NOTES TO THE ACCOUNTS

1.        Format of Accounts and Accounting Policies

a.        Basis of accounts: These Accounts have been prepared in accordance with the Charity Commission's publication "Accounting and Reporting by Charities - Statement of Recommended Practice" (SORP 2000) and accounting standards, the Companies Act and the historic cost basis of accounting, except for investments and the Museum Collection, which have been included at revalued amounts. The accounts are prepared on an income and expenditure basis.

b.       Donations, legacies and subscriptions: These items of income, including life subscriptions, are taken into account in full in the year of receipt.    No allowance is made for the undistributed part of any legacies due.

c.        Netted off expenses and related income: Where sufficient information is available the netting off of expenses and the related income has been eliminated.

d.       Stocks: Stocks of unsold goods are valued at the lower of cost or realisable value.

e.        Investments: Investments are valued at market value, except as described in Notes 2 and 3.

f.         Gains/losses on investments: Gains and losses are recognised in the year they arise.   Unrealised gains or losses are added to or deducted from the Fund to which the investment relates.

g.       Grants: Liabilities arising from grant commitments made by the Society are recognised by creating a provision pending completion of Funding Agreements or fulfilment of conditions at which point the obligation becomes binding.

h.       Cash Flow Statement: The Society has taken advantage of Sections 246 to 249 of the Companies Act 1985 in deciding not to prepare a Cash Flow Statement.

2.        The holding of shares in Paddle Steamer Kingswear Castle Trust Limited, the owner of P.S. Kingswear Castle, represents a controlling interest.   55 shares (out of an authorised 100) are held in equal lots by five nominees as representatives of and on behalf of the Society.   The shares are shown in the Accounts at their nominal value, as shareholders in the Trust cannot benefit from their holdings, as it is constituted as a charity.

3.        The holding of shares in Waverley Steam Navigation Company Limited (WSN), the owner of P.S. Waverley, represents 29% of shares issued.   The shares are shown in the Accounts at their nominal value, as shareholders in the Company cannot benefit from their holdings, as it is constituted as a charity.

4.        The Streatfield Bequest is available for the general purposes of the Society.  

5.        The Restricted Funds comprise the Restoration and Preservation Fund, which holds funds received for or allocated to P.S. Waverley and P.S. Kingswear Castle and the Evans Bequest, which is reserved for P.S. Kingswear Castle.

6.        Museum Collection: The Society owns a collection of relics relating to paddle steamers.   It was valued at market value at 31 December 2001 and is now depreciated over 20 years on a straight line basis.   Movements in 2002 may be summarised as follows:

7.        Commitments: At 31 December 2002 £148,606 had been committed to WSN towards the cost of the Completion Phase of the Heritage Rebuild under the terms of a Funding Agreement.   This balance is after committing an additional £35,000 and advancing £86,394 to WSN.

8.        Loan to Loch Lomond Steamship Company (LLSC): The Society made an interest free 20 year loan of  £20,000 to LLSC.   The loan will be converted to a non-repayable grant, subject to LLSC raising an equal sum of donations.  By 31 December 2002 £14,700 had been converted.

9.        Related Party Transactions:  The Society is related to the following companies as there are reciprocal arrangements to nominate trustees.

a.        Waverley Steam Navigation Co Ltd (WSN)

i)         The Society has contracted to grant to WSN £235,000 in 2002 and 2003 towards the cost of the Completion Phase of the Waverley Heritage Rebuild.  In 2002 the Society made grants totalling £86,394 under this agreement.

ii)       The Society has offered WSN an interest free loan of up to £40,000 repayable in five equal instalments commencing on 31 October 2004.  No advances had been made at 31 December 2002.

iii)      The Society offered WSN an interest free loan of £75,000 between March and July 2002 but the offer was not taken up.

b.       Paddle Steam Kingswear Castle Trust Ltd (PSKCTL)

i)         The Society applied £21,991 of the Evans Bequest to renewing the port sponson of P.S. Kingswear Castle.

ii)       The Society made miscellaneous grants totalling £85 to PSKCTL.

c.        Loch Lomond Steamship Co (LLSC) - The Society made an interest free 20 year loan of  £20,000 to LLSC.   The loan will be converted to a non-repayable grant, subject to LLSC raising an equal sum of donations.

10.     Trustee Remuneration:   No Trustee received any remuneration during the year (2001 - Nil).  2 persons connected with a Trustee received remuneration of £260 in total (2001 - £258).

11.     Trustee Expenses:  10 trustees received reimbursements of fares totalling £1,911 (2001 - £2,077).

12.     Staff Costs and Emoluments:  Nil (2001 - Nil).

13.     Cost of Reporting Accountant and Other Financial Services:  Adey Fitzgerald and Walker received £517 for reporting accountant services (2001 - £517) and provided no other services to the Society (2001 - Nil).

INDEPENDENT ACCOUNTANTS REPORT TO THE TRUSTEES OF PADDLE STEAMER PRESERVATION SOCIETY

We report on the accounts for the Paddle Steamer Preservation Society for the year ended 31 December 2002.

RESPECTIVE RESPONSIBILITIES

As the charity’s trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of section 43(2) of the Charities Act 1993 does not apply. It is our responsibility to state, on the basis of’ procedures specified in the General Directions given by the Charity Commissioners under section 43 (7)(b) of the Act, whether any particular matters have come to our attention

BASIS OF INDEPENDENT ACCOUNTANTS REPORT

Our examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items of disclosures in the accounts, and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently we do not express an audit opinion on the view given by the accounts.

REPORTING ACCOUNTANTS STATEMENTS

In connection with our examination, no matter has come to our attention:

(1)        which gives us reasonable cause to believe that in any material respect the requirements

(i)         to keep accounting records in accordance with section 41 of the Act: and

(ii)        to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act

have not been met: or

(2)        to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Adey Fitzgerald & Walker       

26 High Street

Barry

South Glamorgan

CF62 7EB

Date: 1 May 2003

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