1. Accounting Policies
1.1. Accounting Convention
The financial statements are prepared under the historical cost convention modified to include the revaluation of certain fixed assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2005) and the Charities Statement of Recommended Practice (SORP) and applicable accounting standards.
1.2 Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are those funds held for a specific purpose upon which restrictions have been imposed by the donor.
The endowment fund represents those assets that must be held permanently by the charity.
1.3 Incoming Resources
All incoming resources are included within the SOFA when the charity is legally entitled to the income and the amount can be reasonably quantified.
All grants and voluntary income are accounted for gross when receivable as long as they are capable of financial measurement.
1.4 Resources Expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs relate to more than one functional cost category, they have been split on an appropriate estimated basis.
Governance Costs are those associated with the governance arrangements which relate to the general running of the charity.
Support costs (those which do not produce or constitute the output of the charity) are allocated directly to the relevant charitable activity.
1.5 Tangible Fixed Assets and Depreciation
Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:
· Land - Nil
· Leasehold properties - Nil
Land and buildings are re-valued on a five yearly cycle. No depreciation has been provided on the buildings as this is considered immaterial due to the estimated useful life and the level of residual value.
Impairment would be provided if necessary. Impairment reviews will be carried out when there are any indicators of impairment.
1.6 Investments
Fixed asset investments are stated at market value. Provision is made for any permanent diminution in value.
2. Resources Arising
The total incoming resources of the charity for the year have been derived from its principal activity wholly undertaken in the UK.
3. Analysis of Resources Expended
Resources expended include the following: -
|
|
2013 |
2012 |
|
|
£ |
£ |
|
Auditors’ Remuneration – audit services |
5,000 |
4,320 |
a) Costs of activities in furtherance of charity's objective
|
|
|
Unrestricted |
Restricted |
Total |
Total |
|
|
|
Funds |
Funds |
2013 |
2012 |
|
|
|
£ |
£ |
£ |
£ |
|
Staff costs (see note 5) |
- |
25,327 |
25,327 |
30,088 |
|
|
Grounds maintenance |
|
81,065 |
9,805 |
90,870 |
79,607 |
|
Capital Expenditure |
|
296,746 |
- |
296,746 |
- |
|
Utilities |
|
45,773 |
- |
45,773 |
57,639 |
|
Property repairs |
|
32,582 |
- |
32,582 |
20,726 |
|
|
|
456,166 |
35,132 |
491,298 |
186,060 |
b) Support costs included within the cost of activities
|
|
|
Unrestricted |
Restricted |
Total |
Total |
|
|
|
Funds |
Funds |
2013 |
2012 |
|
|
|
£ |
£ |
£ |
£ |
|
Staff costs |
|
- |
25,327 |
25,327 |
30,088 |
|
Grounds maintenance |
|
- |
9,805 |
9,805 |
28,561 |
|
Utilities |
|
45,773 |
- |
45,773 |
25,458 |
|
|
|
45,773 |
35,132 |
80,905 |
84,107 |
c) Governance Costs
|
|
|
Unrestricted |
Restricted |
Total |
Total |
|
|
|
Funds |
Funds |
2013 |
2012 |
|
|
|
£ |
£ |
£ |
£ |
|
Human resources |
|
- |
1,032 |
1,032 |
1,144 |
|
Democratic services |
|
- |
- |
- |
2,853 |
|
Legal costs |
|
3,568 |
4,588 |
8,156 |
4,660 |
|
Financial advice |
|
1,881 |
5,170 |
7,051 |
6,774 |
|
Audit and accountancy |
|
4,320 |
- |
4,320 |
4,320 |
|
|
|
9,769 |
10,790 |
20,559 |
19,751 |
4. Trustees' Remuneration
No Trustee received either remuneration or out of pocket expenses during the year.
There were no employees of the Charity.
5. Staff Costs
Number of Employees
The average number of employees during the year was:
|
|
2013 |
2012 |
2011 |
|
Manor Park Grounds Maintenance |
1 |
1 |
0 |
|
Park Ranger |
1 |
1 |
1 |
|
|
2 |
2 |
4 |
There were no higher paid employees.
The above staff are employed by Maidstone Borough Council, the corporate trustee of the Charity (see note 11).
6. Tangible Fixed Assets
|
|
Long Leasehold Land & Buildings |
Total |
|
|
£ |
£ |
|
Cost or Valuation |
|
|
|
At 1st April 2012 |
1,436,141 |
1,436,141 |
|
Revaluations |
0 |
0 |
|
At 31st March 2013 |
1,436,141 |
1,436,141 |
|
|
|
|
|
Net Book Values |
|
|
|
At 31st March 2013 |
1,436,141 |
1,436,141 |
|
At 31st March 2012 |
1,436,141 |
1,436,141 |
|
|
|
|
The closing net book value includes assets used for:
|
|
2013 |
2012 |
|
|
£ |
£ |
|
Direct Charitable Purposes |
1,436,141 |
1,436,141 |
The property is held under a 999 year lease which is due to expire in 2970.
The fixed assets are used solely for direct charitable purposes and form part of the permanent endowment of the Charity.
The golf course is revalued by Maidstone Borough Council on a five yearly cycle based on market value with the remaining properties being revalued by Maidstone Borough Council on a five year cycle based on market value subject to existing tenancies. The next valuation is due in April 2013.
The most recent valuations included in the accounts are as set out below: -
· Cobtree Manor Golf Course
(Including clubhouse, messroom/garage) April 2008
· Garden Lodge/Garden Cottage April 2008
· 2 Stream Cottages April 2008
· 3 Stream Cottages April 2008
· 4 Stream Cottages April 2008
Historical Cost Information
|
|
2013 |
2012 |
|
|
£ |
£ |
|
Leasehold Land & Buildings |
940,688 |
940,688 |
7. Fixed Asset Investments
|
|
Listed Investments |
Total |
|
|
£ |
£ |
|
|
|
|
|
Market Value at 1st April 2012 |
1,328,166 |
1,328,166 |
|
Additions |
|
|
|
Revaluations |
198,770 |
198,770 |
|
Market Value at 31st March 2013 |
1,526,936 |
1,526,936 |
|
|
|
|
|
Net Book Values |
|
|
|
At 31st March 2013 |
1,526,936 |
1,526,936 |
|
|
|
|
|
At 31st March 2012 |
1,328,166 |
1,328,166 |
|
|
|
|
|
Fixed Asset Investments |
2013 |
2012 |
|
|
£ |
£ |
|
Market Valuation of listed investments |
1,526,936 |
1,328,166 |
|
Historical cost information |
1,290,000 |
1,290,000 |
Breakdown of historical cost information:
|
|
2013 |
2012 |
|
|
£ |
£ |
|
|
|
|
|
Endowment funds |
1,290,000 |
1,290,000 |
|
|
1,290,000 |
1,290,000 |
8. Creditors: Amounts Falling Due Within One Year
|
|
Unrestricted Funds |
Endowment Funds |
2013 Total |
2012 Total |
|
|
£ |
£ |
£ |
£ |
|
Other creditors – Maidstone BC |
296,746 |
- |
296,746 |
- |
|
Accruals & Deferred Income |
5,000 |
- |
5,000 |
4,320 |
|
|
301,746 |
- |
301,764 |
4,320 |
9. Reserves
|
|
Restricted Funds |
Unrestricted Funds |
Revaluation Reserve |
Permanent Endowment |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
|
At 1st April 2012 |
- |
103,184 |
495,453 |
2,265,550 |
2,864,187 |
|
Revaluation of property |
- |
- |
- |
- |
- |
|
Net incoming resources |
- |
(171,062) |
- |
- |
(171,062) |
|
Increase/(Decrease) in value of investments |
- |
- |
- |
198,770 |
198,770 |
|
At 31st March 2013 |
- |
(67,878) |
495,453 |
2,464,320 |
2,891,895 |
Unrestricted Funds
These comprise of funds that the trustees are free to use in accordance with the charitable objects.
Restricted Funds
These are funds that have been given for particular purposes and projects. The restricted fund relates to:
- The Will Trust Fund, the income from which is used to maintain the rural park. The assets of this fund are held by Cobtree Charity Trust Limited, a separate entity.
Revaluation Reserve
The revaluation reserve represents the amounts set aside on revaluation of the land and buildings that are held on trust to be retained for the benefit of the Charity as a capital fund.
Permanent Endowment
The endowment fund represents those assets that must be held permanently by the Charity. Income arising on the endowment fund can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains and losses arising on the investments form part of the fund. The assets of the fund are set out below:
Permanent Endowment Assets
|
|
2013 |
2012 |
|
|
£ |
£ |
|
Long Leasehold Land & Buildings |
1,436,141 |
1,436,141 |
|
Investments at Market Value (Note 6) |
1,526,936 |
1,328,166 |
|
|
2,963,077 |
2,764,307 |
10. Capital Commitments
Details of capital commitments at the accounting date are as follows:
|
|
2013 |
2012 |
|
|
£ |
£ |
|
Authorised, but not contracted as at 31st March 2013 |
768,254 |
1,065,000 |
The Charity has approved a Master Plan for the enhancement of the Cobtree Manor Park. The works will be carried out in three phases, with the anticipated completion date of May 2013 for the first two phases:
- Phase 1: Play Area
- Phase 2: Parks works
- Phase 3: Visitor Centre/Cafe works
The Capital Commitment will be financed by the release of £1,065,000 from the endowment fund, which was secured on 17th May 2012, by Order of the Charity Commission.
The Commission directs the Trustee to replace the sum withdrawn by setting aside for 30 years thirtieth part of the sum spent.
11. Related Party Transactions
During the year, transactions with related parties are as follows: -
|
|
£ |
|
Receipts |
|
|
The Cobtree Charity Trust Limited |
45,922 |
|
|
|
|
Payments |
|
|
Maidstone Borough Council – Governance & Support Costs |
101,464 |
|
|
|
The Maidstone Borough Council is the Corporate Trustee of the Charity. In addition the Council itself owns part of the land upon which the golf course is built. The accounting arrangements between the Council and the Trust are that the Council is responsible for all receipts and payments for both the golf course and the Manor Park. At the end of each financial year the total net operating surplus or deficit of the Manor Park is transferred to the Trust accounts. For the golf course 7/9ths of the total net operating surplus or deficit is transferred to the Trust accounts, reflecting the split of land ownership. The remaining 2/9ths are shown in the accounts of the Council.
The Council employs the Park Ranger at the Manor Park and a Cobtree Officer (within the Governance & Support costs balance above - see note 5). The posts exist solely for the benefit of the Charity and the cost of their employment is shown in the Charity accounts under the arrangements specified above.
12. Controlling Interest
The Charity is under the control of the Corporate Trustee Maidstone Borough Council.