Agenda item

This report presents the Wormwood Scrubs Charitable Trust Annual Trustee’s Report which includes the draft 2019/20 financial accounts.

Chris Harris, Advisor to the Trust, presented the report and provided a brief overview of the key points arising from the Statement of Account and Trustee’s report. It was noted that the Trust delivered a surplus for the year of £147,205. This was the third surplus in recent years. This surplus was substantially underpinned by the additional income from the Kensington Aldridge occupation of the Scrubs. Further details on the financial performance could be found within the Statement of Accounts and Trustee’s report

Stuart McKay (MHA MacIntyre Hudson) provided a summary of the Audit Findings report for the year ended 31^st March 2020, noting the following key points:

• MHA MacIntyre Hudson remained independent to the Charitable Trust within the meaning of regulatory and professional requirements.
• An overview was provided on the key areas of audit focus which had been identified as part of the overall audit strategy and how they had been resolved.
• The audit work on the financial statements was now substantially complete and the Auditors anticipated issuing an unqualified audit opinion for the year ended 31^st  March 2020 for the Charity.
• The audit findings and the areas reviewed were outlined, these included audit misstatements, risk of fraud and error in the financial statements, accounting policies and accounting estimates.

The Chair asked if there was a penalty to the Trust for filing late. In response Chris Harris noted that there was no penalty and the Trust had dispensation to file until the end of March 2021.

Stephen Waley-Cohen (Co-opted member) asked for clarification to be provided on whether the Auditors were independent to the Trust and separate to the Council. In response Stuart McKay confirmed that MHA MacIntyre Hudson were appointed as independent Auditors, specifically for the Trust.

Miriam Shea (Co-opted member) noted that she would send Chris Harris some minor comments on the Annual report so that it could be updated.

Action – Miriam Shea

Miriam Shea (Co-opted member) asked for some clarification to be provided on the income received from other trading activities and from donations and grants. Stuart explained that the income from other trading activities related to the rent received from Kensington Aldridge Academy and income from donations and grants related to the HS2 environmental remediation works.

Stephen Waley-Cohen (Co-opted member) asked a question concerning the treatment of the rental income received in respect of the Pony Centre and whether this was credited to the Council or the Trust. In response Chris Harris noted that a formal response would be circulated to the Committee, once this matter had been investigated.

Action – Chris Harris

Resolved:

That the Committee:

-        Approved the Trustee’s Annual Report, attached as Appendix A.

-        Approved the 2019/20 financial accounts for Wormwood Scrubs Charitable Trust (“the Trust”), incorporated as part of the Annual Report (Appendix A).

-        Approved the management representation letter (attached as Appendix B).

-        Noted the contents of the annual risk assessment (contained in the Trustee’s report on page 25).

-        Noted that the accounts remained subject to change until the final audit opinion was issued and delegated authority to the Assistant Director Leisure, Sport & Culture, Stephen Hollingworth in consultation with the Chair of the Committee, to approve any changes to the 2019/20 Financial Accounts, Annual Report and the management representation letter required as part of the finalisation of the audit process.