2023-03-31-accounts

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY

Annual Report and Accounts for the Year Ended 31 March 2023

Table of Contents

Annual Report ......................................................................................................... 3 Accounting and Reporting Responsibilities............................................................ 10 Independent Auditor’s Report ................................................................................ 12 Statement of Financial Activities ............................................................................ 15 Balance Sheet ....................................................................................................... 17 Statement of Cash Flows ...................................................................................... 18 2. Income ............................................................................................................................... 22 3. Contribution from Folkestone & Hythe District Council ...................................................... 22 4. Employees and Management and Support Services ......................................................... 22 5. Premises and Grounds Expenses...................................................................................... 22 6. Governance Costs ............................................................................................................. 22 7. Unrestricted Fund - Analysis of Net Income ....................................................................... 23 8. Fixed Assets ...................................................................................................................... 23 9. Debtors .............................................................................................................................. 25 10. Sum Held by Folkestone & Hythe District Council ............................................................. 25 11. Creditors Due Within One Year.......................................................................................... 26 12. Creditors Due After More Than One Year .......................................................................... 26 13. Fund Movements in the Year ............................................................................................. 27 14. Analysis of Net Assets between Funds .............................................................................. 28 15. Reconciliation of Net Cash Flow from Operating Activities ................................................ 28 16. Analysis of Cash and Cash Equivalents ............................................................................ 28 17. Related Party Transactions ................................................................................................ 29 18. Key Management Personnel .............................................................................................. 29

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

1. INTRODUCTION

• 1.1 Folkestone & Hythe District Council, as Corporate Trustee, presents the annual report, together with the financial statements, for the year ended 31 March 2023 for the Folkestone Parks and Pleasure Grounds Charity (“the Charity”).

• 1.2 The Charity’s annual report and accounts have been prepared in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in UK and Republic of Ireland (FRS 102) “Charities SORP (FRS102)” together with the Charity’s governing document.

2. REFERENCE AND ADMINISTRATIVE INFORMATION

2.1	Name of Charity	Folkestone Parks and Pleasure Grounds Charity
2.2	Registration Number	1006288
2.3	Corporate Trustee	Folkestone & Hythe District Council
2.4	Names of the Representatives of the Trustee	Current (since May 2023): Cllr J Martin (Leader) Cllr T Prater (Deputy Leader) Cllr M Blakemore Cllr P Blakemore Cllr G Fuller Cllr R Holgate Cllr S Scoffham Cllr R Shoob Cllr J Speakman Former: (to May 2023) Cllr D Monk (Leader) Cllr Mrs J Hollingsbee (Deputy Leader) Cllr J Collier Cllr R Field Cllr D Godfrey Cllr S Peall Cllr T Prater Cllr L Whybrow Cllr D Wimble
2.5	Names of Chief Officers	Head of Paid Service – Susan Priest Financial Advisor to the Charity – Jonathan Smith Legal Advisor to the Charity – Nicola Murton
2.6	Principal Office	Folkestone & Hythe District Council Civic Centre, Castle Hill Avenue Folkestone, Kent CT20 2QY

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

2.7	Principal External Advisors Bankers Auditor Investment Managers	Folkestone & Hythe District Council hold balances on behalf of the Charity. The Council’s bankers are: National Westminster Bank Europa House, 49 Sandgate Road, Folkestone, CT20 1RU Begbies Chartered Accountants, Unit 14, Park Barn, Evegate Business Park, Smeeth, Ashford TN25 6SX Folkestone & Hythe District Council

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

3. STRUCTURE, GOVERNANCE AND MANAGEMENT

• 3.1 Following the 1974 local government re-organisation, Folkestone & Hythe District Council succeeded the Borough of Folkestone as Corporate Trustee for a number of areas of land in Folkestone, each a charity in its own right, specifically provided as a park, pleasure ground or recreation ground for the use and enjoyment of the inhabitants of the town and its neighbourhood.

• 3.2 The areas of land are:

East Cliff and Warren

The Durlocks Lower Sandgate Road (Coastal Park) Radnor Park

Morehall Recreation Ground Canterbury Road Recreation Ground

• 3.3 The individual charities all had identical objectives and to improve their administration a successful application was made to the Charity Commission to combine them into one.

• 3.4 On 13 June 1991 the Folkestone Parks and Pleasure Grounds Charity was established, by a Charity Commission scheme, for the provision of parks, pleasure grounds or recreation grounds for the use and enjoyment of the inhabitants of the former Borough of Folkestone and the neighbourhood thereof.

• 3.5 In accordance with the constitution of Folkestone & Hythe District Council, the Council’s cabinet carries out its Corporate Trustee functions.

• 3.6 The cabinet consists of the leader who is elected by the Council, together with at least two, but no more than nine, councillors appointed to the cabinet by the leader. The current cabinet is shown at 2.4. Councillors are required to stand for election by the public every four years.

• 3.7 Day to day management of the Charity is delegated to chief officers in accordance with the Council’s constitution. The names and designations of chief officers are shown at 2.5.

• 3.8 The Charity is managed on the same basis as the Council’s own recreation service and is subject to the same codes and protocols specified in the Council’s constitution.

• 3.9 Risk Management

• The major risks to which the Charity is exposed are managed within Folkestone & Hythe District Council’s risk management strategy and policy.

• 3.10 It is the overall responsibility of the cabinet to approve the Council’s risk management policy and strategy, to review it on an annual basis and to promote a culture of risk management awareness throughout the Council, including the Charity.

• 3.11 The Council’s constitution specifies the risk management responsibilities of the head of paid service, the corporate directors and service managers.

• 3.12 Risks are identified, assessed and controls established throughout the year. The key controls used by the Council and the Charity include:

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

• formal written policies, codes and protocols;

• established organisational structure and lines of reporting;

• clear authorisation and approval levels;

• comprehensive strategic planning, budgeting and budgetary control;

• effective insurance cover and vetting procedures;

• regular training and guidance;

• maintenance of risk registers;

• formal agendas, reports and terms of reference for meetings, projects etc.

• 3.13 Through the Council’s risk management processes established for the Charity the cabinet, representing the Corporate Trustee, is satisfied that any identified major risks have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

4. OBJECTIVES AND ACTIVITIES

4.1 Objective of the Charity

The Charity’s objective, as set out in the Charity Commission scheme, is the provision of parks, pleasure grounds or recreation grounds for the use and enjoyment of the inhabitants of the area of the former Borough of Folkestone and its neighbourhood.

• 4.2 The parks and recreation grounds consist of the following:

East Cliff and Warren The Durlocks Lower Sandgate Road (Coastal Park) Radnor Park Morehall Recreation Ground Canterbury Road Recreation Ground

• 4.3 The representatives of the Corporate Trustee confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the Charity and in planning future activities.

4.4

Aims and Intended Impact

The principal aim of the Charity is to ensure the maintenance of the parks and recreation grounds, including public conveniences on charity land, in accordance with agreed specifications so that the residents of Folkestone and Sandgate can continue to use them for leisure pursuits and to enjoy the benefits of open spaces in an urban area.

• 4.5 Maintenance includes grass and hedge cutting, shrub and rose beds, herbaceous borders, annual bedding displays, tree stock, ponds and associated structures such as fences, walls, paths, car parks and public conveniences.

• 4.6 The Charity also provides sports facilities at East Cliff (bowls, golf, putting and tennis) and allows attractions to take place on the sites, particularly Radnor Park (e.g. annual donkey derby, amusements and boot fairs).

• 4.7 The success of the coastal park on the Lower Sandgate Road continues after 20+ years of it’s opening in 2000. The park is monitored by CCTV and has a warden. It has an approximate area of 25 hectares designed into three zones.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

• 4.8 The formal zone comprises pine avenues, formal planting and hard landscaping. The fun zone contains the largest free play area in the southeast as well as a zigzag path and amphitheatre. The wild zone encourages wildlife through sensitive habitat management.

4.9 Objectives for 2022/23

The main objective for 2022/23 was to ensure that the maintenance of the charitable land continued to the agreed standards.

• 4.10 This links to Folkestone & Hythe’s strategic objective ‘A thriving environment’ of providing a clean, attractive and safe environment for residents, visitors and businesses.

• 4.11 Key actions for 2022/23 were the retention of the Green Flag accreditation national recognition for the Coastal Park and Radnor Park, ensuring a summer events programme in the Coastal Park and Radnor Park.

5. REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR 2022/23

5.1 Radnor Park

The park continues to be popular with local residents and is being well used and has retained its Green Flag Award for the sixth year running.

A new pétanque group was founded by local residents in order to raise funding for a permanent square.

Following the introduction of five Bee Kind / wildlife areas in 2021/22, 50,000 native pollinator-friendly spring flowers were planted to further the biodiversity in the area.

• 5.2

• Coastal Park

The Coastal Park continues to be the key destination play site for the District, retaining its Green Flag status for the 16th consecutive year.

The four free family rock-pooling sessions were still popular and well attended.

The free production of Shakespear’s Othello performed by Changeling theatre was extremely well attended and received.

A total ban of BBQs announced in June 2020 has resulted in a large decrease in littering, vandalism and parking issues in the park and remains in place.

A battery powered wheelbarrow was purchased in February 2023 with the aim to minimise noise and CO2 pollution in the park.

• 5.3 East Cliff Sports

The sports facilities continue to be well used by the public and schools alike with similar income levels to 2021/22.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

A full public consultation took place in July 2022 regarding facilities on the East Cliff, with the results compiled from October 2022 for consideration by the Trustees. It was agreed not to increase the leisure facilities at East Cliff but for the Council to explore external sources of funding to improve the play area and address the cost of maintaining the existing sports facilities.

• 5.4 Beach Chalets – Marine Walk

The refurbishment of the Beach Chalets and local infrastructure along Marine Walk below the Coastal Park, agreed by the FPPG Trustees in October 2019, was completed in February 2021. Working together with Creative Folkestone, particularly the Artist Rana Begum, the Charity successfully delivered a colourful scheme which received positive national coverage. The Chalets continue to be viewed positively by the local community and are being enjoyed by tenants with 100% occupancy (115).

The final cost of the project was £577,000 against a budget of £500,000. The Council agreed an additional financial contribution of £69,500 to be repaid over the original ten year period in equal instalments from surpluses generated from rental income and the remaining £7,500 was funded by a contribution from the Creative Foundation. The Charity made its first annual repayment in 2021/22 when a sum of £56,544 was repaid; the second payment towards this was made in 2022/23.

6. FINANCIAL REVIEW 2022/23

• 6.1 The charity generated an operating surplus of £58,000 in 2022/23 (£90,000 2021/22), largely due to rental income from the beach huts following completion of the refurbishment project and car parking income.

• 6.2 Net revenue expenditure is defined as net expenditure on unrestricted funds excluding depreciation and is met by a contribution from Folkestone & Hythe District Council, as it is the intention for the charity to achieve a breakeven position each year. See Note 7 for the analysis of net income.

• 6.3 The net revenue expenditure supported the objectives of the Charity by financing the maintenance of charitable open spaces, the provision of sports facilities at East Cliff and the management of the Coastal Park.

• 6.4 The net expenditure of the Charity was financed by Folkestone & Hythe District Council.

• 6.5 Reserves Policy

• The day-to-day finances of the Charity are administered within the financial systems of the Council, which also finances the net cost of the Charity on an ongoing basis. As a result there are no separate balances representing resources set aside for Charity purposes such as general contingencies and cash flow management.

• 6.6 The Charity’s general fund had a surplus of £171,000 at the end of 2022/23 (£113,000 2021/22).

• 6.7

Investment Policy and Performance

At the start of 2022/23 Folkestone & Hythe District Council held £118,434 on behalf of the Charity. That sum represented the brought forward balance of past proceeds of the sale

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

of charitable assets and is managed by the Council as part of its overall investment portfolio. The Council’s investment activity during 2022/23 complied with its approved Investment Strategy for the year. Most investments made were for up to a maximum of 12 months duration, reflecting the gradual rise in interest rates from their historically low base. The Council will continue to take a cautious approach around the credit risk of counterparties available to invest with. The Council also has a strategic long term investment in the CCLA Local Authority Property Fund.

• 6.8 Overall a return of approximately 2.34% was achieved on the Charity’s investment, earning interest of £7,936 for 2022/23 (£429 2021/22).

• 6.9 In line with Folkestone & Hythe District Council’s projected return on investments, it is anticipated that the 2023/24 investment return will be marginally higher than that achieved in 2022/23 due to the increased sum invested and the forecast increase in interest rates.

• 6.10 The Charity also holds five properties (valued at £1,289,000) that are leased at commercial rents and are classed as investment assets.

• 6.11 The Charity’s accounts showing the financial performance for the year ending 31 March 2023 are set out on pages 15 to 29. They consist of the following:

• a) The Statement of Financial Activities – which shows all resources made available to the Charity and all expenditure incurred by it.

• b) The Balance Sheet – which sets out the financial position of the Charity at the year end. It shows the balances and reserves at the Charity’s disposal and its long term indebtedness, together with summarised information on the fixed assets held.

• c) The Statement of Cash Flows – which shows how the Charity has used cash generated by its activities and changes in cash and cash equivalents held by the Charity.

• 6.12 The accounts are supported by the Statement of Accounting Policies and various notes to the accounts.

• 6.13 The charity finished the year with a surplus of £244,000 largely due to gains arising on the revaluation on fixed assets, bringing the total reserves to £5,071,000. Of these funds £2,752,000 are restricted and £118,000 are endowment funds. At the balance sheet date £5,285,000 of the reserves are represented by fixed assets and could only be accessed by the sale of those assets.

7. FUTURE PLANS

• 7.1 The Charity will be considering enhancing a number of its land and property assets with the intention of furthering the aims of the Charity and continues to improve the parks and pleasure ground facilities for the people of Folkestone and the surrounding areas.

• 7.2 Draft master-planning work commenced to potentially create a new destination play area and leisure hub at East Cliff following approval of the Play Area Strategy 2020-2030 which identified the site as a Priority Play Area. A full public consultation commenced in 2022/23; in July 2023, Trustees of the charity considered the response to the public consultation. It was agreed not to increase the leisure facilities at East Cliff but for the council to explore external sources of funding to improve the play area and address the cost of maintaining the existing sports facilities.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 AUDIT OF THE CHARrrY's ACCOUNTS 8.1 Begbies Chartered Accountants have been appointed to audit the 2022123 accounts in accordance with the Charities Act 2011. FURTHER INFORMATION 9.1 Further infomiation al)out the Charity can be obtained from Susan Priest. Head of Paid Service, Folkestone & Hythe District Council, Civic Centre, Castle Hill Avenue, Folkeston8, Kent CT20 2QY. (01303 852203) susan. nest folkestone-h ov.uk. The Annual Report for the year ended 31 March 2023 approved by the Cabinet of Folkestone & Hythe District Council. the Corporate Trustee, on 28 April 2025 and signed on its behalf by. Signed: Date: Cllr J Martln Chair Folkestone Parks and Pleasu￿ Grounds Charlty 2t- thf., (2cQf.

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 ACCOUNTING AND REPORTING RESPONSIBILITIES Folkestone & Hythe District Council as the Corporate Trustee of the Charty is responsible for preparing a Trustees, Annual Report and financial statements in accordan￿ with applicable law and United Kingdom Accounting Stsndards {United Kingdom Generally Accepted Accounts'ng Practice). The law applicable to charities in England and Wales requires Folkeslone & Hythe District Council to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements. the representatives of the Corporale Trustee are required to: • select suitable accounting policies and then apply them consistently. • observe the methods and prtnciples in the applicable Charities SORP,. make judgements and estimates that a￿ reasonable and prudent. state whether applicable accounting standards have been followed. subjecl to any material departures disclosed and explained in the financial statements; p￿pare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in business. Folkestone & Hythe District Council as the Corporate Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements Gomply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and tsking reasonable steps for the prevention and detection of fraud and other irregularities. Folkestone & Hythe District Council is responsible for the maintenance and integrity of the charity and financial infomiation included on the charitys webstte. Legislation in the United Kingdom governing the preparation and dissemination of financial slatements may differ from legislation in other jurisdictions. We certify that the financial statements on pages 15 to 29. have been prepared in accordance with the accounting policies set out on pages 17 to 19 and that it presents fairfy the financial position of the Folkestone Parks and pleasu￿ Grounds Charity at 31 March 2023 and the Charity's incoming and outgoing resources for the year then ended. Signed Signed Date Cllr J Martin Date 2glg1202S Chair Folkestone Parks and Pleasure Grounds Charity Financial Advisor to the Folkestone Parks and Pleasure Grounds Charlty

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Report of the Independent Auditor to the Members of Folkestone Parks and Pleasure Grounds Charity

Opinion

We have audited the financial statements of Folkestone Parks and Pleasure Grounds Charity for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of the charity’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 MARCH 2023

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charity; or

• sufficient accounting records have not been kept; or

• the charity financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Charities Act 2011 and the Charities SORP.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2023 We evaluated management's incenlives and opportunities for fraudulent manipulalion of the financial statements {including the risk of override of controls), and determined thal the principal risks were related to posting inappropriate journals entries and management bias in certain accounting estimates and judgements such as valuation of the unlisted investments. Audit procedures performed by the engagement team included.. The engagement partner ensured that the engagement team collectively had the appropriale ampetence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., Discussions with management including consideration of known or suspected instances of non- compliance with laws and regulation and fraud., Agreement of the financial slatement disclosures to underlying supporting documentation., Enquiries and confirmation of management and the trustees as to their identification of any non- compliance with laws or regulations, or any actual or potential claims; Review of minutes of Board meetings throughout the period., Incorporating unpredictability into the nature, timing andlor extent of testing., Evaluation of the selection and application of the accounting policies chosen by the charity., and Evaluating management's controls designed to prevent and detect irregularities. Because of the inherent limitations of an audil, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial stalements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so thal we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent pemiitled by law, we do not accept or assume responsibility to anyone olher than the charity's trustees as a body for our audit work, for this report, or for the opinions we have formed. Begbies Chartered Accountants Statutory Auditors Unil 14, Park Barn Evegate Business Park Smeeth, Ashford Begbies is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 14

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

	2022/23
	Unrestricted Fund	Restricted Funds	Endowment Funds	Total
	£'000	£'000	£'000	£'000
Income and Endowments from:
Donations for projects	0	19	0	19
Charitable Activities	171	0	0	171
Investment Income (note 2)	219	0	0	219
Contribution from Folkestone & Hythe DC (note 3)	514	0	0	514
Total	904	19	0	923
Expenditure on:
Charitable Activities
Operation of Parks and playgrounds
Employees (note 4)	20	0	0	20
Premises & Grounds (note 5)	671	38	0	709
Supplies and Services	101	0	0	101
Management and Support Services (note 4)	46	0	0	46
Governance Costs (note 6)	8	0	0	8
Depreciation	0	23	0	23
Total	846	61	0	907
Gains/(Losses) on Investment assets	0	0	0	0
Gains/(Losses) on Revaluation of Fixed Assets	228	0	0	228
Net (Expenditure)/Income	286	(42)	0	244
Transfers Between Funds	0	0	0	0
Net Movements in Funds	286	(42)	0	244
Reconciliation of Funds:
Total funds brought forward	1,915	2,794	118	4,827
Total funds carried forward	2,201	2,752	118	5,071

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

		2021/22
	Unrestricted Fund	Restricted Funds	Endowment Funds	Total
	£'000	£'000	£'000	£'000
Income and Endowments from:
Donations for projects	0	27	0	27
Charitable Activities	180	0	0	180
Investment Income (note 2)	157	0	0	157
Contribution from Folkestone & Hythe DC (note 3)	559	0	0	559
Total	896	27	0	923
Expenditure on:
Charitable Activities
Operation of Parks and playgrounds
Employees (note 4)	7	0	0	7
Premises & Grounds (note 5)	662	0	0	662
Supplies and Services	89	0	0	89
Management and Support Services (note 4)	34	0	0	34
Governance Costs (note 6)	6	0	0	6
Depreciation	35	0	0	35
Total	833	0	0	833
Gains/(Losses) on Investment assets	59	0	0	59
Gains/(Losses) on Revaluation of Fixed Assets	84	0	0	84
Net (Expenditure)/Income	206	27	0	233
Transfers Between Funds	37	(37)	0	0
Net Movements in Funds	243	(10)	0	233
Reconciliation of Funds:
Total funds brought forward	1,672	2,804	119	4,595
Total funds carried forward	1,915	2,794	119	4,827

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY BALANCE SHEET AS AT 31 MARCH 2023 2022123 11 2021122 £'ooo £'ooo FIXED ASSETS (note 8) Freehold Land and Buildings Fixtures, Fittings and Equipment Infrastructure Assets Investment Assets (Properties) Total Fixed Assets 3,821 IIL 96 IIIIW 79 1,289 5,285 3,595 113 1,289 5,081 CURRENT ASSETS Debtors (note 9) Total Current Assets 290 290 347 347 LIABILITIES Creditors: due within 1 year (note 11) Net Current Assets 109 181 91 256 Total Assets Less Current Liabilities 5.466 5,337 Creditors: due after more than 1 year (note 12) 395 509 TOTAL NET ASSETS 5,071 4.828 THE FUNDS OF THE CHARITY Endowment Fund Restricted Funds: Capital Grants Reserve Unrestricted Funds: Revaluation Reserve Unrestricled General Fund TOTAL CHARITY FUNDS (note 13) 118 119 2,752 2.794 2,030 171 5.071 1,802 113 4.828 Approved by the Cabinet of Folkestone & Hythe District Council. the Corporate Trustee. on 28 April 2025 and signed on its behalf by: Signed Date p.12c)L CllrJlm Martln Chair Folkestone Parks and Pleasure Grounds Charfty 17

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH 2023

	2022/23	2021/22
	£'000	£'000
Cash flows from operating activities:
Net cash provided by operating activities (note 15)	(211)	11
Cash flows from investing activities:
Dividends, interest and rents from investments	219	157
Purchase of investment	0	(49)
Net cash provided by/(used in) investing activities	219	108
Cash flows from financing activities:
Repayments of borrowing	(57)	(57)
Cash inflows from new borrowing	0	42
Net cash (used in)/provided by financing activities	(57)	(15)
Change in cash and cash equivalents in the year	(49)	104
Cash and cash equivalents at the beginning of the year	339	235
(note 16)
Cash and cash equivalents at the end of the year (note 16)	290	339

Analysis of changes in net debt:	At 1 April	Cashflows	At 31 March
	2022		2023
	£’000	£’000	£’000
Cash at bank in hand	339	(49)	290
Debt:
Loans	509	(57)	452
Net debt	509	(57)	452

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

1. Statement of Accounting Policies

Basis of the Preparation of Accounts

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102), the Charities Act 2011 and applicable regulations. The accounts have been prepared on a going concern basis and under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The charity constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern.

Income and Expenditure

The revenue and capital accounts of the Charity are maintained on an accruals basis. That is, sums due to or from the Charity are accounted for in the year to which they relate whether or not the cash has actually been received or paid in the year. Accounts are accrued on an estimate basis where actual figures are not known.

Income is recognised once the charity has sufficient certainty of receipt and the amount of income can be measured reliably.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount can be measured reliably. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Grants and Contributions

Revenue grants and contributions are matched with the expenditure to which they relate.

Where the acquisition of a fixed asset is financed either wholly or in part by a grant or other contribution, the Charity will normally have entitlement to the incoming resource when it is receivable. At this point the income is recognised in the Statement of Financial Activities and is not deferred over the life of the asset.

Grants and other contributions are accounted for on an accruals basis and recognised in the accounting statements when the conditions for their receipt have been complied with and there is reasonable assurance that the grant or contribution will be received.

Overheads

There is a recharge from the accounts of Folkestone & Hythe District Council, based on time allocations, to reflect the cost of administrative and management support for the Charity.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Statement of Accounting Policies (continued) Fixed Assets

Capitalisation

All expenditure on the acquisition, creation or enhancement of fixed assets is capitalised on an accruals basis in the accounts. Generally expenditure of over £10,000 on fixed assets is capitalised, provided that the fixed asset yields benefits to the Charity and the services it provides, for a period of more than one year, excluding routine repairs and maintenance of fixed assets which is charged directly to resources expended.

Valuation

• Freehold land and buildings are included in the balance sheet at the lower of net current replacement cost or net realisable value in existing use.

• Fixtures, fittings and equipment are included in the balance sheet at historical cost.

• Investment assets (properties leased at commercial rent) are included in the balance sheet at the lower of net current replacement cost or net realisable value. This is normally open market value.

The surpluses arising on the initial valuation of fixed assets have been credited to the revaluation reserve. Subsequent revaluations of fixed assets are planned at five yearly intervals, although material changes to asset valuations will be adjusted in the interim period, as they occur. For example, assets are reviewed annually for impairment loss. In accordance with this policy the fixed assets were re-valued as at 31 March 2023.

Any assets acquired under finance leases are also capitalised in the Charity’s accounts, together with the liability to pay future rentals.

Depreciation

Depreciation is provided for on all fixed assets with a finite useful life, which can be determined at the time of acquisition or revaluation. Depreciation is based on the asset value included in the balance sheet. The straight line method of calculation is used.

Depreciation is not provided for freehold land or investment assets.

Depreciation rates for other tangible assets are as follows:

functional buildings 20-35 years fixtures, fittings and equipment 5-10 years infrastructure assets 20 years

Financial instruments

The charity only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loan balances with its parent entity, Folkestone & Hythe District Council. Financial assets and liabilities are payable within 12 months for short term financial assets and liabilities, and are measured at the transaction price less provisions for impairment.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Statement of Accounting Policies (continued)

Funds Structure

• a) General Fund – this is an unrestricted income fund available to the Trustee to apply for the general purposes of the Charity.

• b) Revaluation Reserve – this is an unrestricted capital fund arising from the revaluation of the Charity’s fixed assets. It is not available for revenue purposes.

• c) Capital Grants Reserve – this is a restricted fund reflecting the book value of fixed assets financed by capital grants. The fund is reduced over the useful economic life of the assets in line with their depreciation policy.

• d) Endowment Fund – this is a restricted fund holding capital receipts from the disposal of the Charity’s fixed assets. Investment income from this fund is transferred to the general fund.

Taxation

Folkestone Parks and Pleasure Grounds Charity is a registered charity and is therefore potentially exempt from taxation on its income and gains as the charity falls within the definition of a charitable trust as defined in Part 1, Schedule 6 of the Finance Act 2010. No tax charge has arisen in the year.

Judgements and key sources of estimation uncertainty

The Trustee does not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

The most significant area of judgement and key assumptions that affect items in the accounts relate to the revaluation of land and buildings.

Valuations are not reported as being subject to ‘material valuation uncertainty’ as defined by VPS 3 and VPGA 10 of the RICS Valuation – Global Standards, except in respect of Retail and specific trading related assets/sectors such as camp sites, as at the valuation date there continues to be an absence of relevant/sufficient market evidence on which to base judgements. Consequently, less certainty and a higher degree of caution should be attached to the valuations of these assets. This does not apply to Freehold Land & Buildings.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

2. Income

Investment income

	2022/23	2021/22
	£’000	£’000
Rental Income (UK)	158	157
External Investment Interest	8	0
Share of centrally determined income recharge	53	0
	219	157

Donations

Donations of £18,619 were received in 2022/23 and expenditure of £24,616.

3. Contribution from Folkestone & Hythe District Council

The net expenditure of the Charity is met from the resources of Folkestone & Hythe District Council and is treated as a special expense chargeable through Council Tax on the area of the former Borough of Folkestone (the current area of Folkestone and Sandgate).

4. Employees and Management and Support Services

The Charity does not directly employ any staff. Staffing costs, including an on-cost to recover Folkestone & Hythe’s pension and national insurance overheads, are charged from the payroll of Folkestone & Hythe District Council either directly or through an apportionment based on time allocations. All apportioned staffing costs are included under ‘management and support services’.

No employee of Folkestone & Hythe District Council charged total employee benefits (excluding employer’s pension contributions) in excess of £60,000 to the Charity in 2022/23.

5. Premises and Grounds Expenses

The costs included in this heading are those relating to the grounds maintenance service and maintenance of the Charity’s assets including utility costs. Both maintenance services are provided by Folkestone & Hythe District Council.

6. Governance Costs

	2022/23	2021/22
	£’000	£’000
Auditor’s Remuneration–Current Year	4	3
Valuation fees	4	3
	8	6

Fees for audit of the 2022/23 accounts are estimated at £4k and have been accrued in 2022/23.

22

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

7. Unrestricted Fund - Analysis of Net Income

	2022/23	2022/23	2022/23	2021/22
	Running	Income	Net	Net
	Costs		Total	Total
	£'000	£'000	£'000	£'000
East Cliff & Warren (including Durlocks)	161	(54)	107	110
Lower Sandgate Road	181	(122)	59	67
Radnor Park	332	(53)	279	272
Morehall Recretional Ground	43	0	43	44
Canterbury Road Recretional Ground	43	0	43	45
Marine Walk Beach Chalets	32	(108)	(76)	(82)
Subtotal	792	(337)	455	456
Management and Support Services			(7)	34
Governance Costs			8	6
Subtotal			1	40
Contribution from Folkestone & Hythe District Council			(514)	(559)
Net Income Before Transfers			(58)	(63)
Gross Transfer between funds			0	(37)
Net Income Before Other Recognised Gains and Losses			(58)	(100)

8. Fixed Assets

a) Definitions of Fixed Assets

Freehold Land and Buildings – functional assets used in the delivery of services, possibly income producing e.g. car parks, sports facilities etc.

Fixtures, Fittings and Equipment – play area equipment at the Coastal Park and play equipment at Radnor Park and Canterbury Road Recreation Ground.

Infrastructure Assets – long-lived capital assets, normally stationary in nature and can be preserved for a significantly greater number of years than most capital assets e.g. surfacing and landscaping at Radnor Park.

Investment Assets – freehold land and buildings that are leased at commercial rents.

There is no historic cost to the charity of the revalued assets as they were transferred with no charge in 1991 on the formation of the charity.

b) Movement in Fixed Assets

23

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

	*Land and Building s	Fixtures & Fittings	Infra- structur e Assets	Investm ent Assets	Assets under Constru c-tion	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Cost or valuation
01 April 2022	3,604	454	109	1,289	0	5,456
Additions	0	0	0	0	0	0
Revaluations	228	0	0	0	0	228
31 March 2023	3,832	454	109	1,289	0	5,684
Accumulated Depreciation and Impairment Provision
01 April 2022	10	341	25	0	0	376
Revaluations	0	0	0	0	0	0
Charge for year	1	17	5	0	0	23
31 March 2023	11	358	30	0	0	399
Net Book Values
31 March 2023	3,821	96	79	1,289	0	5,285
31 March 2022	3,595	113	84	1,289	0	5,081

*The historical cost of Land and Buildings included above is £2,689,000 (2022: £2,689,000)

c) Fixed Asset Valuation

The Charity’s freehold land and buildings and investment assets (properties), were re-valued at 31 March 2023 by an external independent valuer – Wilks, Head & Eve Chartered Surveyors – on the under-mentioned bases in accordance with the Statements of Asset Valuation Practice and Guidance Notes of The Royal Institution of Chartered Surveyors.

Freehold Land and Buildings – are valued on the basis of open market value for the existing use or, where this could not be assessed because there was no market for an asset, the depreciated replacement cost.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Investment Assets (properties) – are valued on the basis of open market value.

d) Approximate Area of Charity’s Land

	31 Mar 23	31 Mar 22
	Hectares	Hectares
East Cliff and Warren (incl Durlocks)	102	102
Lower Sandgate Road	13	13
Radnor Park	8	8
Morehall Recreation Ground	5	5
Canterbury Road Recreation Ground	2	2
	130	130

9. Debtors

	2022/23	2021/22
	£’000	£’000
Sum Held By Folkestone & Hythe District Council (see note 10)	291	339
Trade debtors	0	8
	291	347

10. Sum Held by Folkestone & Hythe District Council

The Council’s investments, including the Charity’s capital receipts, are now managed in-house. The Charity’s capital receipts are not in a ring-fenced investment but are part of Folkestone & Hythe’s overall investment funds.

Folkestone & Hythe District Council also holds the Charity’s day-to-day cash balance in one of its bank accounts. Sums held by the Council on behalf of the Charity are now treated as a debtor balance to acknowledge that the Council has custody of the funds but not beneficial ownership.

	2022/23	2021/22
	£’000	£’000
Capital Receipts from Disposal of Fixed Assets	118	119
(Endowment Fund held by F&HDC)
Grants and Contributions	71	71
(Restricted Funds held by F&HDC)
General Reserve	171	130
(Unrestricted Funds held by F&HDC)
Movement in Trade Debtors and Creditors	(51)	19
(Administered by F&HDC)
	309	339

25

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

11. Creditors Due Within One Year

	2022/23	2021/22
	£’000	£’000
Trade Creditors	0	0
Accruals	7	10
Deferred Income	44	81
Deposits	1	0
Loan due to F&HDC	57	0
	109	91

12. Creditors Due After More Than One Year

	2022/23	2021/22
	£’000	£’000
Loan due to F&HDC	395	508
	395	508

Following completion of the Beach Chalets and local infrastructure in February 2021, the Charity had total borrowing with FHDC totalling £569,500 (see section 5.4 in the Trustees Report). The borrowing period is 10 years and the indicative annual capital financing cost is estimated to be £62,000 and the Charity will meet the financing costs over a 10 year period from the gross additional revenue income generated from the scheme. A sum of £56,544 was repaid during the financial year. This equates to an effective annual interest rate of 2%.

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

13. Fund Movements in the Year

a) Movement in current year

	Balance at 31 March 2022	Net Income	Transfers	Balance at 31 March 2023
	£'000	£'000	£'000	£'000
Restricted Funds:
Capital Grants Reserve	2,794	(42)	0	2,752
Endowment Fund	118	0	0	118
Unrestricted Funds:				0
Revaluation Reserve	1,802	228	0	2,030
General Fund	113	58	0	171
	4,827	244	0	5,071

The transfers between funds of £43k relate to the transfer of depreciation £23k and application of capital grants £19k.

b) Movement in prior year

	Balance at 31 March 2021	Net Income	Transfers	Balance at 31 March 2022
	£'000	£'000	£'000	£'000
Restricted Funds:
Capital Grants Reserve	2,804	27	(37)	2,794
Endowment Fund	119	0	0	119
Unrestricted Funds:
Revaluation Reserve	1,659	143	0	1,802
General Fund	13	63	37	113

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FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

14. Analysis of Net Assets between Funds

2022/23	Fixed Assets	Net Current Assets	Long Term Liabilities	Fund Balances
	£'000	£'000	£'000	£'000
Restricted Funds:
Capital Grants Reserve	2,752	0	0	2,752
Endowment Fund	0	118	0	118
Unrestricted Funds:				0
Revaluation Reserve	2,030	0	0	2,030
General Fund	213	(495)	452	170
	4,995	(377)	452	5,070

2021/22	Fixed Assets	Net Current Assets	Long Term Liabilities	Fund Balances
	£'000	£'000	£'000	£'000
Restricted Funds:
Capital Grants Reserve	2,794	0	0	2,794
Endowment Fund	0	119	0	119
Unrestricted Funds:
Revaluation Reserve	1,802	0	0	1,802
General Fund	485	137	(509)	113
	5,081	256	(509)	4,828

15. Reconciliation of Net Cash Flow from Operating Activities

	2022/23	2021/22
	£’000	£’000
Net (expenditure)/income for the reporting period	244	233
(as per statement of financial activities)
Adjustments for:
Depreciation charge	23	35
Loss/(Gains) on investments	0	(59)
Loss/(Gains) on fixed assets	(228)	(84)
Dividends, interest and rents from investments	(219)	(157)
(Increase)/Decrease in debtors	8	(8)
Increase/(Decrease) in creditors	(39)	51
Net cash provided by/(used in) operating activities	(211)	11

16. Analysis of Cash and Cash Equivalents

28

FOLKESTONE PARKS AND PLEASURE GROUNDS CHARITY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

	2022/23	2021/22
	£’000	£’000
Sum held by Folkestone &Hythe District Council	290	339
Total cash and cash equivalents	290	339

17. Related Party Transactions

The Charity is required to disclose material transactions with related parties, bodies or individuals that have the potential to control or influence the Charity (or to be controlled or influenced by the Charity). Disclosure of these transactions allows readers to assess the extent to which the Charity might have been constrained in its ability to operate independently (or might have secured the capability to limit another party’s ability to bargain freely with the Charity).

Folkestone & Hythe District Council has effective control over the general operations of the Charity. It is responsible for providing the majority of the Charity’s funding by financing its net cost. The Corporate Trustee duties of the Council are carried out by its cabinet councillors. The Charity’s management and support and grounds maintenance is provided by Council officers.

Councillors are required to observe the code of conduct for councillors, register financial interests under section 81(1) of the Local Government Act 2000 and register the receipt of any gifts/hospitality over £25. There are no material related party transactions with councillors to disclose for 2022/23.

Officers are required to observe the code of conduct for officers and register the receipt of any gifts/hospitality. The Charity had no material related party transactions with officers during 2022/23.

Loan interest charges on the capital loan from the Council equates to an effective annual interest rate of 2%.

Material amounts included in the Charity’s accounts relating to Folkestone & Hythe District Council are as follows:

	2022/23	2021/22
	£’000	£’000
Contribution to finance net expenditure	(514)	(559)
Provision of management and support services	46	34
Share of centrally determined income recharge	(53)	0
Provision of grounds maintenance and cleansing services (see note 5)	709	662

18. Key Management Personnel

The Corporate Trustee, Folkestone & Hythe District Council, constitutes the key management personnel of the Charity. The cabinet members of Folkestone & Hythe District Council, as listed on page 1, have not received any remuneration or expenses for carrying out the Corporate Trustee function on behalf of the Council.

29