Issue - meetings

The Senior Finance Manager (Client) introduced his report summarising the financial position of the Cobtree Manor Estate as at 31 December 2021. The report covered the Golf Course, Kent Life, the Manor Park and residential properties. The report also included details of the proposed budgets for 2022/23 and an update on Members’ request that a review be undertaken of the investment of the Charity’s permanent endowment with Charifund, including alternative investment options and the possible use of permanent endowment funds to repay the balance of the money borrowed from the Borough Council for the car park improvement works.

Financial Position

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

·  Following feedback from Members at the last meeting, the summary table had been redesigned to highlight more clearly whether variances were positive or negative.

·  The position as at 31 December 2021 was a surplus of £23,167 for the year to date.

·  Budgets had been reallocated to cover some of the previously reported overspends, but the overall budget had not changed with a surplus of £49,660 still forecast.  The £20,000 budget for Covid recovery had now been reallocated to the Golf Course to be used for a feasibility study.  The reallocations meant that at present there were no new significant budget variances.

It was suggested and agreed that in response to rising energy costs, consideration be given to the installation of renewables at the Cobtree Manor Estate.

Budgets 2022/23

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

·  The general approach to setting the budgets for 2022/23 was to increase running costs by inflation (2%) where applicable;increase contract income in line with the agreed schedules; update insurance costs in line with estimated premium increases; and update recharges from the Borough Council following a review of the services provided.

·  In overall terms the projected surplus from operational activities was budgeted to be £74,970 compared to £79,310 for 2021/22.  After allowing for investment income and the car park construction cost repayments, the overall net surplus would be £45,320.

In response to questions by Members, the Senior Finance Manager (Client) said that he would look further into the reasons for the increase in premises insurance for Kent Life, including whether any claims had been made.

Investment Options

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

·  At the last meeting, Members requested a review of the investment of the Charity’s permanent endowment with Charifund, including alternative investment options.

·  The current value of the investment with Charifund was £890,740, compared to the figure of £860,945 reported to the last meeting.  The value of the investment in December 2019 was £930,938.

·  Charifund was a specialist investment fund aimed specifically at the charity sector.  The fund aimed to provide an annual yield above that available from the FTSE All-Share Index; an income stream that increased every year; and a level of capital growth, net of the Ongoing Charge Figure, that is higher than inflation over any ten-year period, as measured by the UK Retail Prices Index.  There  ...  view the full minutes text for item 59