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MAIDSTONE BOROUGH COUNCIL

COBTREE MANOR ESTATE COMMITTEE

10^TH JULY 2013

REPORT OF THE HEAD OF FINANCE & RESOURCES

1              ACCOUNTS 2012/13                                                                                                  

1.1        Issue for Decision                                                                                                          

1.1.1   To consider the un-audited Report and Financial Statement for the financial year 2012/13.                                                                                                         

1.2        Recommendation of the Head of Finance & Customer Services                                                                    

1.2.1   That the Committee notes the draft Report and Financial Statement for the financial year 2012/13.                                                                                                    

1.3        Reasons for Recommendation                                                                     

1.3.1   Attached at APPENDIX A are the draft Report and Financial Statements for the financial year 2012/13.                                                                                                      

1.3.2   The draft Report and Financial Statements have been produced in accordance with Charity Accounting Statement of Recommended Practice.                                                                     

1.3.3   Members have previously agreed to appoint King & Taylor as external auditors for 2012/13.                                                                                                           

1.4        Financial Statements 2012/13                                                          

1.4.1   The net deficit on the operation of the Golf Course and the Manor Park was £171,062, compared to a net surplus of £122,100 during 2011/12. However it should be noted that this includes capital expenditure of £296,742 in respect of Phase 1 of the Cobtree Manor Park Master Plan. Excluding the capital expenditure and investment income of £72,147 the operation of the golf course and the park made a net surplus of £53,538 for 2012/13. These figures are provisional as the accounts are still subject to external audit.                                                                                                              

1.4.2   The capital expenditure will be funded by making a withdrawal from the investment of the permanent endowment in Charifund, as agreed by the Charity Commission. This is shown as a creditor due to Maidstone Borough Council on the Balance Sheet as the expenditure was incurred by the Council on behalf of the Trust.                                                                                                                                      

1.4.3   There were no asset disposals during 2012/13, and none of the assets held were subject to revaluation. They are due to be revalued on 1^st April 2013.                                                                                                                          

1.4.4   It should be noted that the market value of the Charifund investment has risen significantly during 2012/13, to £1,526,936 at 31^st March 2013, compared to a value of £1,328,166 at 31^st March 2012. The purchase value of the investments held is £1,290,000, so the market value remains greater than this figure at the Balance Sheet date.             

1.5        Alternative Actions and Why Not Recommended                                          

1.5.1   None                                                                                                           

1.6        Impact on the Charity’s Objectives                                                              

1.6.1   The net surplus from the operations of the Golf Course and Manor Park will enable the Trust to move forward with their proposals to improve facilities on the Cobtree Manor Estate.                                                                                                                                                                      

1.7        Risk Management                                                                                                                     

1.7.1   The reporting of the final position for 2012/13 assists in the ongoing financial management of the Trust.                                                                                                                                                

1.8        Other Implications                                                                                                                                                                                       

1.9                  Financial Implications                                                                                  

1.9.1             The Accounts are a factual statement of the financial affairs of the Trust for 2012/13.