The Committee considered the report of Mr Paul Holland, Senior Finance Manager (Client) which summarised the current financial position of the Estate as at 28^th February 2019.

Mr Holland highlighted that:-

·  The summary position as at 28^th February 2019 returned a positive variance of £36,000.

·  There were no issues to report in regard to Cobtree Golf Course, Cobtree Manor Park or Kent Life.

·  Capital costs of £25,000 had been incurred for additional works and project management costs for the car park resurfacing works.

·  There was potential to minimise the VAT on recharges and a report would be brought to the next meeting.

·  The implementation for the financial management system had been delayed due to staff absence but would be brought in for 1^st June 2019, with all transactions being transferred to it from the 1^st April 2019.

·  The recharges, as set out in Appendix 1 to the report, would be revisited at year end.

In response to questions from Members, Mr Holland advised that:-

·  He would speak to the Auditors about putting money aside in a separate fund to use when the car park required works.

·  The Charity Commission had already provided funding for the Visitor Centre but it was quite a long process.

·  Recharges for Procurement and Property Services included the monitoring of the various contracts (Golf Course, Café and Visitor Centre and Kent Life).

·  The term under Controlled Running Costs for Other Income – Cobtree Charity Trust Ltd should be changed to ‘Income from the Will – Cobtree Charity Trust Ltd’.

The Chairman updated Members on the meeting he had with Mr John Owen, Finance Manager on VAT recharges.  He had advised that the Council had taken the decision not to include VAT on the income from the Kent Life and Golf Course.  Consequently VAT would be charged and not be recoverable on the outgoings.  However, Cobtree Park and the Visitor Centre were VAT registered and VAT was rechargeable on outgoings.  Most recharges should relate to Cobtree Park and VAT should be rechargeable.

It was noted that there would be a VAT charge on car parking income and rental on the Visitor Centre, against which the VAT on recharges could be offset. 

Mr Hext confirmed that the amount from the Charity Will was £40,663 this year.

The Committee expressed their thanks to Mr Holland for providing the detail on the recharges.

RESOLVED:  That

1.  The current financial position be noted.

2.  The budgets (including recharges from the Council to the Trust) for 2019/20 be agreed.

3.  The progress to date with the Service Level Agreement and the separate financial management system be noted.

Voting:  Unanimous