Agenda item

Note: Councillor N Thomas left the Committee for the duration of items 8 and 9 having declared an interest.

The Committee received the Higginson Park Charity Annual Report and Financial Statements for 2022/23. Ms Sophie Payne, Service Director for Culture, Sport and Leisure presented the report, along with Mr Mark Preston, Deputy Section 151 Officer and Ms Fiorella Mugari, Head of Finance.

The Annual Report and the Financial Statements for the year ended 31 March 2023 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 Higginson Park Charity Accounts had been audited by Seymour Taylor Audit Limited. The total net worth of Higginson Park Charity had decreased by £140k from £7,430k in 2022 to £7,290k in 2023. This was mainly due to depreciation costs of £194k on the tangible fixed assets. Offset by net operating profits of £55k.

Ms Payne summarised the responsibilities of the Trust and highlighted that attendance levels at the leisure centre had increased to a slightly higher level than they had been pre-covid pandemic and that there had been a strong return from events income. The children’s play area had been refurbished and was well used and the Park had been awarded Green Flag status. The Committee noted that all income from the Trust was re-invested to cover operating costs and repairs maintenance.

During discussion, points raised included:

·       Inflation costs had been a challenge throughout the 2022/23 financial year and there remained some vacant office space in Court Garden House which was proving difficult to let. Rent reviews were being undertaken with existing tenants to provide some mitigation against this and officers were seeking to maximise income from the site whilst remaining sensitive to the local context. Work was also ongoing to address the VAT position moving forward.

·       The Committee was pleased to note that the Section 151 Officer was no longer signing the accounts off on behalf of the Trustee. The Committee received assurance that the Deputy S151 Officer, Mr Mark Preston, was independent from the Trust and had no management responsibilities which related to the Trust and thus there was satisfaction that his duties were unaligned to functions of the Trust.

·       The figure of £18k for car park costs was queried and it was confirmed that this related to the role the council took in maintaining the car park and covered enforcement and associated costs.

·       Members questioned how the market rate for income for events was calculated to ensure that value for money was achieved and the Council was not seen to be subsidising private ventures. The Committee was advised that the majority of events held at Higginson Park were community run, although there were exceptions such as the Christmas events in 2022. Benchmarking did take place with other local authorities in terms of income received from commercial operators. Further, it was highlighted that through hire agreements, event organisers had invested in the park, an example was given of returfing which benefitted all who use the park.

·       It was clarified that the £120k balance referred to under related party transactions on page 80 of the reports pack related to support costs linked to staff salaries. The Trust employs no staff directly, as such Buckinghamshire Council officer time was recharged to the Trust. It would be checked as to where this amount sat within the accounts and reported back to the Member who posed the question.

ACTION: Ms F Mugari to establish where the above related party transaction was covered within the accounts and report back to Councillor R Carington.

RESOLVED:

        i.            That the Higginson Park Charity audited Annual Report and Financial Statements for the year ended 31 March 2023 (Appendix 1) be reviewed and noted.

       ii.            That the Report to Management from Seymour Taylor (Appendix 2) be noted.

     iii.            That the Letter of Representation (Appendix 3) in the capacity of those charged with Governance be approved.

     iv.            That the Annual Report and Financial Statement for 2022/23 be approved.