property values by sector Office £240.1m Other £15.5m Residential £22m £468.7m Boating £25.9m Retail £46.1m Industrial £57m Growth £62.1m Trustees’ Report & Accounts 25
Finance Review Creation of the Trust The Canal & River Trust is a new company that was formed on 12 October 2011. It is a company limited by guarantee and became registered as a charity on 4 April 2012. The assets and undertaking of British Waterways (“BW”) in England and Wales were transferred to the Trust on 2 July 2012 by a Statutory Transfer Scheme under the Public Bodies Act 2012 (the “Transfer”). On that date the Trust commenced its charitable activities. Accordingly, the financial information in this report is for the nine month period to 31 March 2013. There are no comparative figures because this is the company’s first accounting period. The Trustees carried out a valuation exercise of all the assets and liabilities transferred from BW and accordingly the balance sheet of the Trust as at 2 July 2012 (see note 7 to the accounts) includes these items at the fair value. The assets and liabilities transferred from BW have been categorised between the Protected Endowment Fund, as determined by the Defra Grant Agreement, the General Fund and the Waterways Infrastructure Trust (“WIT”). As at 2 July 2012 the balances on these Funds was £532m for the Protected Endowment Fund, £27m for the General Fund and nil for the WIT. The Trustees have developed new accounting policies for the Trust which are stated on pages 51 to 55. These include an explanation of the purpose and use of the various Reserve Funds. This Review provides further explanation of the terms of the Protected Endowment and the funding relationship with Defra. The Waterways Infrastructure Trust includes all the waterway assets and structures that comprise the waterways, towpaths and associated structures. These are held by the Trust as trustee in a perpetual trust, the objects of which are to hold, operate and manage the waterway infrastructure property for public benefit and to use the income from the property to fund the cost of the trust objects. These WIT assets are categorised in the accounts as Heritage Assets, as defined under Financial Reporting Standard 30 Heritage Assets, and are excluded from the balance sheet on the basis that reliable cost or value information for the assets cannot be obtained. The waterways and the associated structures represent a financial burden to the Trust and have an annual maintenance and repair requirement that significantly exceeds the income arising from the waterway land, and also the Protected Endowment. Accordingly the economic value of the waterways is estimated to be substantially negative. By agreement with the trustees of the Waterways Pension Fund (“WPF”) the Trust became the Principal Employer of the WPF in July 2012 and in doing so became primarily responsible for the funding of that pension scheme. A Pension Funding Partnership structure (also known as an Asset Backed Contribution) was implemented as part of a package of measures that were required to reduce the deficit on the pension fund and to enhance the financial covenant strength of the Trust for the purposes of achieving agreement with the trustees of the WPF to release BW as the previous Principal Employer and accept the Trust in its place. The package of measures included a “last resort” guarantee from Defra limited to £125m and a special one-off cash contribution to the WPF of £25m from Defra. The financial strategy for the Trust, and its charitable activities, is summarised below and are linked with the newly created Investment Strategy. The objective of the financial strategy is to provide a secure and increasing flow of income to fund the maintenance, repair and enhancement of the waterways as well as to maintain a strong and liquid balance sheet. 26 Trustees’ Report & Accounts
Page 1 and 2: Trustees’ Report and Accounts For
Page 3 and 4: June: David Suchet, Timothy West, J
Page 5 and 6: Chairman’s Report Tony Hales CBE
Page 7 and 8: How does the Trust work? When we cr
Page 9 and 10: How have we done? People Canals and
Page 11 and 12: 8 Trustees’ Report & Accounts
Page 13 and 14: Case Study: Saving the Trent & Mers
Page 15 and 16: How have we done? Nature Below: Pon
Page 17 and 18: Case Study: Caring for our inner ci
Page 19 and 20: How have we done? History We care f
Page 21 and 22: Case Study: Celebrating Ilkeston’
Page 23 and 24: Glandŵr Cymru - the Canal & River
Page 25 and 26: Looking ahead Whilst we are develop
Page 27: Financial summary Resources expende
Page 31 and 32: Publication Data Measure Descriptio
Page 33 and 34: Transfer from British Waterways The
Page 35 and 36: The investment income derives from
Page 37 and 38: The significant movement in the per
Page 39 and 40: Waterways Pension Fund The Trust ha
Page 41 and 42: Risk management Safety of customers
Page 43 and 44: Governance structure of The Trust B
Page 45 and 46: Property and Investments Committee
Page 47 and 48: Control environment Information and
Page 49 and 50: Independent auditor’s report to t
Page 51 and 52: Consolidated income and expenditure
Page 53 and 54: Consolidated cash flow statement fo
Page 55 and 56: The amount of retained post acquisi
Page 57 and 58: Tangible fixed assets Expenditure o
Page 59 and 60: 2. Incoming Resources 3. Total reso
Page 61 and 62: 6. Taxation The Canal & River Trust
Page 63 and 64: 7. Transfer from British Waterways
Page 65 and 66: 9. Tangible fixed assets Group Oper
Page 67 and 68: 10. Heritage assets (continued) Mus
Page 69 and 70: 12. Investments (continued) Investm
Page 71 and 72: 16. Provisions for liabilities (con
Page 73 and 74: 17. Movement in funds (continued) G
Page 75 and 76: 19. Operating lease commitments 20.
Page 77 and 78: 20. Pension and other post-retireme
Page 79 and 80:
Glossary of financial, fund and wat
Page 81 and 82:
Trustees, Council, Waterways Partne
Page 83 and 84:
Council In addition to the members
Page 85 and 86:
Gifts & donations We are exceptiona
Page 87 and 88:
Executive Team Robin Evans, chief e
Page 89:
Canal & River Trust First Floor Nor
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Trustees' Report and Accounts - Canal & River Trust

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