Issue - meetings

Accounts and Management Letter 2015/16

Meeting: 26/01/2017 - Cobtree Manor Estate Charity Committee (Item 31)

31 Accounts 2015/16 pdf icon PDF 61 KB

Additional documents:

Minutes:

The Committee considered the report of the Director of Finance and Business Improvement setting out the audited Report and Financial Statements for the year ended 31 March 2016 for approval prior to submission to the Charity Commission by 31 January 2017.

 

It was noted that:

 

·  The audit had been undertaken by UHY Hacker Young, the appointed external auditors to the Charity, who had indicated that they intended to issue an unmodified audit opinion.

 

·  No major issues had arisen regarding the accounts following the audit.  A number of minor amendments had been made to the draft accounts that were submitted for audit and there had also been a small number of unadjusted misstatements.  None of these had had any impact upon the financial resources available to the Charity.

 

·  The new Visitor Centre/Café was revalued following its completion.  Whilst construction costs were £0.40m, the valuation was £0.25m.  The reason for the reduction in value was that it was based on an appropriate rent that an occupier would pay to operate a café in that particular location.

 

·  A new going concern accounting policy had been included in the financial statements for the year ended 31 March 2016 to reflect the sum of £0.58m due to the Borough Council and the fact that the Estate operated at a deficit in 2015/16 which had reduced available sums in the bank account.

 

·  The total funds of the Charity as shown on the Statement of Financial Activities and the Balance Sheet had reduced from £4.97m to £4.48m which was mainly due to the use of funds held for the construction of the Visitor Centre/Café and for repairs to buildings at the Kent Life attraction.

 

·  There had been a significant increase in income arising from the opening of the Visitor Centre/Café and the introduction of car parking charges, but there had also been a significant rise in costs, particularly in staffing costs.

 

In response to questions by Members, the Senior Finance Manager (Client) explained that:

 

·  Note 9 to the financial statements (Intangible Fixed Assets) related to the purchase of the branding, logos and intellectual property (including the website domain name) pertaining to the Kent Life attraction from the previous operator.

 

·  The net current liabilities shown on the Balance Sheet reflected the construction of the Visitor Centre/Café and the drawing down of permanent endowment funds.

 

·  The seventh paragraph on page 6 of the Trustee’s Report and Financial Statements relating to the identification of funding for the preferred future development option for the Cobtree Manor Park had been deleted as it had been superseded.

 

·  Interest due to the Charity in respect of the permanent endowment funds invested with Charifund was included as part of the unrestricted income.  The permanent endowment funds which had been used to implement the master plan for the Cobtree Manor Park with the permission of the Charity Commission would gradually be re-paid.

 

RESOLVED:  That the Annual Report and Financial Statements for the financial year 2015/16 be approved for submission to the Charity Commission.