Agenda item

To receive the financial statements for the Trust for 2012/13 (including the Annual Trustee’s Report and the Statement of Accounts) and the independent auditor’s opinion of the accounts.

The Committee received a report from the Director for Finance & Resources and Environment, Leisure & Residents Services presenting the financial statements for the Scrubs for 2012/13, including the independent auditor’s opinion.

Officers highlighted that the Scrubs’ income was less than its expenditure and that it was using its reserve funds, which were currently £399,403. The challenge for forthcoming years was therefore to increase the income generated by the Scrubs as in 2012/13 they made a loss of £171,652, meaning the current financial position could not be sustained for more than two years.

In response to a question, officers explained that the main asset of the Scrubs was the car park, which was valued in 2004 at £5million based on its income. The Trust’s other asset (the land) was given by Act of Parliament for the use of the inhabitants of London in perpetuity, and as such it is valued at £1 as the Trust does not have the power to dispose of it.

Members of the audience questioned the running costs of the Scrubs and argued that when the Council’s land management contract was let to Quadron the costs for the Trust rose significantly. Officers explained that the Quadron contract had three elements to it – management of the Trust’s land, parks in the Borough and the green spaces adjoining public housing. Previously all three elements were carried out by a direct labour force by the Council with inexact accounting that made it very difficult to ascertain how much each element cost. The contract was let competitively on an open market and the tender with the lowest running costs was selected. It was acknowledged that there had not been a separate specification in the contract for the Trust’s land and the other parks, but this did not mean that one element was funding the other. The Chair recognised that running costs were a valid concern and explained that as a new Committee, it would be looking at all expenditure very carefully and would seek any opportunities to negotiate a better deal.

Members of the public also voiced their concerns at proposals to build a viaduct over land to the north of the Scrubs as part of plans for a Crossrail / High Speed 2 rail hub at Old Oak Common. It was argued that whilst the need for development was recognised, the plans would have a severely detrimental impact on an important breeding ground for birds and that the Scrubs would suffer from the increased pedestrian traffic. It was noted that the Friends had already collected 2,500 signatures in opposition to the plans. The Chairman explained that there were no concrete plans yet released and that the Committee would await any firm proposals before commenting, but assured the Friends that any plans would be assessed robustly for their impact on the Scrubs. It was proposed and agreed that the Chairman would write to Transport for London reminding them that the Trust should be consulted as early on as possible and separately from the Council.

The Chairman also confirmed that the options for new Trustees or co-opted members of the Committee were being explored with legal advisors so that the implications for personal Trustee liability could be fully established before a decision was made. It remained the intention to listen to the Friends, users and local residents and to give the public a voice in deciding how the Scrubs are managed.

RESOLVED –

i)          That the content of the Independent Auditor’s Report to the Trustees of Wormwood Scrubs Charitable Trust stating that:

·        the financial statements give a true and fair view of the state of the charity’s affairs as at 31 March 2013;

·        have been properly prepared in accordance with UK GAAP; and

·        have been properly prepared in accordance with the requirements of the Charities Act 2011

be noted;

ii)         That the management representation letter (appendix 3) be approved;

iii)        That the Wormwood Scrubs Charitable Trust’s 2012/13 audited Statement of Accounts and Trustee’s report (Appendices 1 and 2) be approved;

iv)        That the delegation of authority to the Director for Finance & Resources, Environment, Leisure & Residents Services for the approval of the audited 2012/13 Statement of Accounts and Trustee’s report in the event of auditor changes subsequent to this Committee meeting be approved;

v)         That the 2013/14 contribution to the running costs of the Linford Christie stadium up to a maximum of £110,000 be approved; and

vi)        That the contents of the annual risk assessment (appendix 4) be approved.