Agenda item

The Committee considered a report which contained the draft Annual Report and the Financial Statements for the year ended 31 March 2022. These had been prepared in accordance with the requirements of the Charities Act 2011 and had adopted the provisions of Accounting and Reporting by Charities Statement of Recommended Practice and Financial Reporting Standards. The accounts had been audited by Seymour Taylor Audit Limited. Ms Sophie Payne, Service Director for Culture, Sport and Leisure and Ms Fiorella Mugari, Head of Finance for Communities attended to present the update.

The total net worth of Higginson Park Charity had increased by £202k to £7,430k in 2022. This was mainly due to increased valuation of property resulting in unrealised gains of £287k, offset by the net operating loss of £85k (after allowing for depreciation costs of £191k on the tangible fixed assets) – in comparison with a 269k net operating loss in 2020/21 (£190k depreciation costs). Net operating losses were significantly lower in 2021/22 because of increased operational income due to lifting of Covid 19 restrictions, which enabled a wider range of activities to resume, plus one-off income of £105k from the Government’s Support Scheme relating to losses incurred in 2020/21.

There was no management fee income contribution from Places for People Leisure to the Trust during 2021/22 due to the ongoing COVID-related recovery of leisure (with restrictions on indoor leisure continuing in the initial months of the year), but this management fee income had started to return during the 2022/23 financial year.

Key points raised during discussion included:

·    2021/22 had very much been a year of recovery, particularly for the leisure facilities which were gradually re-opened to customers. There had been a strong return of events during the summer period and a good level of car parking income generated.

·    One commercial tenant had entered administration and the process of marketing the vacant site had commenced.

·    Funds had been secured to replace a failed piece of equipment in the play area.

·    It was queried whether income was received from moorings on the Thames and Members were advised that income was received and collected through the Places for People contract. Officers held monthly meetings to assess the details of leases and various sources of incomes. One service improvement being explored was to automate the collection of mooring income using the RingGo provider.

·    It was clarified that the annual maintenance contract was part of the wider grounds contract for the Wycombe area and those costs were recharged to the Trust.

·    A Member asked for further detail on the significant findings from the audit and the Committee heard that there was nothing to note in respect of revenue recognition and management override; it had previously been requested for property valuations to be sent direct to the auditors, however this had not happened again in 2021/22, efforts would be made to ensure this happened for the 2022/23 financial year; for charitable expenditure it was agreed that invoices recharged from the Council were required to be maintained and this would happen for the 2022/23 financial year; and lastly the charity had set up its own accounting system which should be up and running during the course of this financial year and a separate bank account was now in place. The account was linked to the Council’s accountancy system and transactions were being processed through the system. It was confirmed that the issue of the charity not having its own bank account had been picked up during the previous year’s audit, although due to Covid there had been delays in the application process at that time

RESOLVED:

1.     That the audit progress and findings report from Seymour Taylor (Appendix 2) be noted.

2.      That the Letter of Representation (Appendix 3) be approved.

3.      That the Annual Report and Financial Statement for 2021/22 be approved.