Agenda item

This report presents the Trust’s Annual Trustee’s Report which includes the draft 2018/19 financial accounts.

Stephen Hollingworth, Advisor to the Trust provided a summary of the Trustee’s Report and an overview of the year. It was noted that the correct value of the in-year surplus was £226,945. The Trust’s land included the Linford Christie Athletics Stadium, Pony Centre, three-bedroom cottage and the single storey parks depot, all of which were valued at £1 in total. It also included the car park valued at £5,000,000 as at 31^st March 2018. The main source of income was achieved through the use of the car parks that append Wormwood Scrubs and private car park income from the licence to Hammersmith Hospital Trust. Exceptional income was also generated from the Kensington Aldridge Academy and this remained stable. In addition, the main source of resources expended were payments in respect of grounds maintenance.

Stephen Waley-Cohen reported the lack of presence of idverde staff, particularly during the weekends to monitor dog walkers. He felt that this needed to be reviewed and better managed.  

Chris Harris, Advisor to the Trust provided an overview of the Statement of Accounts 2018/19 noting that the Trust’s balance sheet was broadly stable. The Trust achieved net incoming resources of £226,945. The out-turn represented an improvement on the budgeted position of £207,591.

Stephen Waley-Cohen expressed his concerns around the increase in the Auditors fees compared to the previous Auditors, especially as the accounts had been yet been completed by Grant Thornton.

Members enquired why there had been a delay in the submission of the final accounts. The Auditors explained that they were appointed in November 2019. This delay was due to the high degree of staff churn of the previous auditors and as a result this deferred the assurance process.

Chris Harris explained that the accounts needed to be submitted to the Charity Commission by the end of the week. If the accounts were submitted later, there would be no financial penalties, but the submission would show as having been submitted after the deadline.

Members noted their disappointment around the late appointment of the Auditors, given that the Committee had made the decision to appoint Grant Thornton at the June meeting.

The Auditors provided an overview, noting that the following key areas were being addressed:

-        Further clarification needed to be provided around the ownership of the land. Chris Harris had drafted a paper on this.

-        Evidence was requested on the valuation of the car park so this could be assessed. This was also submitted.

-        Auditors were working to establish how the reserves for the Trust could be represented to remain compliant with the Charity Law

-        Advisors to the Trust noted that there were no indicators of impairment.

-        Cash in bank figure should be treated as a debtor.

The Auditors explained that they had hoped to resolve the above in the next few days and a final finding report would be submitted to the Council.

Members explained that in principle they were happy to approve the Statement of Accounts and Trustee’s report, as majority of the concerns related to technical matters. Members agreed that the management representation letter and 2018/19 financial accounts should be circulated to the Committee, once these were approved by the Auditors.

RESOLVED

1.     The Committee noted the contents of the annual risk assessment

2.       The Committee agreed to delegate authority to the Assistant Director Leisure, Sport & Culture, Stephen Hollingworth in consultation with the Chair of the Committee, Councillor Wesley Harcourt to approve the audited 2018/19 Financial Accounts, and the management representation letter.