FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY Annual Report and Accounts for the Year Ended 31 March 2021 FOLKESTONE PARKS AND PLEASURE GROUND8 CHARrrY ANNUAL REPORT FOR ThE YEAR ENDED 31 MARCH 2021 CONTEP Pag•(J) Annual ReF#Jrt Accountlng and Reportlng Re8pDn81bllllle8 Indapendent Audltorf8 Rgport 10-13 Statsment of Flnandal Actlvttl88 14 Balance Sheet 15 Statement of Cash Flows 18 Notss to the Accourrt8 17-27 FOLKESTONE PARK8 AND PLEASURE GROUND8 CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 INTRODUCTION 1.1 Folke5tone & Hythe Dlstrlct CourKII. a8 Corporate Trustea, presents the annual report, together wlth tha Ilnanclal statements, for the year ended 31 March 2021 for the Folkestone Parks and Pleasure Ground8 Charity (Ih6 Charw). 1.2 The Charftys annual report and accounts have b88n pr8P8red In accordance wlth the ChaTftl88 Act 2011 and Accountlng arKI R8POrtlng by Charltle8'. Ststement of RecommerKled Pracflc8 appllcable to charlti88 preparing thelr accxjunts In accordance wrth Flnandal Reporting Starmlards appllcable In UK and Republlc of Ireland (FRS 102) °ChartUe8 SORP (FRS102f tog8th8r ￿ the Charws govern1￿ document. REFERENCE AND ADMINI8TrATIVE INFORMATION Namg of Chartty Folke8ton& Parks and Pleasure Grounds Charit 1006288 Folkestone & H he Dlstrlct Councll Cllr D VKJnk (Leader) Cllr Mr8 J Holllng8be8 (Deputy Leader) Cllr J Colller Cllr R Fleld Cllr D Godfrey Cllr S Peall Cllr T Prater Cllr L Whybrow Cllr D Wlmbla Head of Pald se￿Ce- Susan Prf8St Flnanclal Advl8or to the Charlty - Ch8r IrelarKI Legal Adv180r to th8 Charfty - Amandeep Khroud Folk86tone & Hythe Dlstrfct Councll Cmc Centre, Castle Hlll Avenue Folk68tone, Kent CT20 2QY Folkostone & Hylhe D18trlct Councll hold balances on bahaff of thè Charlty. The Councll's banker8 are: Nalonal We8tmln6ter Bank Europa House, 49 Sandgate Road. Folkestone, CT20 1 RU Re 18tratlon Number Co orate Trustse Name8 of the Repr888ntatlv88 of the Tru8te8 Names of Chlef Offlcer8 Prfndpal Offke Prfnclpal Extamal Advl8or8 Bankers Audltor UHY Kent LLP Va UHY Hacker Young Thame8 Hou88 Roman Square Srtt1￿t￿UrnO. Kent ME10 4BJ Investment Managers Folke8toM & Hythe Dl8trlct Councll FOLKESTONE PARKS AND PLEASURE GROUNDS CHARrrY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT 3.1 Follo¥￿ng the 1974 local gov8mment reworgan18atlon, Folk88tone & Hythe D18tr1ct Councll 8UCCa8ded the Borough of Folkestone as Cory)orate Tnjslee for a number of areas of larKI In Folkestone. each a charlty In Its own rlght, Speclfically provlded as a park, plea8ufB ground or recreatlon ground forth8 use and enjoyment of the Inhabltants of th8 town arKI tt8 nelghbourt)ood. 3.2 The araas of land are: East Cllff and WaTh8n The Durlocks Lower Sandgats Road (Coa8ts1 Park) Radnor Park Morahall ReCrea￿n Ground Canterbury Road R8cr8atlon GrDufKI 3.3 Th8 Indlvldual GhartN88 all had Identlcal obJecllve8 and to Improve thelr 8dmlnlstratton a SUCGes8fv1 applicauon was made to the Charfty Comml88lon to combine them into one. 3,4 On 13 June 1991 the Folkestone Park8 arKI Pl888ure Grounds Charltywas 88tab118hed, by a Chartty Comm1881on schem8. for the provision of parks. pl8a8ure grounds or r8cr8aUon ground8 for the u88 and enJo￿ent of the Inhabltants of the former Borough of Folkest0￿ tho n81ghbourhood themf. 3.$ In aoxrdanc8 th tha ￿ns￿lUtIOn of Folk88tone & Hythe Dlsblct Councll th8 Coundl'8 cablnet carr188 Out Its Corporate Trustse functlon8. 3.6 Tha c8blnet con818ts of the leader who Is elected by the Councll, together ¥￿th at least t￿, but no more than nlne. coundlbrs appointed to the cablnet by the leader. The current cabinet18 shown at 2.4. CoundlkJr8 are r8qulr8d to Stand for eledlon by publlc every four years. 3.7 Day to day management of the Charlty Is delegated to chlef ofllcer8 In accx>rdance wlth the Councll's con8thrtlon. Th8 nams and d881waUon8 of thlef officers ar8 shob￿ at 3.8 Th8 Charlty18 managed on the 6wne basls as ts Coundl'8 own r8cr8atlon 8ervlco a￿1 18 8ubJect to the 8am8 codas and protoco18 8pedned In the Councll's con8tltsthn. 3.9 Rhk Marwgwnwrt The major risks to whlth th8 Chartty Is exwsed are managed wlthln Folke8tone & H￿h0 Dlstrlct CourKII'8 rfsk m8n8g8menl 8traW and pollcy. 3.10 It18 the overall re8ponslblllty of the cab5net to approve the Councll's rhk management pollcy and strategy. to revlew It on an annual ba818 arKI to promote a culture of rl8k managem6nt awarenesg throughout the Councll. Induding the Charity. The cablnet18 al80 r88pon8lble for deslgnallng a counclllor to act as 'rl8k management champlon, to 8UPPOrt the integration of risk management Into the culture of the Councll. 3.11 The Coundl's constitutlon 8peclfies the risk management respon8lbllltte8 of th8 head of pald 8ervlce, the ￿rpOrate director6 arKI 8ervlce managers. FOLKE8TONE PARKS AND PLEASURE GROUNDS CHARrrY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 3.12 R18k8 ar8 Idenllned, assessed arKI ￿ntrOl8 88tabllshed throughout the year. The key controls u88d by the Council arKI the Charlty include: formal wrltten pollde8, codes and protocols: 88tabllshed organi8atlonal structure and Iln88 of r8portlng', lear authorisation and approval levels; comprehen8tva stratsglc plannlng. budg8tlng and budgetary control., effectlve In8urnnce (x>v8r arnl vottlng procedur88: regular tr81nlng and guldance; malntsnanc8 of rfsk reg18tsrs; fornial agendas. reports and tem8 of r8fer8nco for mo8tlng8, projec*8 8tc. 3.13 Through the Coundl'8 rlsk managemerrt proce8888 88tsbllshed for the Chartty the cablnet, repr888ntlng the Corporate Trustse, Is sat18ffl￿ that any Identlfled maJor rfsks have been adequatety mltlgated where n￿Ossary. It Is recognlsad that Systems can only provlde reasonable but Th)t ab801ute a88uranc8 that major ri8k6 have been ad8quataly managed. OBJECTIVES AND ACTivmES 4.1 ObJ•ctiv• of the Charlty The CharW8 objecove. as set out In th8 Charty Commlsslon scheme, Is the provlslon of parks, pleasure grounds or r8Greatlon grounds for the use and enJoym8nt of th8 Inhabltants of the area of the fomier Borough of FolkeBtone arKI Its n8lghbourlThd. 4.2 Th8 parks and recraallon ground8 conslst of the follovAng." East Cliff and Warren The Durlock8 Lower Sandgats Road Radnor Park Moreh811 R8cr9aOon Ground Canterbury Road Recreatk)n GrourKI 4.3 The repr08entatlve8 of th8 Corporate Trustee (x)nfinn that they have refeTf8d to the guidance contslned In the Charity Comrnission'8 general guidance on publlc benefft when ￿ewIng the alms and obJectlve8 of the Charlty arKI in plannlng ftrture actmtles. 4.4 Alms and Int•nd•d Impact The prfnclpal aim of the Charfty Is to ensur8 the malntenance of tho park8 and recre8tSon grounds, IndLKllng publlc convenlenc88 on chawlty land, In ac(x)rdance wlth agreed SF)ecificatlon8 80 that the resldents of Folkestone and S8ndgat8 can contlnue to usa them for1818ure pur8utt8 and to gnloy the b￿0￿8 of open 8pac88 in an urban area. 4.5 Malntenance Includes gr888 and h&Jge arttlng. Bhrub and mse beds. herbaceous border8, annual beddlng dl8plays, tree stock. pond8 and a88oclaknJ 8tnK*ures such a8 fence8. wa118, path8, Gar park6 and publlc o)nvenlences. 4.6 The Charlty also provld88 SP)rts fadlttl88 at East Cllff (bow18. golf. puttlng and tsnn18) and allow8 attractlons to take placa on the sltes, partlcularly Radnor Park (e.g. anr￿1 donkey derby. amu80ments and boot falrs). FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 4.7 The Success of the rnastal park on tha Lmr Sandgate Road contlnues after 20 year8 of If8 openlng In 2000. The park Is monitored by CCTV arKI ha8 a ward8n. It h88 an approximats area of 25 hectar88 deslgned Into three zones. 4.8 The fomwl zone comprlses plne avenues. fomial plantlng and hard land8caplng. Th8 fun zone contains th8 largest free play area In the south east a8 w811 as a zlgzag path arKI amphitheatre. The ¥￿Id zono enwurag88 wlldllfe through 88nsltlve habitat management. 4.9 object1￿* for 2020121 The maln objectlve for 2020121 was to ensure that the malntsnance of the charftable land ￿ntInUed to the agreed 8tandard8. 4.10 Th18 Ilnk8 to Folke6ton8 & Hythe'8 8trat•Jlc objecdve 'Appearanc8 Matters. of Fxovldlng an attraGtlve clean envlronment. 4.11 Kay actlons for 2020r21 were the retentlon of the Green Flag 8(mdltatlon natlonal recognition for the Co88tal Park and Radr￿r ParK en8urlng 8 summer events prograrnme In the Coa8ts1 Park and Radrrt)r Park and progresslng wlth the agr88d project to refu￿lSh arKI replace beach huts at Marlne Walk to brlng ￿ beach huts bad Into owratlon after thay ￿re brought back In-house In 2017118. REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR 2020121 5.1 Radnor Park The park contlnu88 to be w)pular wlth local re8klents and 18 b8lrKJ well used and ha6 relaIn￿ Its Green Flag Award for the fourth year runnlng. New fr88 of charge 8POrt8 faclllUe8 Indudlro an 11 v 11 football pltth, 400m rumlng track and a rounders p￿ch were marked out In 2020121. A 8et of new goal posts ￿re commls8lon•J and Instsll•J. Tw> 0)Mm￿lty not11￿ board 8Iw8 wer8 comm1881oned s￿1 Installed. Several dllapldated paths In the Lowèr Radnor Parf( area were r08urfacod and made 5.2 Coastal Park Tho Coa8tal Park contknu08 to be the key d88tlnatlon play 8lte for the Dl8trlct retslnl tt8 Green Flag st￿8 for the 14th o)n8ecutlve year. It h88 a180 been the 7th 8ucce8slve ypar that the Coastal pa￿ has received the Trip Adv180r'CerUficat8 of Excell8nc8' and Its place In the 'Hall of F8m8' was r6tslned ￿th the Coa8tal Park belng th8 number one attractlon to visit in Folkestone. Due to the pandemlc, the free events progrdmme wa8 reduced to a mlnlmum ho￿V6r Iho four free famlty rockw)Ilng $8881ons %wr8 8tlll popular and well atterKled. Waste mnagament of the slte wa8 Improved by an Installatlon of thre8 pemwnent tlmb8r compounds PKJU8lng (In totsl) 6 x 1100L wheelle bln8 wlth 3 unts belng do8lgnated to g8n8ral wasts and 3 to r8trycllng. FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 A totsl ban of BBQS wa8 anr#)unced In June 2020 resuRlng In a large decrease In Iltterlng. vandallsrn arKJ pathlng188u88 In th8 par The park has seen many IMprO￿nents over the vAth work8 to the amphltheatra, renewal of the LED Street Ilgming throughout th8 park and repairs to the play area. 2021122 ￿11 See the ageing plrats shlp vKeck play equlpm8nt replaced aThl major refvrbl8hment of the play twr& 5.3 East Cllff Sport8 The 8POrt8 facllltle8 contlnue to be well used by the publlc arxl 8th0018 allke and the inGome generated ha8 81ighty Incr8a88d. Grant furmllng of £20k was recelved from KCC to look at scoplng a new d88tlnatlon play area arKI assoclated facilities. EnglneerlNJ advlce wa8 commissioned to und8rntand the dlff posltron into the next 100 year8. Draft drawing6 were comm188loned and a full rAAbllc eon8ultation will take place In late 2021122. 5.4 Beach Chal8ts~ Marlne Walk refurbl8hm8nt of the Beath Chalets and local Infrastrurture abng Marfno Walk b8kM Coastal ParK agreed by the FPPG Trustees In October 2019. was delayed due to the Covld-19 pand8mlc th wjrk commencfng In June 2020 and crjmpletlng h February 2021. Further fundlng wa8 requlred to complete tha project du8 to addluonal o)8ts of unldentffied asb88tos removal required a8 part of the demolition and ￿ncrets K*rk8 and 81gnlficant Increa888 in material costs due to the parKlemlc. The flnal cost of the project wa8 £5TI.000 agalnst a budget of £500,000. The Councll agreed an addltlonal financlal contrfbutlon of £77,000 whlch ￿￿11 be repald over the orlglnal ten year perlod from surpluses genèrated from rental Inrnme. Worklng togother wlth Cre8tfve Folkestong, partlcularty the Artl8t Rana Begum. the Charlty has 8ucce8sfully dellver8d a colourful 9cheme that ha8 recelvad p081tlve natlonal coverage. The Chalets have be8n vl8wed p081tlvely by the local cornmunlty and are beiNJ enjoyed by the new tenarrts with 100% 0(￿Parry. FINANCIAL REVIEW 2020121 8.1 The chartty made an op8ratlNJ1088 of £31,000 In 2020121, largely due to a reductlon In Inv88trnent incowo resulllng from the dela￿ refurblshment of the beath chalets which completed In late 2020121. 82 The not revenue eXp￿mIltUre In 2020121 was £528,6W bolng £27,340 le89 than the latsst budget of £555,940. Net revenue expendMur818 defined as net axperKltture on unr8strlcted funds exdudlng depreclatlon and18 met by a contrlbutlon from Folke8ton6 & Hythe Dlstrlct Councll, as 11 Is the Intentlon for the charlty to achleve a breakeven position each year. See Nota 7 for the analysis of net Income. FOLKE8TONE PARKS AND PLEASURE GROUNDS CHARrrY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 6.3 The net revenue expendlhjre supported the obJectlve6 of the Charlty by flnanclng the maintenance of charitable opan 8pac88, the provlsion of 8POrt8 faciliti88 at East Cllff and the management of the Coastal Park. 8.4 The net eXPe￿Ilture ofthè Chatywas Ilnan(8d by Folke8lone & Hyth8 Dl8tslct c0￿ClI. 8.5 R•s•rv•8 Pollcy The da￿t￿daY fInan￿ ofth8 Charfty are admIr￿s￿red wlthln tho finandal 3￿m3 of the Coundl, ￿lch a180 flnances the net ts)8t of the Charfty on an ongolng ba818. A8 a r88uR there are no 8eparat8 balancos repfesentlng resources set askle for Charlty purpo888 8uch as general cnntingenci88 and cash fk)w management. 8.8 The Charftys 98neral furKI ha8 a 8urplu8 of £13,000 at the end of 2020121. In the past the Councll has not contrtbuted fully to the provlslon for depreclatlon In recognluon of the 81gnificant contrlbution to the re80urce8 of the Chartty from local tsxpay8r3. In local authDrlty ac¢xunts depreciauon ha8 a neutral Impact on the amounts requlred to be ralsed from local taxatlon. A dec161on was tsken by the Truste88 In 2018119 to Lrtlll88 the profit from the beach hut senrtce to make a contrlbutlon to r88erves to reduce th8 defiGIt. There was no profft from thls servlc8 In 2020121 88 the beach huts undergolng refurt>l8hment and replacement a8 part of the approved capltal programme, but It18 anlclpated that the 88Nlc8 wlll generate a 8urplu8 from 2021122 conlrfbute to the charlty'8 ro8erve8. 8.7 Inv•8trn•nt Pollcy and Perfornianc• Al the 8tsrt of 2020121 Folkestone & Hythe Dlstrfct CounGII held £118,434 on behall of the Charlty. Thal sum repre8erted the brought foThYard balance of past proceeds of the 8818 of charltable assets and is managed by the Councll as part of ts over811 Inv8stThnt portfollo. The Councll also held £32,095 on behalf of the Chartty r8pr88entlng the balance of exlernal donatK)ns recelved for the Radnor Park Improvements. The Coundl's Investment activity durlng 2020121 complled wlth Its approved Inve8knent Strategy for the year. Most Investments made were for up to a maxlmum of 12 month8 duration refiecllng an expectatlon that Intsr8St rat88 wlll eventually rf8e from thelr h18torlcally low base arKI a180 to take a cautious approath around the credlt rfsk of counterpartle8 avallable to Invest with. The Coundl a180 hag a stratsglc low terni inv88tmont In the CCLA Local Authorlty Propety FurKI. During 2020121, a grant of £20.000 was recelved from Kent County Councll (KCC) a8 a contrlbuuon towards vlablllty. con8ultatlon and ma8ter-plannlrvJ costs for a proposed East Cllff redev8loprMnt proJecL The balanc8 at tha end of 2020r21 of £170,529 remaln8 wllh the Councll. 8.8 Overall a retum of approximatsly 0.1% wa8 achlev&d on th8 CharW8 Inve8tmen( eamkng Intere8t of £181 for 2020121. 8.9 In Iln8 ￿ Folkestone & Hythe D18tr1ct C￿nd1'S proje￿ retum on Investments, It18 anticipated thatthe 2021122 Investment retum ￿11 be Slmllarto that athl8ved In 2020121 based on tho 8um Inve8t8d. 8.10 Th6 Charfty al80 h)Id8 llve prDpgrtJes (valued at £1.181.000) that are lea88d at ommarcial rents and are da8sad as investrnent a88ets. There has been a slgnlflcant Increase in the valuallon of Investment 888ets In 2020121 to reflect th8 redevelopment of beach huts at Marine Walk arKI the Increased revenue In(x)me th18 wlll generate. FOLKESTONE PARKS AND PL£ASURE GROUNDS CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 8.11 The CharW8 accounts showlng the financlal p8rfomiance for the year endlrKJ 31 March 2021 are set out on pages 14 to 27. They cons18t of the following: The Statsment of Financial Actlvltles whlch strK)W8 811 resourc88 made avallable to the Charfty and all exp8ndllure Incurred by It. The Balance Sheet - ￿1¢h 8ets out the flnandal p08ition of the Ch8rlty at th8 ypar end. It shows the balanc88 and r888rves at the Chartll8 d18posal and Its long term Indebtedne88, together vAth summarl8ed Infomiatlon on the fixed 8889ts held. The Statement of Ca8h FIOWB - ¥thlch show8 how the Chartty has used cash generated by Its aC￿vItIeS aThJ chang88 In cash and cash equlvalents h8ld by the Charlty. b) 8.12 Tho accounts are 8UPFKJrted by the Statement ￿Ar￿untIng Polld88 and varfous not88 to the accounts. +• 8.13 The charty flnl8h*J the year wlth a loss of £244,000 due to Ios888 arlslng on the revaluatlon of both Inve8bnent and tanglble fwl assets bringing the totsl re8erve8 to £4.595,000. Of these funds £2.804,000 are r8Strfcted and £119,000 are erKlowment funds. At the balance 8heet date £4,924,OLXI of the re88Nes ar8 repr888nted by fIx￿1 a888ts and could only be a￿Ssed by the 8a18 of th088 8888ts. cov1￿19 PANDEMIC 7.1 The coronavlru8 (c0￿d-19) outbreak wa8 dedared a global pandemlc by the World Health Organisalon on 11 March 2020 and on 23 March the govemment Imp08ed lockdovm on th8 whole popula￿On. reBtrlctlNJ all non-e888ntlal travel and ttjntsct wlth people outslde of th8 hom8 and d08ed alrrK)St all busln888es, v8nu88 and facllltle8. Th18 ha8 had a conslderabl8 impact on the Councll and in tum the Charlty as many bu8ines8e8 In the dlstrlct Were forced to d088 which has S￿n￿Can1lY Impacted the Ioc81 e￿rK)mY arKI In tum Impact8 the Coundl'8 Ino)m8 8tre8m8. 7.2 The Impact on the Charlty wa8 not a8 81gnlflcant as flr8t antldpat&J. Car parklng In￿me wa8 largely unaffected a8 Folkestone & Hylhe Is a coastsl dlstrtct and many resldents and vlsltor8 travelled to local area8 wh118 natlonal travel re8trlctlon8 were Imp088d. Lelsur8 Income only Saw a Small reductlon as restrlctions ￿Te Ihled In tho Summer mnths and visttor numb8f8 Increased durlNd thi8 perlod. 7.3 Work on the Beach Hut scheme whlch was due to (¥)mmence In March 2020 wa8 delayed due to busln888 dosures and access r88triction8 and stsrted In June 2020. Thi8 delayed completion of the Inltlal 8tag8 of beach huts unlll February 2021 ￿th n8W lea8e8 being grdnted at the and of March 2021, therefore rn rental Income was r8ceivgd In 2020121. There were al80 r￿ malnt8nanc8 or finandng GoBts Incurred In 2020r21 as a result of the delayed project and 80 there wa6 no Impact on the net revewo expendlture of the Charity. 7.4 Whlle It18 difflcult to 88llmate th any certalnty the full extent of th8 8conomlG Impac on th8 Councll's financial posltlon and the Subsequent Impact on the Charlty for future year8, the nat 8xpendMJre of the Charlty continues to b8 financed by a (x)ntrlbutlon from the Coundl. FOLKESTONE PARK8 AND PLEASURE OROUNDS CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 FUTURE PLAN8 8.1 The Charlty I￿11 b8 con8lderfng enhanGlng a number of Its land and prop8rty assets wlth the Intsntlon of furtherlng the alms of the Charity arKI contlnues to Impruve the park8 and plea8ure grouThJ fadlltles for thè p8opI8 of Folkestono and tha surroundlng araas. 8.2 The Introductlon of r8cycllng facllltles acros8 all park8 and open 8pace8 18 current belw d18CU88ed a8 Part of the Coundl'8 now waste management cx)ntract. 8.3 Draft mastar-plannlng kn￿rk has c%)mmenced lo potsnllally create a d88tlnatlon play area arKI l818ur8 hub at Easl Cllff followlng approval of the Play Area Strategy 2020- 2030 whlch IdentifM the 8fte a8 a Prlorlty Play Area. Th1918 Stlll In the fonnaljve stages, m88tlng8 have taken place vAth a range of extemal Stake￿IderS to galn b￿1n lo the project. Plans wlll be pregented to Cablnet to gain approval for th8 project. AUDIT OF THE CHARIWS ACCOUNTS 9.1 UHY Hacker Young Chart8r8d Ac(x)￿tants have been appolnted to aLKIIt the 2020r21 arxounts in accordance with the Chaiilles Act 2011. 10. FURTHER INFORMATION 10.1 Further Infomiatlon atrx)Lrt Iho Charfty Gan ￿ obtaln8d from Susan Prle8t, He8d of Pald S8rvlc*. Folkestone & Hythe Dlstrict CounGII. ClvlG Centre, Ca8tle Hlll Avenue, Folk88tone, Kent CT20 2QY. (01303 852203) The Annual Report ft)r the year ended 31 March 2021 apprDved by the Cabln6t of Folkestone & Hytha Dlstrlct Councll, the Coryx)rate Tru8ts8, on 28 Aprll 2022 and slgned on Its behalf by. Slgned: Cllr DD Monk Chalrnian Folkg8tono Parks and Pl•asur• Grounds Charfty FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING AND REPORTING RESPON81BIUTIE8 Folkestone & Hythe Dlstrfct C0￿ClI as the Corwrate TN8tee of the Charlty18 r88ponslbl8 for preparlng a Tru8ts88' Annual Report and financlal statement8 kn accordance ￿ appllcable law and Unlted KlrWom Ac￿untIrwj Stsndards (United Klngdom Generally Accepted Ac¢￿UntIry Practlce). The law appllcabl6 to charities In England arKI Wal88 require8 Folk8Stone & H￿he D18trfct Coundl to prepare financial statements for each year whlch glve a true arKI falr vl8w of the State of affairs of the charlty and of the incoming resources and appliGatlon of re8ource8, of the charlty for that perlod. In praparfng th8 fln8ndal 8tatements. the repr88errtaUve8 of the Corpor8te Trustee are requlred to: • 8elect 8ultable accountlng pollcl88 and then apply them con818tently,' . observe the m8thod8 and prfnclpl88 In the applicable Charllles SORP: . make Judgements and esllmatss that are reasonable and prudent,. • stats whether appllcable accounting starKlards have been follow8d. subject to any materlal departure8 d18c108ed and explalned In the flnanclal Statsments: ' prepar8 the flnanclal statement8 on the goiry concem bath unl888 It 18 Inapproprlate to pr08ume that the charlty wlll conlknue In buslness. Folke8ton8 & Hyth8 Dlstslct Coundl as the Corporate Tru8te818 r08wnsltle for keepkng prop accountI￿a record8 that dlsd088 Ylth reasonable accuracy at any tlme the flnanclal p08ilion of the chaty and to enable them to ensure that the financlal statements ￿mplyw1th the Charttl88 Act 2011, the applicable Charltl88 (Accounts and Reports) R8gulallon8, and the provlslon8 of the Tru8t deed. They are 8180 respon8ible for safeguardlng the a888ts of the charfty and tsking raa80nable 8tep8 for the prevenuon and deten In otherJurf8dlctlons. We caffj that the flnanclal 8tatement8 on pages 14 to 27 have been prepared In acttJrdanr* wlth the account1￿ pollcl88 set out on pag08 17 to 19 and that It presents falrfy the flnandal position of the Folkestone P8rk8 and Pleasura Grounds Charity at 31 March 2021 and th8 Charitys incomlng arKI outgoing re80urces tor the year then 8nded. Slgn8d S*ned Dat8 26104122 Ch•ryl Ireland Cllr DD Chalrnian Folkegton• Parks and Pl•asur• Grounds Charfty Flnanclal Advl•or to Iho Folk••tono Parks and Ploasur• Ground8 Charlty FOLKESTONE PARKS AND PLEASURE GROUND8 CHARrrY INDEPENDENT AUDITOR'S REPORT FOR ThE YEAR ENDED 31 MARCH 2021 R•port of the Ind•pond•nt Audltor to th• M•mb•rn of Folkuton• Parks and Pha•ur• Grounds Charlty Oplnlon We have audited the ffinanclal statsmènts of Folkestone Parks and Pleasure Grounds Charty (Ihe '¢harW) for the year ended 31 March 2021 whlch compri8e the Ststement of Financlal Activities, the Balance gheet, th8 Statsment of ca8h flows and the related note8, InCI￿lIng a Summary of 81gnlfbcarrt aG¢ountlrKJ pollcl88. The flnanclal reportlng framework that has been applied In thelr preparation is applicable law and Unlted Klngdom Accountlng Standards. Including Flnandal Reportlng Standa￿1 102 The Financial Reportlng StandaTd applicable in the UK and Republlc of Irela￿1, (Unfted Klngdom Generally Accep￿1 Accountlro Pracoce). The flnancial 8tatsments have b8en prepared In accordance wtth AccountlTVJ and Reportlng by Charities prepariw thelr accounts In accordance wilh the Financlal Reportlng Standards appllcabl8 In the UK and Republlc of Ireland (FRS 102) In preferenc8 to the A¢￿untIng and Reportlng by Charlues.. Ststsm8nt of Recommended Practlc8188uwI on 1 Aprll 2005 whlch18 referred to In tho extant regulatsrn but ha8 been wilhdrawn. Th18 ha8 been done In orderfor the accounts to provld8 a tnje arKI falr ￿eW In accordanco wlth the Generalty Accep￿￿ Accountlng Practlce effeGUve for reportlng perfod8 beglnnlng on or after 1 January 2015. In our oplnlon th8 finandal ststarnents: glve a true and falr vlew of the State of the tharW8 affalrs as at 31 March 2021 and of Its Incomlng resources aThl application of resources for the year then ended; have been pn)p8rly prepared In acwrdance wlth Unlled Klngdom Generally Accepted AccountlrwJ Practlce; aNI have b88n prepared In accordance wlth the requlrem8nts of the Charlll88 AGI 2011. Bul• for oplnlon We corKlucted our audlt In ac(xJrdance wth Intematlonal Slandards on Audlllng (UK) (ISA8 (UK)) arKI applicable law. Our re8FyJnsibilitles urKler those stsndards are fijrther de8crfb8d in the ALKlltor8' r88pon81bllttles for the audlt of the flnanclal statement8 88clon of our report. We are Independent of the charity In accordance wlth the 8thlc81 requlrements that are relevant to our audit of the flnanclal statements In the United Kingdom, Ind￿lIr( the Flnanclal Reportlng Coundl'8 Ethical Standard, aNI we have fuffilled our other ethical rosponslbllltles In accordance wlth th88e requlrements. We b8118ve that th8 audlt evldence ￿ have obtalned Is 8ufflclent and apprDprlats to provlde a ba818 for our oplnlon. C¢)ncluslon• r•latlng to golng conc•rn In audltlng th8 flnandal statements, ￿ have concluded that the Tru8te88' U8e of the golng conc8m ba818 of accounllng In th8 preparatlon of th8 financial statements Is appro￿ats. Based on the work we have perforn￿d. we have not Identffied any rnalerial uncertalntk98 relating to events or condltlons that. indivtdualty or collectlvely. may ca8t signm(znt doubt on the tharftys abilty to contlnue as a golng conceTn for a period of atleast twelve month8 from when the flnanGlal stalements are author18ed for Issue. io FOLKESTONE PARKS AND PLEASURE GROUNDS CHARrrY INDEPENDEKf AUDITOR'S REPORT FOR THE YEAR ENDED 31 laARCH 2021 Our r88pon81bllltles the re8ponslbllttles of th8 Tru8te88 wtth respect to golng concem are descrfbed In th8 relevant 8ectlons of this report. Oth•r Inforniallon The 0th8r Inforn￿tIOn comprkn the Infomwllon Indudad In the Annual report other than the tlnanclal 8tat8ments and our AudltorB' report thereon. The Trustees are re6pon8lble for the other Infonnation contslned wlthln the Annual report. Our oplnlon on the financlal 8tatements d068 not coverthe otTr￿r infomiatlon and, except to the extent othervA8e 8xpIIGItIy 8tatsd In our report, we do not axpress any form of assurance ￿nclusion th8reon. Our responslbllity18 to read the other InfornMtk)n and. In dolng w), I￿nsIder whetherthe Othgr Irffomiatlon18 materfally Ino)nslstent with the flnancial statsments or our knowledge obtaln8d In the courne of the aud or otherwi8e appears to be matsrfally misstatsd. If we idenllfy such matorfal Incx)n8lstende8 or apparent material m188tstements, ￿ are required to detsrmlno whether thls glve8 rise to a materfal rn188tatsm8nt In the finandal 8tatsm8nt8 themselves. If, ba8ed on the work ￿ have performed, we conclude that th8r818 a malerlal mI￿latom8rrt of thls other Informatlon, ￿ are requlred to report that fact. We have nothlry lo report In thls regard. qatt•rn on whlch w• ar• r•qulrnd to r•port by •xc•pUon We have rrt)thlng to report In re8PeCt of the followlng matters ¥ther8 the Charitles (Accourrts and Re￿rts) Regulatk)ns 2008 rgqulre8 us to report to you If. In our oplnlon: th8 Infomwtlon glven In the Tru8tees' report18 knconslstent In any rnaterlal r88PeCt the fin8nclal Statements; or sufficient ac¢xJuntlng re￿1￿5 have not been kept,. or the flnanclal statements are not In agreement wlth the accountlng r8cord8 and r8tum8: or we hav8 not recdved all th8 Infom*tlon and 8xplanatlon8 ￿ requlre for our audlt. R•8pon8lbllltl•8 ol tr￿te•S As explained more fully In the Trustees, r08pon8lbllM88 Statemrt the Tru8tee8 are respon81ble for the preparatlon of the tlnancial statsments whlGh glve a and f81r vlew, arHI for such Intemal control as the Tru8tees detamlna 18 nace888ry to enable the preparation of financlal statement8 that are free f￿rn rnatertal mi68tatement. whether due to fraud or error. In prep8rlng the flnanclal Statsments, the Truste88 are re8pon81ble for asse881ng the chaiiV8 ablllty to contlnue as a golng concem, d18closlNJ, as 8pplicabl8, matters relatad to golng concem arKI uslng the golng concem basls of aC￿￿ntIng unle88 the Trustae8 either intend to Ilquklats the d)8rlty or to C8a8e operalon& or have no rea11811c attamallve bul to do 80. li FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2021 Audltors. mponslbllltl•s for th• audlt of th• flnanclal stat•m•r We have b88n appolnted as audllor under 8ectlon 144 of tho Charltles Act 2011 and report In ac￿rdanCe wlth th8 Ad and relevant reg￿at￿n8 made or havlng affect th8r8under. Our obJ8Ctlves are ta obtaln rea8onable assurance about %thether the flnanclal ststements as whole are free from materfal mlsstatement, whether due to fraud or grror, and to18sue an Audltors, report that Indudes our oplnlon. Rea8onablo as8urance Is a hlgh level of a88urance, but 18 not a guarantee that an audlt conducted In accordance wlth ISAS (UK) wlll alway8 detsLt a materfal mlsstatement vthen It exists. Ml68tstsments can arfse from fraud or error arKI are consldered material if, IrKllvldually or In the aggregate. they could reasonably be expected to In￿OnCe th8 8coTh)mlG dodsk+n8 of u8er8 taken on the ba818 of the88 fin￿da1 statements. Irregularltles, Indudlng fraLKI, are In8tanc88 of rK)n-conyllanc8 wlth la￿ arKI regulatkJn8. We deslgn procedures In line wlth our r88pon8lbllltle8. oullln8d above, to detect materfal mlsstatsments In r68pect of lThegularftles, Includlng fraud. The extent to whlch our procedure8 ar8 capable of detectlng Irregularltl88, Indudlng fraud18 detalled below; How tha audlt Cons￿er8d capable of dete(*lng lffegularltles, Includlng fraud Our approach to identlfylng and as8es8lng the rfsks of materfal ml8Statsment In respect of irregularftl88, Includlng fraud and non-compllanc8 wlth law6 and regulatlons. was as follows: w8 klendfied the laws and regulations applicable to the charfty through d18CU881ons wlth managemant, and from our comm8rclal knowEedge and experfence In the sector. we focused on speclfic laws and regulatlons which we considered may have a dlrect material effect on the a(￿Unts or the operatlon8 of the chartty, Includlng th8 Charftl88 Act 2011; we assessed the extent of compllancè ￿ the laws and regulatbns Identlfied atx)ve through maklng erquirieB of management and Inspectlng correspondence; and Identified laws arKI r8guiaUons were communlcated wlthln the audlt leam and the team r8malned alert to In8tsnce8 of non￿pIlanca throughout th8 audtt. We a86088ed th8 8U8ceptlblllty of the charfty8 accounts to materfal rn18statement. Indudlng obtalnlng understandlng how fraud mlght by: maklng enqulrles of management as to Nthere ttw ￿)nsIdered there wa8 8U8CePtlblllty to frdud. thelr knowl8dg6 of actual, su8pectsd and alleged fra￿1. and con8klerlng the Intemal controls In place to mltlgale rlsk8 of fraud and non-Gompllance wlth and ulathn8. To addre88 the rf8k of fraud through management blas and ov8rrlde of controls, ￿. perfomied analytical proc8dur98 to Id8ntlfy any unusual or unoxpected r8laknn8hlp8: tssled Journal entrfes lo klentify unusual transactsns; assess&l whether Judgements and a8sumption8 made In determlnlrvJ the accountlng estlmate8 set out In the accountlng po15cie8 were Indlcatlve Df wt8ntsl bla8; arKI Inve*ated the ratlonale behlnd 81gnMcant or unusual tran8acllon8. 12 **FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2021** In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading minutes of meetings of those charged with governance; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report. ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. ## **UHY Kent LLP** Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ Date: 27 April 2022 UHY Kent LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 13 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 £'ooo £'ooo £'ooo £￿00 £wo Incom• and Endty￿•nt8 from: DOna￿One for projects Charllable ActlvlU88 Investment Income (TK)ts 2) Contribution from Folkestone & Hylhe DC (note 3) Total 20 145 145 100 529 720 529 740 715 Exp•ndlturn on: Charflabl• Actlvftl•8 Oporatlon ot Park• and playground8 Employees (nots 4> Premises & Grounds (nots 5) Supplie8 and S8rvic88 Management and Support S8rvlc68 (rKJte 4) Govemance Co8ts (nots 8) Depreclalon Total 823 86 623 86 595 59 37 31 737 771 771 Galn81{L088e8) on Inve8kn8nt assets Galn81(L08s88) on Revaluatlon of Fixed Assets (197) (197) (18) {16) 299 t (Exp•ndltureylncom• {264) 20 (244) Transf•rn B•tw••n Fund• 51 (51) Not Mov•m•nts In Funth (213) (31) (244) 566 R•con¢lllatlon of Funds: Total fvnds brought foThyard Total fund• urrl•d forward 1,885 2,835 1.672 2.804 119 4839 4,273 119 4.595 4.839 14 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY BALANCE SHEET AS AT 31 MARCH 2021 2020121 £'ooo 2019120 rooo FIXED ASSETS (nots 8) Freehold Land and Bulldlng8 Flxture8, Fltting8 and Equipment 3.521 133 89 1,181 3,558 154 95 854 Investsnent A888ts (P￿pertIeS) A88ets under Con8tructbn Total Flx•d A88•ts CURRENT A88ET8 Debtors (nots 9) 235 235 181 181 Total Currnnt Au•ts UABILrriES Credltor8: due wlthln 1 year (note 11) N•t Curr•nt A•Mt• 195 178 Total Ags•ts L￿$ Curr•nt Llablllll•• 4842 Credltor8: du8 after r￿re than 1 yBar (note 12> 524 TOTAL NET A88ET8 THE FUND8 OF THE CHARrrY Endowment Fund Restrlcted Funda Capltal Grants R88grve Unrestrcted Fund8.' Revaluat¥)n R98erve Unr88trfcted General Fund TOTAL CHARrrY FUNDS (note 13) 119 119 2,804 1,659 13 1,872 13 Approved by th8 Cablnet of Folkestone & Who DIBtrlct Coundl, the Corporate Trustee, on 28 April 2022 and Slgned on rt3 behalf by: Slgned >G(L4- Cllr DD Monk Chalrman Folk•8tone Parks and Pl•asur• Grounds Charlty 15 FOLKE8TONE PARK8 AND PLEASURE GROUNDS CHARrrY NOTES TO THE AccouKfs FOR THE YEAR ENDED 31 MARCH 2021 2020121 2019120 rooo £No Ca•h Ilows from 0￿ratIng actMtI•8: N•t ca•h wovld•d byl(u8•d In) owratlng actlvltl•s (1￿ 15) 91 Cash flows from Invojtlng actlvltl•s: Dlvidends, Interest and r8nt8 from Investsn8nts Purchase of tanglble f￿ed assets Purchase of Investrnent Not cash (umd Inyprovld•d by Inv••tlng acllvltles (43) 521 475 Ca•h IkYw8 from Ilnanclng actlvltl••: Ca8h infiow8 from new boffowlng N•t ca•h provld•d by flnanclng actMII•• 521 521 Chang• In ca•h and cuh oqulval•nt8 In tho y•ar Cash and c88h equlvalents at tho t*glnnlng of the year (note 16) 181 243 Cash and ca•h •qulval•nts •1 th• end th• y•ar (n¢>t• 10) 235 An•lysl8 of Chang￿ In not debt: At 1 Aprfl Ca8hfi¢)vrn At 31 March 2020 2021 £'ooo £'ooo rooo Ca•h at bank In hand 181 235 Loans falllng dua aftar more than one year (3) (521) (524) N•t dobt 521 524 16 FOLKESTONE PARKS AND PLEASURE GROUND8 CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Statement of Accounllng Pollcl•8 Ba81s of th• Pr•parallon of Accounts The accounts (flnanclal statements) have been prepared In accordance wlth th8 Chariti88 SORP {FRS102), th8 Charltl88 Act 2011 and appllcable r8gulation8. The accounts have been prepared on a going concem ba818 and under the historlcal (xJ8t conventlon wlth Item8 recognl8ed at C08t or transactlon value unle88 Otharvlse Stated In the relevant note(8) to ttwe accounts. Tho chaiity wn8Otutes a pubNc b8nefft enuty a6 defined by FRS 102. The Tru8ts8 wnsiders that there are no matsrlal uncertalntles about the chaiity8 ablllty to contlnue 88 a golng concem. Whllo the full extent of the Covld-19 parKlemlG remalns uncertaln. the Charity continues to be flnanced ty a cx)ntrfbution from the Councll and regular ca8h fiow monltorlng and budget revl8w8 ar8 belng undertaken to 8UPPOrt the m￿liuM temi flnanclal posltlon and there are concam8 over the CourKII'8 ablllty to ntinue as a golng concem. Incom• and Eyndlturn The revenue and capltal accounts of the Charfty are malntalned on an accruals bas16. That Is, sums due to or from the Charlty are accounted for In the year to which they relate wheth6r or not the cash ha8 actually been recelved or pald In th8 year. Acunts arn 8ccnHI on an esllmate ba818 vA)8re actual flgur86 are not kno￿. Income16 recognl86d once the charlty ha8 8uffldent certalnty of recelpt and the amount of Income can be measured rellably. Llabllltles are recognlsed as expèndlture as 800n as there Is a 18gal or Gon6tructlv8 obllgatlon commlttlng the charity to that axpendlture, It Is probable that settlement ￿11 be requlred and the amount can be rneaSu￿I r8llabty. Irrocoverable VAT18 charged agaln8t the experKllture headlrYJ for whlch It wa8 Incurred. Grnnts and Contrlbulk>n• Revenue grants a￿1 contrlbutlons are matched wlth the expendlture to whlch they relats. Wh8r8 the a￿Ul5￿10n of a fixed a888t18 flnanced elther wholty or In part by a grant or other contrfbutK)n, the Charfty wlll rK)mially have entlUem8nt to the Incorning r860urca whan It Is recelvable. At th18 polnt the Income Is r8cognlsed In the Ststemerrt of Flnandal Actlvili88 arKI Is not daferred over th8 life of the asset. Grdnls and other contrlbulions are acwunted for on an accruals basis and recxJgn188d In the accountlng Statements when the condltlons for thelr recelpt have been complled wlth and there Is reasonabl8 assurance that the grant or ￿rrtrlbUt￿1n wlll be recelNvdd. Ov•rheads Thère 18 a recharge frDm the acu)unts of Folk88tone & Hyth8 Dl8trlct Councll. based on time allocalons, to refiect the CO8t of admln18tratlve and management 8UPPOrt for the Charlty. 17 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNfJ FOR THE YEAR ENDED 31 MARCH 2021 Stat•m•nt of ACCo￿￿1n9 Pollcl•• (corrtlnu•d) Flxed CapKalisakn All expendliure on the acqu181tkJn, crealon or enhancement of flxad a888ts 18 capltall8ed on an accruals basls In the accounts. Generalty expendthre of over £10,000 on f￿1 a889ts Is G8plta1188d. provlded that the flxed asset yleld8 benefftB to the Charlty and the service8 It provid88. for a perfod of more than one year, excludlng routlne repalrg and malntenance of fixed a868ts whlch 18 tharged dlr8Ctly to resources expended. Valuatkn? Freehold land and bulldlngs are Included In the b81ance 8h88t at tho lo*w of net current replacement cost or net realls8ble value In exlstlng use. Flxiurns, fftting8 and equlpment are Induded In ts balanc8 sheat at hlstorfcal co8L Investment assets {prop8rtle8 lea￿￿ at u)mm8rdal rert) are IrKILKled In the balan￿ Sheet at the lower of net Gurrent replac8mert cogt or n8t r8all8able value. Th1818 rKJrmally open market value. The surplu8e8 artslng on the Inltlal valuatlon of fixed a888ts have been credtted to revaluation r88eNe. Subsequent revaluations of fixed assets are planned at flve yearly intsrvals, although materlal changes to asset valuatkjns wlll be adjusted In the intsrfm perlod, as they occur. For example. a888ts ar8 revl8w*d annually for Impalrrnent b88. In 8co)rdance wlth th16 poIIGy the fixed a888ts were rn•valued a8 at 31 March 2021. Any as8ets acqulred underflnanc818a8es are al80 capltallsed In the ChaW8 accounts, togethar ￿ th8 Ilablllty to pay future rontal8. Deprnclatlon Depreclatlon18 provkled for on all flxed a888ts wlth a flnlte u8eful I￿. ￿lch can b8 determln8d at the tlme of acqu181tlon or revaluation. Depreclatlon18 b888d on the 888et value Induded In the balance 8heet. Tha strakdht Ilne mathod of calcUla￿OnI8 U8•J. D8predatlon18 not provlded for freehokl lar¥J or IrN88tment assets. D8precIa￿On rates for other tangibl8 a888ts are a8 follows: functional building8 21>35 years fixtures, fltting8 arKI equlpmorrt &10 years Infrastsuctura assets 20 years Flmnclal IMtrum•nts The charlty only entsrs Into baslc flnanclal In8trum8rrt8 that result In the racognttlon of financial assets and liabllltles Ilke trade and other accounts re￿1vable and payable, and loan balances with it6 parent entjty, Folkestone & H￿h6 Dlstrtct Councll. All flnandal ass8t8 8nd118bllltl88 are payab￿ wlthln 12 months, and are measured at tha tran68Ctk)n prlce1888 pro￿510n9 for Impalm*nL 18 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUKrn FOR THE YEAR ENDED 31 MARCH 2021 Stat•m•nt ol A¢￿Ul￿lng Pollel•• (¢onllnu•d) Funds 8tructur• a) General Fund- thls Is an unrestrlcted Income fund avallabl8 to the Trust88 to apply for the general purpo888 of the Charlty. b) Revaluatlon R888rve - th18 18 an unre8trlct8d capftal fund arfslng from thg revaluatlon of the Charws flxed 8888t8. It18 fK>t avallable for revenue pu￿868. c) Capltal Grants Reserve - th1618 a r8Strfcted fund refiedng the book value of flx&J assets financed by capital grants. The fvrKI18 reduced ovar the u88ful e￿nomIC lffe of the assets In Ilne wlth thalr depr8ciation poll￿. d) Endowment Fund- thF818 a restrlcted fvnd ￿ldIng capltal recelpts from the dlswJ881 of th8 Charlty8 fixed 8888ts. Invesknent Income from th18 fur¥J Is transferred to the general fund. Folk8Stone Parks and Pleasure Ground8 Chartty Is a reglBtered charfty arKI16 therefora potentially exempt from taxatlon on Its in￿rne and galns as the tharity falls wlthln th8 definltlon of a charflable trust a8 defined In Part 1. Sthedule 6 of the Flnance Art 2010. No tax ¢*8rge has arf88n In the year. Judg•m•nts and k•y sourcm of ••tlmatlon unc•rtalnty Th8 Truste8 do88 not con81der that thére are any 80urr£g of estimation uncertalnty at th8 reporting date that have a slgnificant rfsk of causlng a material adJu8trnent to carying amounts of a888ts and Ilabllltles ￿h1n the next reportlng perlod. The rnst significant area of Judgement arNI key assumptlon8 that affect Items In the accounts relate to ts revaluation of land and bulkllng8. Tre pandemlc and the me88ur88 taken to tsckl8 Cov1￿19 Gorrtlnue to affecl ecorK)ml88 and real estate markets globalty. Nev8rthe1086, as at the valuatlon date p￿pertY marl(ets are mostly functlonlng agaln, with trdnsactlon volumes and other relevant ￿Idence at levels where an adequate quantum of market evldence ex18t8 upon whlch to ba8e oplnlons of value. Valuatbns are th8rgforg not reported 88 belng 8ubJect to 'materfal valuatlon uncertaln a8 defin￿1 by VPS 3 and VPGA 10 of the RICS Valuatk)n - Global Standards, excepl In respect of Retall and 8pedfic tradlng related 8888t&189ctor6 8uch a8 camp slte8, a8 al the valuatlon date there cr)ntlnue to b8 an unprecedented set of clrcum8tan eAU8ed by Cov1￿19 arKI an absence of relevanusufficlent market emdence on ￿lch to ba88Judgements. Con8equ8ntly, le86 Certalnty and a hlgher degree of cautlon 8houkl be attached to tha valuatlon8 of these a88e18. Th18 d086 not appty to Freehold Land & Bulkllngs. 19 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Incom• Inveslm•nt InMm• 2020121 £'ooo 2019120 £'ooo Surn Held By Folkestone & Hythe D18trfcl Councll Rental Income (UK) 72 Donatlons The remaknlng balanco of donaOon8 recalved brougtht forward was £32,094. A grant of £20.000 wa8 re(%lved in 2020r21 and rK> eXpendI￿re wa8 In¢Jrr￿ lea￿n0 a balar of £52.094 to b8 Carrled f0Th￿rd at 31 Marth 2021. Contrlbutlon from Folknston• & Hyth• Dlstrfct Coun¢ll The net expendltur8 of the Chartty Is rnet from the r880urce8 of Folke8tone & Hythe DlstrlGt Council and16 treated as a Sp￿la1 expen88 chargeable through Councll Tax on the area of the fomier Borough of Folke8ton8 (the current area of Folke8tone and Sandgats). Employ•M and Managomont and Support 8•rvlc The Charity does not dlrectly employ any staff. Staffing costs, Includlng an on-COSt to recover Folke8tone & Hythe'8 pensbn and natlonal insurance overheads, are charged from the payroll of Folkestone & Hythe District Council elther dlrecty or through an apportlonment based on tlma allocthns. All apportloned Stafflng costs are Ind￿led under 'management arKI 8UPPOrt 88rvlc88'. No employ8e of Folk88tone & Hythe Dlthct Cour￿1 charged total employee benefits (exduding 8mployerf8 pen8bn ryJnlrlbudon8) In 8XC888 of £80,000 to the Charlty In 2020121. Pr•ml8•• and Ground8 EX￿na•S The costs Included In thls head1￿j are th08e relatlng to th8 grounds malntenanca 8ervlc8 and malntenance of the ChariiI8 a88ets InclLKling utility costs. Both maintenance 8ervlce8 are provlded by Folke8tone & Hythe D18trlct Coundl. Gov•rnance Costs 2020121 £'ooo 2019120 £'ooo Audltorfs Remuneratlon - CuThent Year Auditorfs Remuneratlon- Relatlng to Prk>r Years Valuallon fees (1) F888 for audlt of the 2020121 ac (38) 75 139 200 255 42 31 288 42 45 47 29 29 (29) 757 191 528 Management arKI Support S6￿Ces Governance C08ts 37 14 529 51 Contrlbutlon from Folkestone & Hythe Dl8tslct Coundl Net In¢om• Befor• Transfer8 544 Gross Trdnsfer betW88n fund8 N•t Incom• Boforn Other R•coqnl••d Galn• and Los8•• Flx•d AsBots a) D•finlUon8 of Flx•d A•••t• Freehokl Land and Bulldlng8 - functlonal a888ts u88d In the dellvery of 88rts, posslbly Income produclng e.g. car parks. 8POrts facllltles etc. Flxture8, Flttlng8 arKI Equlpment - play area equipment at the Coastal Parf( arKI play equipment at Radr￿r Parf( and Cantsrbury Road Recmtlon Grnund. Infra8tructure A8set8- long-llved capltal a888ts, normally ststlonary In naturn can be preserved for a slgnificantly greater numb8r of year8 than m08t capftal a888ts o.g. surfaclng and land8caping at Radnor Park. Investment A888ts- freehokl la￿1 bulldlng8 that arB lea88d at commerclal rents. There Is no h18t01￿ c08t to the charlty of the rev8lu8d assets a8 they ￿re tran8feThed no charge In 1991 on the formation of th8 chartty. 21 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Flxod A•80ts (conllnu•d) b) Mov•m•nt In Flx•d Asq•t• and Infr and Flxtur•• •lructur• Inv••tffl•nt A•••ts und•r Bulldln9• & FIttITV A•••t• con•tru￿l0n £'DDO £'(A)o Total 1 WI 2020 AddllknnB 521 521 (3) Rovalual¢)n 31 Mwch 2021 (3n 3,531 (197) (224) Im 1 Aprfl 2020 Revaluatlon8 for y8Ar 10 (21) 21 10 14 (21) 48 21 321 31 March 2020 154 31 March 2021 3,021 133 4924 he h18torfcal cost of Land and 8ulldlngs Ir￿ded above Is £2.889.000 (21)20: £2.689.000) c) Flx•d A•8•t Valuallon Th6 Charws freehold land and bulldlng8 and Investment 888ets (propertles), were ra valued at 31 March 2021 by an extemal Ind8pgndent valuer - Wllk8, Head & Eve Charter8d Surveyors - on the urKler-mentk)ned bases in accordance ￿ the Statements of Asset Valuation Practlce and Guldance Note8 of The Royal In811tuODn of Chartered Surveyor8. Freehold Land and Bulldlng8 - are v81u8d on the ba818 of open market valu8 for the exlstlng use or. whorn this rnuld not be a88es8ed becauB8 there was market for an a88Ot. the depredated replacement C08t. Investrnenl A888ts (prop8rtle8)- are valued on the ba818 of open market value. FOLKESTONE PARKS AND PLEA8URE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Flx•d Ass•ts (Mntlnu•d) d) Approxlmat• Ar•a of Charfty• Land 31 Mareh 2021 H•clarn8 102 13 31 March 2020 H•ctar•• 102 13 East Cllff and Warr8n (Incl Durlocks) Lower Sandgate Road Radnor Park Mor8hall Recreatlon Ground Canterbury Road Recreation Ground 8) Capltal CommltsMnt• In November 2019 Folke8tone & Hylhe Dlstrlct Councll agreed a capltal (x)ntrfbulk)n to the Charlty of £500,0(X) to meet the capltal co8t of the propowl Beach Hut Scheme (8ee 8eclion 5.4 In thls report). In 8ummary, the prop088d £500,000 capltal sche￿18 for the folk)wlng programma of ￿￿rks. Renovate the exlstlng 8 Uered chalats Renovate th8 exlsllng 8 pltched roof chalats Undertake engineemng works to stabllls8 and 6UPPOrt the cllff Undertake Infrastructure improvement8 (walls, Surfacing, 8leps. d16abled access) o UrKlertake drainage Improvements o In8ts11120 now *ooden chalet8 Followlng commencement of the ov8r811 projected c08t of the 8chem8 ha8 Increased to £577,000 due to hlgher than antlcApatsd LY)8t8 to rerK>vats exF8tI chalets,. signfficant Increa888 In materlal c08ts as a result of the COVltk19 pandemlc: arKI addltional (xjsts for unidentlfled a8best08 removal required as part of the demolltion and concrete KrJrk8. The Charlty b to r￿1ve a contslbutlon of £7,500 toward6 the 8ch6m8 and a further capltal contribudon of £69,500 ha8 been agreed by Folkestone & Hythe Distrfct Councll (in January and November 2021) tsklng total bornwlng to £589,500. The borrowlng perfod IS 10 years and the indicatlve annual capltal flnanciTrJ C08t18 estlmated to be £62,000 arKI the Charlty wlll me8t the flnancing c08ts over a 10 year perlod from the gr088 addluonal ravenu8 Irthme generated from the 8cheme. Dobtorn 2020121 2019120 £'ooo Sum Held By Folk88tone & Hytha Dlstrict Councll (see note10) 235 235 181 181 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 10. Sum H•ld by Folk•ston• & Hytho Dhtrlct Councll Th8 Councll'8 Inve8tment8, IndudlrvJ tha Charftys capltal r8celpts, ar8 now managed In-M)u8e. The Charitys capltal receipts are not In a rfntrfenced Inv8stment but are part of Folkestona & Hythe'8 0V8rall Investment furKI8. Folkestone & Hythe D18trlct Coundl also hold3 th8 ChartV8 dtyt¢￿day ca8h balarKe In one of bank accounts. Sums held by the Councll on behalf of tho Charfty are now treated as 8 debtor balance to acknovledg8 that th8 Councll has ￿StodY of tho fvnds but not b8n8fidal ownershlp. 2020121 2019120 £'ooo £'ooo 119 119 Capltal Recelpts from DIsp08al of Flxed Assets {Endown￿nt Fund held by F&HDC) Grants and Contrlbutlons (Re8trlcted Funds held by F&HDC) General Reserve (Unr8th(*ed Funds held ty F&HDC) Movement In Trade D6btor8 arKI Credltor8 (Adnkn18tered by F&HDC) 52 32 29 235 181 11. Cr•dltors Duo Wlthln On• Y••r a) Balanu• at year •nd 2020121 £'ooo 2019120 £'ooo Trade Cr•Jltor8 Acuu818 D8ferred Incom8 14 b) Mov•m6nt In th• Y•ar Beach Hut rental Income Is payable elther quarterly In advance 8018 treatsd a8 def8rr￿1 Income In the accounts arKI onty recognls8d as Income In the p8rfod to It r8lat88. Balanc• at Incom• Incom• Balanc• at 31 March r•l•as•d d•ferr•d 31 March 2020 In y•ar In y•ar 2021 £'ooo £'ooo £'ooo £'ooo D•ferrnd Incom• B8ach hut rentsl Incom FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOIE8 TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 12. Cr•dltorn Du• Aft•r Morn Than On• Y•ar 2020121 £'ooo 524 524 2019120 £'ooo Loan due to F&HDC above loan Is In respe￿ of the r8furbI8hm￿tt of the Beach Chalets a8 d18cIos8d In nots 88. 13. Fund Mov•m•nts In th• Y•ar a) Mov•rn•nt In currnnt yTar B•lanc• at 31 N•t March 2020 Incom• Transfern £'ooo £Y)00 rooo Balance at 31 March 2021 £'ooo Capltal Grants Re8eNe Endowment Fund Unrnstrlcted Funds.. Revaluatlon Re88rv8 Generdl Fund 2,835 119 20 (51) 119 1,872 13 4,839 (213) {51 244 1,859 13 4.595 51 The tran6fer8 betW88n furKIg of £51 k relats lo the transfer of dep￿la￿On £48k and appllcatlon of capltsl grants £3k. b) M0￿MOnt In wlor y•ar Balance at 31 N•t March 2019 Inc¢xn• Transforn £'ooo £'ooo £'ooo Balance at 31 March 2020 £'ooo Capltal Grants Reserve Endowrnnt Fund 2,910 119 (81) 119 Revaluatlon Reserve General FurKI 1,284 588 28) 1.872 13 4,839 81 4.273 25 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNT8 FOR THE YEAR ENDED 31 MARCH 2021 14. Analysls of N•t A88•ts IJ•lw••n Funds 2020121 Long Curr•nl T•rni A880ts Uabllltlo8 £'ooo £'ooo Flx•d Fund Balancos £'ooo £wo Capltal Grants R886rv8 ErKlowment Fund Unrnstrld•d Funds.. Revalualion Re88rve General Fund 2,804 2,804 119 119 1,659 461 4.924 1,659 13 4.595 78 195 524 524 2019r20 N•1 Long Curr•nl T•rni Aso•t8 Ll•bllltl rooo £￿00 Flx•d Fund Balanc•s £'ooo £'ooo R•strIct￿ Funds: Caplt81 Gr8nt8 ReseNa EndowTnent Fund Unrnstrlcted Funds." Revaluation Reserve General Fund 2.835 2,83S 119 119 1,872 1,872 13 4,839 53 172 15. R•conclll•llon of N•t Ca•h Flvw from Opor4tlng Actmtl 2020121 2019120 £'ooo £'ooo Net {exp8ndltureykncome for the rgportlng perfod {as per 8taternent of financial a(￿88) (244) AdJu8trnents for. Depreclatlon Gharge Lossl(Galn8) on Investments Lossl(G8lns) on f￿ assets Dlvidends, inlerest and rents from Inve8trnents (IncreaseyDeGreas8 In debtor8 Increasel(Decrease) In credllor8 31 (289) (299) {72) 197 18 (48) 37 (30) N•t eash provld•d byl(u8•d In) oprallnq actlvltl•8 FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 16. Anal￿1$ of Cash and Cash Ewlvalonts 2020121 2019120 £'ooo £'ooo Sum held by Folkestone &Hylhe D18trlct Coundl 235 181 Total cash and eash •qulval•nts 17. R•latsd Party Tran•actlo The Charlty18 requ1￿1 to dlsc1088 matsrlal tran8actlon8 wlth relatod parues, bodle8 or Indlvlduals that have th8 Potential to LX)ntrol or irffluence the Charlty (or to be (x)ntrolled or influenced by the Chartty). Dl8cIo8ur8 of th888 tran8actlon8 allows r8ader8 to a8se88 the exl8nt to whlch the Charlty mlght have been constrdined In Its abilty to oparate Indep8nd8ntly (or mtght havo Secu￿d the capablllty to Imlt another patys ablllty to barYJain freely wlth the Charfty). Folkestone & H￿h6 Dlsblct CounGII has effect￿ control over the general operalons of the Charlty. It 18 re8pon8lble for provldlng the majorlty of the Charws fundlng by Ilnanclng It8 nat ttjst. The Corporat8 Truste8 dutles of the Councll are c4rrled out by Its cablnet counclllors. The Charws management and support arKI grounds mairrtenance Is provklgd by Councll offlcer8. Counclllors ar8 requlred to observe the code of conduct for counclllors. regl8tsrflnandal Interests under 88clion 81 (1) of the Local Govemment Act 2000 arKI reglster the recelpt of any g1ft81h)8pllality over £25. There are no materfal related paty transactlons wlth coundllors to dl8cIo8e for 2020121. Officer8 are requlred tt) ob8eM the oxle of conduct for offic&r8 8rKI reglster th8 recelpt of any gfft81hospilality. The Charlty had rK) materlal related paty transactlon8 wlth offlcer8 durlng 2020121. Materfal aff￿unts Indud￿j In the Charws accounts relatlng to Folkestone & H￿h0 Dlstrlct Councll are a8 follows: Statsm•nt of Flnanelal Actlvld•s 2020121 £'ooo (529) 2019120 £'ooo (543) 37 Contrlbutlon to flnance net expendlture Provlslon of management and support 88rvlce8 Provlslon of grourKls malntenance and deanS1￿j seNlce8 (888 note 5) 623 595 18. K•y Manag•mont Porsonn•l The Corporate Tru8ts9, Folke8ton8 & Hythe Distrfct Coundl, constitules the key management per80nnel of the Charlty. The ￿bInet members of Folkeston8 & Hythe Dl8trlct Councll, a815sted on page 1. have not recelved any remuneratlon or expenses for canyng out the Corporate Tru8f8e functlon on bohalf of the Councll.