Issue - meetings

Cobtree Manor Estate Financial Position

Meeting: 05/11/2020 - Cobtree Manor Estate Charity Committee (Item 130)

130 Cobtree Manor Estate Financial Position pdf icon PDF 65 KB

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The Senior Finance Manager (Client) introduced his report summarising the financial position of the Cobtree Manor Estate as at 30 September 2020.  The report covered the performance of the Golf Course, Kent Life, Cobtree Manor Park (including the Café) and residential properties and highlighted the need for robust management and monitoring of the budget in response to the significant risks to the finances and operations of the Estate presented by the on-going COVID-19 situation.


The Senior Finance Manager (Client) advised the Committee that:


·  The key message at present was that there were no significant issues regarding running costs within the budget.  The Charity was underspent by approximately £48,000 although this did assume that it would receive all the expected contract income.  If the Charity were to receive all of that income, it would be looking at a breakeven position at the end of the year.


·  At present there was no outstanding income due from Kent Life; there were two outstanding invoices in respect of the Café (one relating to 2019/20); and, in terms of the Golf Course, an invoice had been sent to Mytime Active for the remainder of the Quarter 1 period and Quarter 2 would also be invoiced if an investigation by the Head of Finance into their annual finances concluded that no further contract relief was necessary.


·  Given the situation with contract income there were some concerns around the cashflow position.  This was being monitored closely and discussions were ongoing with the Director of Finance and Business Improvement to ensure that there were sufficient resources in place to meet ongoing commitments.


·  Members had requested that an updated Capital Programme be reported to this meeting of the Committee for consideration.  However, due to the uncertainty over income at present this had not been progressed.  It was considered that it would be sensible to wait until there was more certainty over income before bringing forward any proposed schemes.


·  The value of the Charity’s investment in Charifund had stabilised at approximately £680,000 compared to a value of £930,938 in January 2020.  It was hoped that the value of the investment would improve as the economy recovered.


In response to a question, the Senior Finance Manager (Client) advised the Committee that the introduction of negative interest rates could affect the return on the Charity’s investment in Charifund.  He hoped that the Investment Fund managers would provide guidance on the potential impact.


RESOLVED:  That the financial position of the Cobtree Manor Estate as at 30 September 2020, as set out in the report of the Senior Finance Manager (Client) and as updated at the meeting, be noted.