MAIDSTONE BOROUGH COUNCIL

COBTREE MANOR ESTATE COMMITTEE

10^TH JULY 2013

REPORT OF THE HEAD OF FINANCE & RESOURCES

1              FINANCIAL POSITION 2013/14                                                                                                  

1.1        Issue for Decision                                                                                                          

1.1.1   To consider the current financial position of the Golf Course and Manor Park as at 31^st May 2013.                                                                                                

1.2        Recommendation of the Head of Finance & Resources                                                    

1.2.1   That the current financial position as at 31^st May 2013 is noted.        

1.3        Reasons for Recommendation                                                                     

1.3.1   Attached at APPENDIX A is the current financial position, including the projected outturn as at 31^st May 2013. If any significant financial issues arise during June these will be reported verbally to the meeting.                                                                                             

1.3.2   The statement also includes details of capital expenditure, and total investments held.                                                                                                            

1.4         Current Financial Position                                                                                     

1.4.1   Both the Golf Course and the Manor Park are running within budget at 31^st May and at this stage there are no issues that need to be highlighted.                                                                                                 

1.5         Investments

1.5.1    The market value of the investments held with Charifund has continued to rise following the dip in value in the recent past. It is planned to make the first withdrawal to fund the Master Plan shortly so the value of the investments will fall as consequently will the level of investment income, but this has been taken into account when planning the funding of the Master Plan. The current value is shown in the table below.

1.6         Capital Expenditure                                                                                              

1.6.1    The budget for the Master Plan has now been agreed at £1.065m, to be funded by drawing down from the endowment funds invested with Charifund. To date there has been expenditure of £547,083 on Phase 1 works in respect of the play area, car park and other associated works, and funding to the value of £296,000 has just been drawn down from the endowment fund to cover the expenditure in the 2012/13 financial year.                                                                

1.7        Alternative Actions and Why Not Recommended                                          

1.7.1    The Committee could not receive updates during the year on the financial position, but this would not be consistent with good financial management.                                                                                                                                                                                     

1.8        Impact on the Charity’s Objectives                                                              

1.8.1    The net surplus on the activities of the Golf Course and Manor Park are to be used to further the long term aims and objectives of the Trust, particularly the agreed Master Plan for the development of the Manor Park.                                                                                                                

1.9        Risk Management                                                                                                                     

1.9.1    Good financial management allows more informed decisions to be made regarding the ongoing activities of the Trust.                                                                                                                                       

1.10    Other Implications                                                                                                                                                                                       

1.11              Financial Implications                                                                                  

Financial Implications are detailed in the report above.