THF HAMPSTF.AD GARDEN SUBURB TRUST LIMITED (Formerly The New Hampste#d Garden Suburb Trust Limited) (A company limited by guaraRtee and having no share capital) REPOIiT AND ACCOUNTS FOR TIIE YEAR ENDED 5 APRIL 2021 Charity Numbcr: 10511098 Company Number.. 928520 Registercd in England
THE HAMPSTEAD GARDEN SiJBURB TRUST LIMITED (Formerly The New Hap5te2d evrdeTr Suburb Trust Limited> (A company limited by guargnlee and hoving DO 5hRf¢ c8Pltal) REPORT AND ACCOUNTS FOR THE YEAR ENDED S APRIL 2021 CONTENTS Page Chaiiman's review Legal and adtnillistrative details Report of the council 6-12 Independent auditors, report Statemcni of financial activities 16 Balance sheet 17 Statement of ¢a5h flows 18 Notes to the fiTtan¢ial statem¢ntS 19-29
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITF.D CHAIRMAN'S REVIEW 2020n021 202012021 has been a year like no other. At thc time of wriling this rcport many of the Covid restrictions arc likely to b¢ lifted but it is becoining increasingly clear that we aTe going to have to learn to live with Covid. As part of thi% we ar¢ looking to hold this year's AGM in person, keeping Itvc attcndanee to the safe capacity of the venue and live-streaming the event to anyone unable to attend. The TNst rose to the challenge of remote working. In sumimary All essential Trust functions were maintained OperationAI processes were streamlined or moved on-line, including planning applications, most financial processeg and record-keeping We appoint¢d external accountants lo fulfil a finance director rol¢ and this has improved financial reporting and operational managemeni All mectings have taken place on Zoom and whilst we all have inissed the personal interaction these have worked very successfully. Whilst this statement was in my report last year thc acquisition of Central Square 15 ntsw due to be completed any time now, 202012021 g&w & major increase in applications 85 a result of residents wanting to make more use of their prop¢rtie including many rnore garage conversions, extensions and loft conversions. We also saw more work carried out without consent which has required reinedial action by the Trust. The Trust will not hesitat¢ to take action where required. should like to thank all the staff for all their haid woi'k in these very challenging time5 Lind in particular Ihe leadership shown by Simon Hend¢rson. I should also like to thank the tTUStees and volunteers foi their time and coinmilment to the frust. and to wel¢om¢ our new trSlee, Trevor Price, and his contribution to thc Trust. As you will See from these Accounts we have had a go(Kl financial perfor]nance thi5 year. This will be reflected in the rebate un Éhe managJem¢nt charge as well giving the Trust ilie opportunity to invest fund5 Ill the further improvement ofthe Suburb, including Central Squ&re. We arc also looking to buy additional invcstment propertie5 to incre&8e the income of the Trust. I would be very bold to make a categoric statement as to what is going to happen in the coming year but l am tonfident that the Trust will conlinue to cope with whateveT Jnay be thrown ai us. Rjymond Taylor Chairman
THE HAMPSTEAD GAKDF.f4 SUIIURB TRUST LIMITED LEGAL, ADMINISTRATIVE AND OTHER INFORMATION ABOUT THE TRUST Menjbers of the Council on I. ,8cpt¢mber 2021 F.lected member5: Raymond Taylor {Chaiman). Elected 20 September 2018. Raymond has lived on the Suburb for over 35 years and scrved on the Trust's Estate and Finance & Organisation Lommittees Prior to bccoming a trustee. He is a practicing corporate solicitor. 2. Maralyn Roberts. klect¢d 27 Scptember 2019. Maralyn ha5 lived on the Suburb far 38 ycaTS. She was eleeted as 8 Trustee 2019. She sits on the Trust's Property and Plans Committee, as well as ¢haiTing thc Trll5t'5 Grants and Atnenities CominittEe. Richard Townley. P.lected 27 Septcmber 2019. Richard, who has lived in the Suburb for 43 year5, is a fellow of the Royal IDsiitution of Chart¢Ted 8urvcyor% and has spent oyer 50 years specialising in commercial property investment. For ten yeaTS he was a Trustee of AmbitlgU5 About Autism and has been involved in various Siiburb projecrs, in particulor the introduction of the Heritage lighiing in Central Square a]]d the installation of the new flowcr bcds in the Square. Trcvor Price. Elected 30th 8ep¢¢mber 2020. Trevor has lived on the Subllib fur alinost 30 years in three separate properties. two of which underwent significant renovation in lin¢ with Tru8t guidclines. He has worked wilh the Trllst on a number of iinprovementprojects, including conscrvation work to the Gre&t Wall. Appointed member5: F.Ispeth Clcments. Appointed by the Royal Institute af British ATchitccts on l Aprs12015. Rc-8ppointed l April 2018 and 2021. Elspeth is an accredited RIFIA Conservalion Archit1 and a fortncr mcThbeT nf RIBA Council. She works in partnership with David Portcr as Clements & Porter Ar¢hit¢ct5, founded in 1979. She is a180 Chairtnan of the Highgate Sociery Planning Groiip and wrote part of the Highgate Conservation Are8 Appraisal. Dr Tyc Blackshaw. Appointed by the Viciorian Soci¢ty on 7 January 2020 Dr Blackshaw recently served on the Planning Committee of the Highgate Society. She also previously lived in Hainpstcad Garden Suburb for a decade. 7. Jonathan Ross. Appointed by the Law Society on 18 Jllly 201 l. Re-appointed 18 July 2014, 2017 and 2020 Jonathpn 15 i solicitor and is head of property liligation at Forsters LLP. where his clients include a number of swtion 19 QTgaiiization% and estates. He writes regularly for the property press. Jonathan is not now a resident but he was brought up on the Suburb and hi5 father is a past member of the Trust Council. 8. Alison Rlom-cooper, Bsc MPhil MRTPI. Appointed by ihe Royal Town Planning Institute on 12 April 2014. Reappointed 12 April 2017 and 2020. AlisoTr has ovcr 30 yeaTS' experience of planning issues across both ihe publie and privat¢ Sectors. she ha5 a particular interest in training and communications. She is currently Assistant Director Strategic Place and Planning for a local autholity. Electiotl 4nd Appointment to the Collncll.. There was one vacancy flir election following the end of David While's double thr¢¢-ye2r term. A single c2ndidat¢, Trevor Price, was proposed and elected unopw)sed at the AGM on 30th September. Registered 01¢¢ The regisiered uffice of the Trust is 862 Finchley Road, London NWI16AB, telephone numbers 020 8455 1066 and 020 8458 8085, einail.. lndil@hgslrust.org website.. www.hgsiTUSt.org. The office i5 normally open Monday to Fi'iday 9am to spin, ¢xcluding public holidays.
THE HAMPSTEAD CARDEN SUBURB TRUST LIMITED LEGAL, ADMINJSTRATIVE AND OTHER INFORMATION ABOUT THE TRUST (continued) Trust Company membership At 5 April 2021 theTe were 694 member5 of the Trust Company and 58 associate members. Meinberghip of the Trusi is open to adults who have bcen Continuously resident on the Sublli'b for over three years. Other adult rcsidenis may join as associate members. Applications are welcom¢ (there i5 no chdrg¢ or subscriplion, and each inember's liabilily is limiied to a guarLintee of £5). The <ipplication form can be obtained froin the website (www.hgstrusl.org} or from th¢ Trusi office at the address above. Trust Council's respon5ibilitie% The Trusi Council meets ten times a year to direct and oversee the WOTk of the Ti'ust slaff in s&feguaTdingF the chardcter aTKI a¥nenities of the Siibllrb. The Trust Council comprises four Inembers elected by residents who are Ineinb¢rs of the Trust and four members ppointed individually by the Law Society. the Royal Institute of British Architects. the Royal Town Planning Institut¢ and tht Victorian Society. These positions are all unpaid and carry responsibilities and duties requiring considerable time, und¢rstanding nd ¢ffort. Counell members. induction and training New Council members are given written inforinatinn including the Scheme of Mdnllgemenl, Articles of Association, Annual Report and Charity Cominission publications including The Essential Trusteo. Induction gessions and wurses 4T¢ offered. tdilf)red to individual needs and cot)cerns. New Council Inembers are encouraged to tour the office and meet all the staff and io attend the Property and Plans Coiwnittee to gain insighi into th&t itnportaTrt aspeLt of the Trust's work. Honorary Life President The Trus¢'5 Honorary Life President is Dr Mcrvyn Millcr PhD. BA. BArch (Hons), MUP, MArch, FRIBA, FRTPI. Honorary Accounts Adviser The Honorary Account5 Adyiser 15 Robin Marks Bsc {Hons), AMIMA, AA'f, TF.P. Volllnteer Members of Advisory Commillees (in addition lo Trust Council memb¢rs): Estste Cotwnitt¢e'. Alan Bwdney, Judith Chaney, Laurence Wolff Finance Committee.. Jeremy CIyDes, Robin Mark5, Paul Hartl¢y, Tony Ghil¢hik Grants and Amenities Committee.. Rosemary Goldstein, Jonathan Seres, Lollige Scheller, Ron Finlay Propety and Plans Committee.. Ann Sp¢ncer, Helena Bones. Tony 7,eilinger (alt¢mate) Staff Th¢ following people are currently employed by the Trust.. Full-time: Simon Henderson CEO and Company SecTetary Jane Hol'der MRICS Estate Manager David Dayidson BA (Arch), MA {Ar¢h Cons) IHBC Archit¢ctUTal Adviser Paul Capewell Bsc (Hon5} InfoT]nation Manageinent Inforination and Coinmunication5 A55lStant James Phillip5 Assistant Architectural Adviser
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED LEGAL, ADMINISTRATIVE AND OTHER INFORMATION ABOUT THE TRUST (contined} Staff (eontinued) Jessie forder Busine%s Support Officer (from Nov 2020) Joc Mathieson Architcclur&l Support OfficeT (from June 2021) Lauren Marsh Assistant Estate Manager Part-time: Michael Tutton Dip Cons, PgDip {Bldg Cons), IHBC Assistant Architccturul Adviser Susan Samuels Estate Management Assistant Patricia Lewin Credit Control In addition the Trust rurrently regularly uses the services of the following part-time independent C0115ultants: Ann Marsh BA Dip Arch, IUBA AKhit¢ctUTal Consultant (retired Sep 2020} Monica Knight Dip AT¢h, Bsc Arch, Grad Dip Cons (AA), ARB Arehiteclural Consultant Harry Fisher FMAAT Bookkeeping Consultant (to Sep 2020) Professional advisers Solicitors Lee, Elolton, Monier-williams l The Sanctuary London SW I P 3J-I' Bankers HSBC Bank plc 897 finchley Road Goldcrs Green London NWI 17NX Accountants (from Oct 2020) JS2 Limited One Crown Square Church Str¢ct East Woking Surrey CJU216HR
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED LLC.AL, ADMINISTRATIVE AND OTHER If4FORMATION ABOUT THE TRUST (continued) Proftssional advtser5 (continued) Auditors Trlaysmacintyre LLP 10 Quo¢ii Street Place London CC4R IAG Arboriculturalist Anthony George Dip l.A, MLI, FRSA Anthot)y Georgc and Asso¢iates The Old Brick Iqouse Village Rijad Domey Windsor 8L4 6QJ
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED REPORT OF THE COUNCIL I'he Council members, who act in thc role of directors and trustees, presetit their fifty-Iliii'J annual Ptsrt, together with the audited accounts of the Trust for the year ei)dcd 5 April 2021. For ihe putP05es of this rep(Trit th¢ terin 'TTUSt" is used io mean the company whosc diTCCtOls are referred to as'the Irustees" the board is referred to as'the Council" Object and princip81 oetivity The object and principal activity of the Trust is to maintain and preserve the character and amenities of Hampsiead Gard¢ Siihurb. In 1967. legislation was passed that obliged landlord5 to sell their freeholds on demand to long leaseholders. 'fhis created a new siiuation for thc Trust, as for other landlords, as il was constituted at that time. In 1967, thei"efore. it was dissolved and replaced by the present Trn5t with a new constitution. The Thew Trust has member5 (who tllU5L be Suburb residents) but nu shareholders and no owners. The trustees are not permitted to benefit financially froin their positions and on dissolution the assets of the Trust would be at the di5po$81 of the Charity Commission. The new Trllsi had two principal functioNs that it continues to Cdrry out to the present day. l. The new Trust was not obliged to dispos¢ of all it5 assets but holds them and its unenfranchised leaseholds in trllstfor ull the residents of ilie Illlmpslelld Garden Suburb incli¢ding ihe Freehttl(lers. It manages these assets so as to maximize theiT value and devotes any operating surplu5 to the mairJ(enance of its financial position and to the charitable purposes described in lis Memorandum of Association. 2. The new Trust was also designed so to enable it to opeTat¢ a Scheme of Management as provided for in section 19 of the Leasehold Reforin Acl of 1967. In 1974, the High Court authoris¢d a Scheme under which the appearance of the bthilding and grounds of 311 enfranchised properties is controlled by the Trust and which the 'frust still operates. The prpOSe of the Scheme is lo ensuTe tliat the Suburb's archilectural integrity and its amenities in terms of ils trees, open spaces and gardens are preserved and that tjnreasonable dev¢lopmcnl is prevented. The Scheme is nded by a Manageinent Charg¢ payable by Fieeholder5. This money is held in trustfor ilie Itreeliolders fflone and remains the property of Fr¢eholdeTS until cxpended. Any surpliis musi be returned to th¢m. The SChee's finai)ecs have (o balance year on year. The Scheme doe5 not have any reserves and does not own anything. It is not a l¢gal entity, simply an accounting device. Sinc¢ 1974, the great majoi'ity of the houses and inany of the fl&is on the Suburb have enfranchised and fall within the S¢heme of Maiiagement, the nurnbeT8 IIICTcasing year by year. In 1988 the Tnjst acquired the fireholds of all Èhc long leasehold properties on the Suburb (in¢luding most of the blocks of flats) froim Ashdalc Land and Property Company Ltd. Through these leases, the freehold ownership of I l allotment 5ltes, 27 unadopted roads. somc 50 other communal opcn spaces and the Scheime of Management itself, the Trust can maintain a unified control over nearly all Suburb properties and the trees, hedges aiid rnany of the communal areas aToulld them. Control of the public highways and the larg¢T open spaces r¢5ts with the London Borough of Bamet and Transport for London. Stat115 The Trust is a company limiied by Euaiantee (registered in England number 928520), not having a share capital and is registered as a charity (Number 1050098). It is governed by its Memorandum and ArtiLles ofAssociation dated 8 March 1968 and Inost recently amcndcd on 17 septe1ber 2008. Until 15 January 2007, it was known as The New Hajnpsteail Garden Suburb Trust l.irnited. The Trust's charitable purpose5 caver the advaneement o( the arts, culture and hei'itage, environmental protection and improveinent. Hamp8tead Garden SubuTb is internationally recognised as tlie finest and best reali5ed example of English twentieth-century doinestic architectUTe and platming. The public benefit extends far beyond the 16.000 or so residents of thc Suburb to the international Loinmunity - lay and professional with an interest in aTchitecture, planning and social history. The lessons to be l¢ai'nt from the ethos, history, landscape and architecture of the Suburt) benefit both present and futurc g¢nerations.
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED REPORT OF THE COUNCIL (continued) Organisational 8tru¢ture 'I'he 1'rSt Council is rcsponsible for decisions ofthe Trust. The TTUStCoiincil is advised on relewdlltrnatters bythe Property & Plans Coimmittee, binance & Organisational Coinmittee, 85tate Committee and Grants & Ainenities Committee. Policies Arc developed by scnior staff (Chief Cxecutivt, Aychitectuitl Adviser and Estate Manager) and the advisory eominitte¢5. Dcci5ion5 &TC impl¢rn¢nted by staff. The Trust's long tcrm strategy is to undertake.. Regulation of change on the Suburb through vigorous exercise of the Trust's obligations and rights under the Scheme of Management (for enfranchised freehold properties) and through the tern)s of the leases (for property where the Trust retains the freehold reversion) Dir¢cl, plased inatgeMe[bI of the residiial estate, including comtnunal open spac¢s, private roads and allo¢m¢nts An effective architectural advisory service for residents, owners and their professional agents and contractors An education and awareness programme through walks, talks, publications, broadcast and new media A rnod¢st prograTnine of charitable donations to Suburb good c&u5es Management and enhanceinent of the Trust's reserves to eliminate revenue deficit permanently Ma1 developtnents in 202012021.. The COVID-19 partdemic and consequential series of lockdowns inaterially disTUPted the planned business olthe TTU5t for part of the year, bringing a temporary hall to garden maintenance, site and othcr inspections and the usc of thc tennis couits. As many of the community cvents run by Suburb orgartisations had to be cancelled, the TTUSt was unable to Enake its Usual level of grants, although the improved situation later in the year dhd allow a late release of grant fi]nding. The Trust adapted quickly to the new cireumslanc¢s, enobling hoine working froin the start of lockdown and keepillg Inost ¢ssenti&l op¢rations running at near-normal level. The necessity of r¢mote WQTking &lso pr¢cipitated s¢v¢ral dcsir¢d operatioval improvements, including a 5ucres5fv1 Imove to digital planning appli¢ations, approvals and rocords, on-line plawiing FAQS, fvlly on-line banking, and online council, committee and AGM m¢eting5, Wlth ¢on5equential cost 5aving5. These and other efficiencies are Dow embeddeil in the I'rust's operation and will be built on in the coming year. The pandemic also affected the anticipated income and expenditure of the Trust over the year. Income from applications for Tnjsi Consent on freehold properties was over 150/0 of the projecied budget, no doubt a result of homeowners wishing to make best use of their properties during lockdown and a widespread move to home working. This will be reflected in the increased rebate for 2021122. Concomitant increases in leasehold property applications and sales of Trust assets bolsiered the Trust's own funds. Expenditure was less atTected butgai'dening charges were rebated for work not undertaken in the first lockdown, and administrative CLlSts wele lower while ihe Trust Office was closed. Other devclopmenls that did go ahead included Agi'eeing a draft lease with London Borough of Barnet to take back ownership olcentral Square in summer 2021,. Awarding grants to seven local organisations that benefit the Suburb Pursuing and defeThdiiig legal cases concerning unconsented alterations to Suburb propeity Devclopment of additional guidanee oth secthTity and ¢le¢tric car charging points Appainting new extei'nal accountants to improve financial op¢ration and rcporting Appuinting a new IT support contractor to iinprove System and data security El¢clion of a new truslee The Trusl Council confirms that it has coinplied with the duty in seclion 17 of the Charities Act 201 I to have due regard to th¢ public benefit guidat]ce published by the Commission in ddemiining the activities undertaken by the Charity. It is through care, regulation and control over the Suburb that the Charity is able to provide the public beiiefits identified bove not oiily to residents but also to students of and VI5tOl.5 to the Suburb. The care, regulation and control aspects of the TnJst'5 work ar¢ detailed below.
THE HAMPSTEAD GARDEN SUIIUKJI TRUST LIMITED RÈPORT OF THE COUNCIL (conliDu¢d) RcgulAtion: Defcnding the Suburb Applications In 2020121 the Tru.%t reccivcd 257 applitations (compared to 196 in 2019120) to change the extcrnal appeardn¢¢, use ur structure of PToperty, reflecting thc impact of ihe pandemic noted above. There were five Dew application5 for dtmolilion and Yebuilding, of which three rcmain unresolved at preseni. In addition. seven applications were received which involved the construction of. oi. extension to, a basement in an existing property (compai'ed to six in 2019llO). ofwhich three were given consent and four are unresolved. The successful completion of the Bule Mews Phase I develupment reflected the Trust's insistence that any new development should respect the unique chara¢ter of th¢ Subllrb. This hag s¢t the bar lor several other approaches to redevelop Suburb siies during the year, including the proposed redevelopinent of the Esso filling station on FinLhley Road, for which ihe Ttust undertook a tnajor consultation exercise with local Irsidents. This application reinain5 open al the time of writing. Three new appli¢ations involving the creation of new hardstandings were received (compared to two in 2019120). Of these, ot)e was refused and two are un$01ved. Advice 2nd Enforeement Throughout the ye<ir, the Trust's staff gave practical guidance (o residents, potential i'esidenls and their professional advisers on matters including preliininary advice regarding applicatj0115, routine care and maintenance work. legal Inatters, the piuning and felling of trees and the care of landscape and hedges. On-51te inspections had to be deferred in the early IDonths ol-the pandemic, but were resumed over suminer. M&ny olthe Subui"b'5 l]105t prominenl Èrees are 5eveTal hundred years old and were carefully integratcd into the suburb's plan froin ihe outset. Application5 to fell malure trees are therefore a matter of constant concern to the Tnjst, patticularly givet) the increasing PTessure froin property insurers. Trust staff work closely with technical consiiltants, residents and the local authority, including Ward Coiincillors, to find mutually acceptablo solutions that avosded unnecessary felling and pres¢rve ojie the Suburb's tn05t distinctive assets. The I'rust will always attempt to negotiate the reinstatement of unauthorised altcrations to Suburb property, partieularly in Cases whcre a new applicatioll is received for work on a house with an cxisting iDfringeinellt. Four infringcmcnL% have been resolved and lifted during the year. Nine new infringements have been recorded. Awareness and Education The Trust endeavnur.4 to proinote understanding of thc spetial nature of ihe Suburb to residents and otheTS through talks, guided ioiirs and writt¢n and illustratcd material. The Trust Council considers that widcr awareness and appreciation of the Suburb. as an important landmark in the evOltIon of domestic architecture and Town Planning, Is ¢Tlti¢al to its Continued preservation. -rhe Trst aims to keep others inforined of its work 3nd rcsponsibilitics through its website and social media channels, as well 8$ throughprinted publications and engaging with thirdparti¢s. As wcll as maintaining relationships with organisaiions c105e to hnTllC, the TTUSt welcoincs interest and visits from further afield. The COVID-19 pandemic disrupied plans to support a In8jor series of Suburb-related exhibitions and events in Rotlicnburg ob der Tauber, and t]ie usual walking tours of the 8uburt) could not be run during lockdown. The planned exhibition on Suburb architects in collaboration with Suburb Archive5 scheduled for May 2020 was siinilarly postponed but will now go ahetid in S¢ptember 2021. Malntaining the fabric of the Suburb Altlioutsh gai'den Inainte]vdnce work had to be suspend¢d during the first lockdown, the TTUSt'5 term conlractor was able to work through the rest of the year and provided valuable on-site assistanc¢ to the TTU5t when staff were I'equired to work fvom hoine. Despite ihe restrictions iinposed by COVID-19, the annual iree inspections weT¢ carried out in September. 104 consents for tree work have been issued digitally in-year after initial virtual or on-site inspectiQlJ5. The finalisation of ti)e Central Squate lease with Bamet Council will enable tho Trust to have yjtater contt'ol over this iinportant area.
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED REPORT OFTHE COUNCIL (continued) 'I'he temporary closure of the tennis coiiris in linc with government guidelines ¢au5ed 50rn¢ ¢oncerTJ to residents. 'fhese were however reopened as soon as legally possiblc and Saw heavy usagc through the rest of summer and aiitttmn. The Trust responded io user feedback by adjusting the booking pcriod to improve availability. 'lThe allotmcnts rcinained open throughout the pandemic, providing a valuable resource to residents COTTrfin¢d to home. Increased interest during lockdown means that all plots are now taken and there is a waiting list. Grants The Trust provides grant aid to Incal bodies whose activilies are likely to be beneficial to residenis and preserve the character and ainenity of the Suburb. During 2020121 th¢ Trust, advis¢d by th¢ Grants & Amenities Commite. made seven grants totalling £20.057. Gr2nts were made to the value of.. £15.000 to the Parish of St Jude-on-the-Hill. £1,100 to Northway Gardens Organisation. £1,000 to HGS Heritage,. £433 10 ihe HGS Archives Trust., £424 to the Abbeyfield Society. £100 to th¢ Friends of Abbeyfield, Ltnd £2000 to Br(x)klands Junior School PA towards a new library. Voluntccrs In 202012021, the Tnt5t has again benefited from input to its work by volunteers including non-Trustee members of the Property & Plans Committee, the Estdte Committee, the Finance CommiLiee and the Grants & Amenities Coinmittee. The naines of those who served on th¢ Trust's advisory commitlees are given above. Altogeiher there are 14 residents serving on the Trust Council and cominittees. This does noL exhaust the list of those who help the Trust in VlouS valudble ways. Financi&l ffl8tters The form in wliich the statement of financial adiviti¢S IS Set out on pag¢ 16 complies with the Chatity Commi5SlOn reqthirements io relate expenditure to the Tiust's obje¢tives ratheT tlian under heads of expenditure. The siatejnent also dLtails tlie finances of the Scheme of Manageinent as well as those of the TTU5L although each is separately fjdentificd. As a supplement to d&sist members and charge payeTS, Ihe 'frust has includ¢d, as an appendix to the Teport and account5, a analysis of the Miinagement Charge, which gives a breakdown under heuds of expenditllre (see page 30). This appendix doe5 not form part of the report and accounts. The Trust'5 finances Th¢ Trust has a dual obligation. All its assets are held in trust for the benefit of all Suburb residents= FreeholdeTS, leaE¢holdcrs, tenants and others. 'fhe Trust also operates a Scheine of Management linder Section 19 of the L¢asehold Reform Act 1967. The Scheme 15 funded by a Management Charge paid by enfranchised Fr¢eholders. These funds are accounted for scparatcly froin the TTust'5 owl) property and are held in trnst for the Freeholders until expeh)ded. The Trust is not permitted to profjt froin its operation of the Scheme and any 5Utplus on tlie Management Charge in a particular year is reliimed to the Freeholders. Any funds rccoived undeT Other provisions of the Schci))e are held in irust by ihe Ti'usl to be applied in subscquent ycars in the inanner authorised by the Scheme, which is mode for the purpose of ensuring the maintenance and pr¢s¢rvation of th¢ Suburb. A. A55ets held in I'ru5t for ill rcsidcnts Revenue is derived froin the ground rcnts and other chaTgc5 relating to the 'frusi'$ leascd properties, which are geneT&IIy falling in real tems. In the course of 2020121. the Trust's rescrvcs increased by £625,181. In¢ornc is dcrivcd fram thr¢e souices. Part is from the sale of frecholds and lease extensions, as required by the Lcasehold Reftsrn) Acts. Part is in the form of one-otT payinents for variations to leascs and covenants. Together these total £530,997. Part 15 COll8titutcd by donations totalling £692, incliiding gift aid, rcceived from residents during the year. It will be notcd that the incre&%e i reseivcs is greater ihan ihe receipts from the sales of assets, for the second yeai. running. Th¢5c asset5 aTC not rcnewable and the net receipt5 must be husbanded with grcat care and invested to pi'ovide the Trust with a securc income to SUPPOrt its work for the indefinite future. The Couneil considers that the overall state of the Trust's financial affairs is once again strengthened, but Still remains capablc of further improvemenL The Trust's assets are available and adequate to ]rI] its CUTrent obligations.
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED REPORT OF THE COUNCIL (contiThued) B. The Schemc of Management A5 Stated above. Ihe Schcme of Management 15 fvnded by Frccholders and lis finances are accounted for scparately from those Of the Trust itself.. the fvnds within the Scheme of Management aTC not thc property of the Trust. Income and expenditure undcr the heads of the budget for the ye&r wcre the cquivalent of an actual charge for thc year of £147.98 per household. This is bclow the estimated charge of £187.24 and thc cquivalent of a rebate to Lhaige payers of £39.26 over th¢ full yettr. This will be set against the estiTnated ¢haTge for 202112022 when th¢ ManageTnent Charge bills are sent out IT) Augusvseptember 2021 I'he Managcment Chdrge is a land charge that runs with the property. The law requires that rebate5 must be Tnade to the current own¢r cven when Ihey k)re made in respect of costs ineurred before a transfer of ownership. The Tivst maini&ins a credit control policy to rninimise arrears in-year. This includes reclarnation through the County Court in cases olpersi5teiit default, leading to a CharbFing Order on the propety.. 12 Court applications were made in 2020121. In cases of genuine hardship, the Trust can offeT various 5t&ge payinent options or a hardship grant.. one grant was applied for and paid in 2020121. Trust Council InfoTmation regarding the Trust Council, includingy details of those Jneinb¢rs 01¢¢ during the ye&. and at the date of approval tsf this reporL is shown under Legal, Administrative and Other Information. Couneil mcmbers, respoD$ibililh&$ in respect of the prep¥r2tion of geeollnts Th¢ t1.Steel (who are also directors of T]ie Hainpslead Garden Subui'b Trust for the purposes of copanY law) are responsible for preparÉng the Report ol. the CotJnLil and the financial stalement5 in accordance with applicable law aDd United Kingdotn Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial stateentS for edcl) findllciiil year that give a twe and fair view of the state of affall5 of the ¢haritable ¢oinpany and OF the incoining IESource5 and application of resources, including the inc0e and expenditure, of Uie charitable company foi that period. In preparing these financial statements, the trustees are required to- Seleet sllitAble accounting policies and then apply them ¢on5iStently Observe thc mcthods and principles in the Charities SORP Mak¢ jisdgements and estimate5 that are rcasonable and pn]dent State whether applicable UK Accounting siandards have cn followcd, subject to any material departures disclosed and explained in the financial statements Prepare the financial statcinents on a going ¢ont¢rn basis L4nless it is inappropriate to presume that ihe charitable coinpany will continuc in busincss. The truslees are reEponsible for kceping proper accounting records that disclose with reasonable accuracy at any time the rinancial position of the charitable company and enable thein ensure that the financial stateinents coinply with the Companies Act 2006. They are also respunsible for safeguaiding the assets of the charitable coinpany and hence for taking I'¢asonable steps for ihe prevention and d¢t¢ctiun of fralld and other iti"ekJuldrities. In so (ar ag trustees are aware.. TheiE is no leVant audit infoiynation of which the charitable company's auditor is unaware; and The trustees have tsken all steps that they ought to have taken to make theinselves aware of any relevant audil infom)ation and to establish tliat the auditor is aware of thai information. Reserves and Investment policy Until 2005, the Trust's assets were steadily depleted by subsidibing ihe operation OC Ihe Scheme of Mw)Jgem¢nt. Th¢ withdrawal of the subsidy frotn the Scheme of Manageinent in that year arrested the deterioration of the Ti'ust's fiiiances. Since 2005, revenue has been generated by the sale of assets which were on the balaiice sheel at book value and by fee5 rTOln the variation of covenants whicli had no assi&Jned balance sheet value. The Trusl's investinent policy is to use the cash rToin diese balan¢¢ slieet 'crystallisalions" to purchase residential property on the Suburb. '1lie in¢oine from these investsnenls will pi'ogressiv¢ly match the Ti'u5t'5 lonui_teTm ubligati(Trns to tontribule towards shared Costs fi'om it5 own nds and briiig the operating Jccoiiiit, in chronic deficit fur mitny years, into balance. The Trust currently has nine inveslinent propei'ties and a further property is under consideration foi. 2021122. 10
THE HAMPSTEAD GARDF.N SUHURB TRUST LIMITF.D REPORT OF THE COUNCIL {continlled) The fundamental financial objective of the Trust is to restore the level of its investable assels to a level that will enable it to producc an increasing real income, independent of the Scheme of Management. The Trust has made good progress towards thi5 goal over the last ten years but it will need further years of well controlled expenditure and investment before il is firrnly cstablished. In effect, the Trust is rc5tructuring its balance sheet. its freeholds have been subjeci to compulsory sa]es since 1967 and the realisations from these sales will eventudlly terminaie; meanwhile they have some way to I'un. These freeholds are held at book value so that their value 15 understated in the aecout)ts. The Trust also dei'ives revenue frvm variations in covenants. The Trust's experience of these transactions suggesi thai they will deeline but that, for the foreseeable fuliire ihey will make it Possible to reinvest balallce sheet asset5 $0 as to iinprove th¢ Trnst's financial position. Th¢ intention is that this Should be continually strengthened by careful manageinent. Financial M8Dagement t)uring the y¢ar, th¢ statcd valuc of the Trusi's balance sheei grew by an amount, £625,181 greater than ihe deficit on its op¢rations, {£49,658), after stripping out the £530,997 surplus on freehold sales. licences and variations and the net gains on inve%tment% of £78,695. The deficit on operations figure is calculated by taking the gross income under all nds except the Scheme of Managicment befoi"e deducting the expenses of the Same fL)nds, the sale of assets and any gain on investments. The aim is to show how rnuch of the one-off salcs OF ass¢ts aiE being us¢d in Jnnual running costs. £2,017,179 18 held iii the Trusi's general fund {scc note 22). This incliides the Trust's working capital, the calls on which include ihe funding of the deficit in the cash flow of thc Scheme of Managomcnt that occurs in the course of Ihe year. £149,243 is held in iests'ictcd funds (see iiote 20). The Council has designaled ihose funds that are intended to be held foT the long term and that ¢ot15titut¢ th¢ foundation of the Twst'5 future income. Pn)perly inveslments in these designated funds are intended to be held for the long terin and expenditure from them is intended to be limitcd to amounts that do not oxc¢¢d in any one ycar more thali half the real growth in capital and incoine. Funds designated by the Trust Council total £3,439.204. Thes¢ r¢sourc¢s &r¢ in the form of.. £3,182,304 in property assets and £256,900 of cash on deposit (see note 2 la.b and c and 22). The Trust doe5 not have any obligations iti respect of a defined benefit pension scheme. Pay And remuneratio The tnistees coinprise the TIst Council. The scnioi. mhnagement team comprise the key management personnel of the Trust. No trustees received reTnuneration in the year. Thc remuneration of the senior imartagemenl team {Chief Executive, Ar¢hii¢ciural Advsser, FAtate Managcr), along with that of all stafF, is Tevicwed at least annually by the Finance & Organisaiion Lommittce who make recommendations to th¢ Trn$t Council for their deei%ion. The finance & Orgathisatiot) Committee are asked to- Review Tnist staff salarieslconditions and make %ure rccornmcnded am¢ndm¢nts ar¢ appropriate to ¢nsurc that salarieslconditions remain competiiive. Recoinmend the a[Ual perceThtage increase in the payroll for each member of staff (which can be zero) taking into ac¢ount ¢hanges iti rol¢vant publislied indices of living cost5 {such a5 CPI, RPI and Living Wage). Recoinmend any consolidated pay awai'ds and staff salary incrE25es outside of the antjual review process. taking into account the recommendations Te¢¢iv¢d fi'om time to titne by the Chief CxecuLive. Recominend any non-consolidaLcd pay awards (bonus), t&king into account the recommendations received from tiine to time by (he Chief Executive. R¢coinin¢nd pcnsion aang¢inCnts and ensure that conlractual terins on termination are fair to the individual and th¢ TTt]st, that poor performance is not rewarded and & duty to mitigate loss is I'ecognised. The appropriateness and relevance of the reinuneration policy is r¢viewed annually, including reference to comparisons with other charities and property companies ensuring ihe Trusi remains sensitive to ¢h¢ broadei. issue5 ¢.g. pay and ¢mployinent Collditions elsewhere. Rlsk management The frust Council emberS have reviewed the Trust'5 Tisk m&nagerntnt strategy. This included examining ihe -frust's building, public liability and professional indeinnity in5uI"ance, banking aTrangeinent5, healih and safety issues, etc. The Council mcinbeT5 consider that procedures in place to Injtigate any risks to which the'l'rust could be exposed.
THE HAMPSTEAD GARK)F,N SUIIURn TRUST LIMITED REPORT OF THE COUIYCIL (continued) The principal risks and uncertainties identified by ihe Trll5t are f(Jllows.' a successful legal Llaim against the Trust arising from its role as landloTd or its administration of the Schem¢ of ManLtgetnent', damage to real property. failure of or severe attack on IT system%; and fraud. The plans and strategies for managing these risks are.. professionally qualified and trained staff. advicc from relevant professional advisors {strengthen¢d in year}, reguldf Teview of cases by truslees.. Healt]i & Safety risk SessM¢nt and polity,. regknlar inspection and repair regim¢; apprc)pri&te policies for the use of property. regular maintenance of propcity., appropriate liability and other insurnnce., Tegular back up of daia and an IT maintenance contract (strengthened in year)- regulay upgrades of IT hardware and software-. fjnancial Controls and an annual independent audit. Pl&ns for future periods The long-term financial objectives of the Trusi are to hUsbd and consolidate its own Irsources, so as to generate revenue tu enable it to preserve the character and an)enities of the Suburb as well as io ensure its long-term futiir¢ as the Subvrb'5 regulatory body. With respect to the Scheme of Management, the Tru5( will ensure that its expenditui'es are ¢ontroll¢d so as to be cDnslStenL with the requirements. olthe Schen)e of Managetnent and endeavour to keep thein within a pr¢di¢ted Tange consist¢ni with Lhe actual needs of administering th¢ Scheme of Management over time. In line with th¢ Jims of the reserves and investments policy and the risk management strategies in place, there is reason to believe that the TTus¢ is a Going Concern at the date of approving the report and accounts. I'he financial iinpact from the COVID-19 pandemic will continue lo be monitored closely through the ¢oining year. The budget for 2021122 already takes into account il)e likely iinpact ofknown threats to incoine, and reinedial measur¢s will be put in place as and when necessary, to ensure that the l Nst remains a Gog Concern and can maintain its core busincss activities. Auditors Haysmacintyre LLP, chartered a¢countants and registered auditors experienced in the charity ctor were Ir-appointed in September 2020. Haysmacintyre LLI> 15 willing to continue in office. A resolution will be proposed at th¢ Annual General Meeting for the Louncil to appoint and fix the auditors, remuneration. By order of the Council Simon Henderson Secietary 12
INDEPENDF.NT AUDITORS, REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMII'ED Opinion We hdve audited the financial statements of The Hampstead Gai.den Suburb Trust Limited for the year ended 5 April 2021 which coinprise the Ststement of Pijiancial Activitie5, Balance Sheet, Statement ofcash Flow5, and note5 to the financial stateinents, including a sllmmary of significant accounling policies. The fjnancial i'eporling framtwork that has been applied in their preparation is appli¢ablc law and United Kingdom Accounting Standai'ds, incliiding binancial Reporting Stdndard 102 Thc) Finuivciul Reporlin¥Siandardapplic¢7ble in ihe UK aKdRepublic oflreland{United Kingdotn Generally AccepÉEd Accounting Practice). In oui. opinion, the fjnancidl stat¢ments'. give a tTU¢ and fair view of the state of the charitable company's affairs as at 5 April 2021 and of the charitable coinpany's iiet moveinenÈ in funds, including the incoine and expenditure, foT the yeai. then ended. have been properly prepared in accordance with Uniled Kingdoim Generally Accepled Accounting Prllctice; and have be¢n prepared in accordance widi the require]nent5 of the Con]panies Act 2006. Basis for opinioii We conducted ovi. audil in accorthnce with International Standards on Auditing (UK) (ISA5 (UK)) and applicable law. Our responsibilities undei. those Standards are further described in the Auditor's re5poI)sibilities foi. the audit of the financial statements section of our report. We are independent of thc charitable cornpany in accordance with the ethical requireJneThts that are relevant to our audit ol the financial %tatements in the UK, including the fRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requircincnts. Wc believe that the audit evidence we have obtained ig suffjcient and appropi'iate to provide a basis for our opinion. Conclusions relating to going concer In auditing the financial stateiments, we have concluded that the trustees, use of the going concern basis of accounting in the pjtparatiot) of the financial statemenis is appropriate. Based on the work we have perfomhcd, we have not identified any material uncertainties relating to events OT conditions tliat, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going conccrn for a p¢riod of at least twelve month5 from when the financial siatements are Authoi'ised for issue. Our responsibilitie5 pnd the r¢spoll5ibiliti¢s of ihc S(ceS with respect to going ¢oncem are describcd in the relevant sections of this report. Other information The trustees are rcspon5ible for the other inforination. Th¢ other information ¢omprist$ the inforniation included in the Report of the Council. Our opinion on the financial lattcnt% doe% not cover the other iTtfurtnation and, exeept to the txtent otherwise explicitly stated in our report, we do not ¢xpr¢55 any fonTr] of psSunce conclusion (hereon. In connection with oui. audii of the financial stateinents, our responsibility is to read the other information and, in doing so, con%ider wheiher the other information is Inaterially inconsistent with the financial stateillent5 01. our knowledge obtained in thc adit orotherwise appears to be Inclterially misstated. If we identify such Inaterial inconsistencie5 or apparellt material misstatements. we are required to determine whether there is a material misstateiment in the financial stat¢mellls or a mateTial misstatement of the other information. If. based on the work we have perforined, we conclud¢ that thei'¢ is a material misslatement of this other Informatio we are required to Irportthat fact. We have nothingto report in ihis regard. Opinions on other mallers prescribed by the Companies Act 2006 In oui. opinioi), based on the work undtrtdken in the Lourse of the Audit.. the information given in the Report of the Council {which includes the directors, report prepared for the purposes of company law) for the financial year for which the financial statements are PlEpared is consistent with the financial stateimenls. and the dircctors. rcport included within the Report of the Council has been prepared in ac¢ordance with applicable legal requirements.
INDF,PF,NDF.NT AUDITORS, REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED Matters on whleh we are required t¢) report by exccption In thc light of the knowledge and uF)derstanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Council (which incotyorate5 the directors. re)rt). We have nothing to retK)rt in respect of the following matters in relation tu which the CompaThies Act 2006 requires us to report io you if, in our opinion.. adequatc accounting records have noi been kept by the charitable coinp&ny' or the charitable compmy financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees. remunei'ation specified by law are not made. or we have not receiyed all the inforination and explanations we require for our audit.. or the trustees were not cntitled t(Tr pr¢par¢ thc financial statcments in accordance with the small companies, regime and lake advantage of the small companies, excmptions in preparing the trustees, report and from the I'equirelertÈ to prepare a strategic report. Responsibilities oltrustee5 for the financi815tatementS As explained MOTC fully in the trustees, responsibilities sta(eTnent as set out on pagc 10, thc trL)%tec5 (who arc a150 th¢ diTe¢tors of the charhtable coThpany for the PUTpo%es of tOTnpany law) are rcsponsiblc for the preparation of tho fillpncial statements and for being satisfi¢d that they give a tnto alld fair view, and for such inlernal control as the trustees delermiT)e is nece.%sary to enable the preparation of financial stateinents that are free from TnateTial mi55tatemenL whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable company's ability to continue as a going concern. disclosing, as applicable, Inatters related to going concern and using ihc going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternlltive but to do so. Auditor's re5P(bnsibtlities for the audit of the fiN&nci21.Itgtements Our objectives are to obtain reasonable assurance about whether the financ&al statements as a whole are free from mAterial misstatement, whether due to fraud orerror, and io issue an allditor's report that includes our opinion. Reasonable assurHnc¢ is a high level of assurance, but is not a guarantee that an audit condutted in accordance with ISAS (UK) will always detect a matcrial misstatement when it exists. MisstateTnents c2n krise from fraud or etror and are considered Imateyial if, individually or in the aggre&Tat¢, they tould reasonibly be expected to influence the econoinic decisions of useTS taken on th¢ basis of these financial stateentS. Iiyegularitics. iiicluding fraud, instan¢¢s of non-complianc¢ with laws and regulations. We desi procedures in line wilh our responsibilities, outlined above, to d¢te¢t Inaterial misstatements in resp¢¢t of ityegularities, including fraud. The extent to which our proceduTes are capable of detecting irregularitie5, includiDg fraud is detailed below.. Based on our undeiBtanding of the ¢haritable coinpany and the environment in which it opeTat¢s, we identified that the principal risks of non-compliance with laws and regulations relaled to the Companies Act 2006 and the Charities Act 2011, and we considered ihe extent to which non-coinpliance might have a material effect on the Iinancial siatcments. We also COn5id¥red those laws and regulations that have a direct iinpact on the preparation of the linancial siateinents such as the Companie5 Act 2006 and the charities Act 2011, and other factors such as compliance with the scheme of Inanagement and payroll tax. We cvaluated management's incentives and opporthnitie5 forfraudulent manipulation of the financial statements (intliiding th¢ risk of overiideofcontrols), and detei'mined thatthe principal risks were ielated to revenue recognition and the valuatiot of inve5tmeni pi'operties. Audit procedures perforilled by the engage1ct tearn included.. Inspc¢ting correspondence with regulators and tax authoi'itics., Discussions with manageinent including consideration of known or suspected instances of non.compliance with laws and regulation and fraud. Evaluating management's controls designed to prevent and detect irregularitie5- Revicwed the basis for and allocations to the scherne of Inanagement.. Identifying and testing joiirnals, in particiilar.joiiiiJal entrie5 Posted with uiiusual account combinations, POSting5 by unusual useis or with unusual desci'iptions. and Challenging as5uinptions 3nd judgements made by management in their critical accounting estiinates including reviewing all documenlation used and the qualifications of the Chartered SurveyoT when considering the revaluation of investinent properties in the year. 14
INDEPENDENT AUDITORS, RFPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB UST LIiVIITLD A further deseripiion of our ttsponsibilities for the audit of the financial statements is located on the Financial Reporting Coun¢il'$ website at.. Wivw.frc.uro.IiaudlIrsres onsibiliiies. This description fornis part of our auditOT'5 report. Use ofour report This report 1$ made sol¢ly to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work h&$ been undertaken so that we might stale to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullestextent perrnitted by law, we do not acceptor assume responsibility to gnyon¢ oth¢r than the charitable company and the charitable company'g metnbers, as a body, for our audit work, foT this r¢port, or for the opinions w¢ have formed. Richerd Weaver (Senior Statutory Auditor) For and on b¢half oEHaysma¢intyr¢ LLP. Statutory Auditors 13th July 2021 10 Queen Street Place London EC4R IAO 15
THE HAMPSTF.AD GARDEN SUBURB TRUST LIMITF.D Company Number 928S20 s'fA TEMENT OF FINANCIAL ACTIVITIES (Includiiig the ineoThe and expenditure accouTht) FOR THE YEAR ENDED 5 APRIL 2021 IPr¢par¢d in IiDe with Charities SORP (FRS 102>1 2020n021 c¢trAI Restricttd DcsiETrRtEd Scheme of 202IAI Fund Fund5 Noi¢21 2019tt TotAI Nott NDi¢ 20 Nuie 22 IDCOln¢ Irom: DonAliTrn$ 4ttd ItgAtlex'. I.CRsdioldcis voluiS13ry & don•ions Othor Iradig ettivi¢iu'. .£undry iiieome Inv¢stmeTrts'. Keiiial oih# inv¢sinKnt ill¢4yn¢ Chiritable Activities.. Applicalioii trccs ManagvDcnl cha¢S poyablr by fittholikrs LebTal feES i¢Lovere Eslale MBinlenanceChatges Other income: Fnxhold 58las. Iiccnccs & vBriations Ila,&dl 692 692 2.99) 3.296 3,296 4,626 203306 203206 239,600 17.832 132.799 747,468 85.858 107,556 639.455 1400} 77,738 747.468 99,807 65,455 13.949 65,455 530,9)6 530,996 431,634 Total lillybe 834,734 692 906.125 1,801,551 1,503208 EAptnOlt¥rt on: TrIS$ing fwnds: K¢nlal and oih¢r irtv¢slin¢nis ChArilAblE a¢tivities-. ReglaIon.. Applicaiiws Regtsloiion.. Aw*rtn¢sslAdvi¢dEDforc¢mmi Mainldining th¢ frabii¢ ot IhE Suburt> Ile¢harÈeablt ¢51aiemainltnin¢¢ 74.483 74.483 142.457 32,634 64.148 52.220 65.455 192249 373.038 244200 224,883 437,186 290.420 65.455 197,738 301.438 303.436 77.738 Total expe61Urt 288.940 809,487 1.098,427 1,022,807 78.695 78,695 51,644 Ntt Income bElore trAs[Cr5 624,489 6Y2 156,638 532,045 Balance of FeholdErS Mgna8emenl Charges". refuTrded TrAnsfers Ilo de5ignBte& n&$I 2&16 172,7J91 172.7391 1122 J351 21b I510,0) 510,(H)o Ntt mfjvtment 114,489 510.692 83.899 709,080 409,710 Recots¢511oiioM of fuods.. Funds byoughl forward al 6 April 2020 1.902,689 149.243 2.928.512 4,980,444 4,521,138 Funds blough forword 816 April 2020 before reiurn Ot ¢hii8e ofbal8n¢eof M¥naÈeÈneiii ChAYgtt Balance DCF¥eeholdcrs Manag¢meni ¢har8es 10 be thirgedllrefund¢dl 1.901689 149.243 2,928,512 72,7J9 5.053.183 4.643.473 2&16 FndS (Arried foral.d Rt5 April 2021 22 2.017,178 149,243 3,439204 5,605.625 4,980,444 All of the dbove are continuing activities of the Trust. The Trust had no recognised gain5 losses other than those included abov¢. The notes on page5 19 to 29 fomi pait of these accounts. 16
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED Cotnpany number 928S20 BALANCE SHEET AT 5 APRIL 2021 202012021 201912020 Notes FixfiD ASSETS Tangible assets rrechold and long leasehold estate, at cost Freehold property, at cost less depreciation Eistaic woi"k8, &1 cost less deprcciation Invutments Property invcstmcnts, initially at cost 511bsequently at fair valuc Other investments 9& Ilb} 10 12 42,215 382,265 12,187 44,825 390,346 19.107 3,010,000 256,900 2,813.000 256.333 Totalfixedassels 3,703,567 3,523.611 CURRENT ASSETS Deblor5 Management Charge for Scheine of Management rebate Other debtors Cash at bank and ID h&nd 14 (156,6381 {72,739) 14 210,354 1,973,111 188,373 1,367,349 Total ¢uYrenl assets 2.026,827 1,482,983 LJABILITIES Creditoi's.. amounts falling due within one year 15 (124,769) {26,150) NET CURRENT ASSETS 1,902,058 1,456,833 TOTAL NET ASSETS OR LIABILITIES 5,605,625 4.980,444 Repr¢senling the funds for the Charity: Ullrestricted fuDds'. General fund tksignated funds Restricted fuThds: Scheme of Management compensation 22 21{a,b&cl 2,017,178 3,439,204 1,902,689 2,928,512 20 149,243 149,243 5,605,625 4,980,444 Approv¢d and authorised for issue on behalf of the Council on 13th July 2021 and signed on its behalf by P.._ Raymo Trevor Price Thc note5 on pages 19 to 29 forni part of these fmancial statements. 17
THE HAMP%TEAD GARJ)EN SUBURJJ TRUST LIMITF,D Company number 928520 s'rATEMENT njr CASH FLOWS FOR THF. YF.AR V.NDED 5 APRIL 2021 202012021 20J9n020 Cash flow5 from operating 4ctivitie5 518,818 109,441 Cash flows from investing #ctsvilie5 Rental and other investment income Proteeds from the sale of investments Pur¢hèse of investmeiits 203,206 2,610 (118,305) 239,600 (8000) Net cash provided byl(used) in investing activitles 87,511 231,600 Change im cash Hnd egsh equlvalents in thc rcporthng pcrlod 606,329 341,041 Cash und eash e4uiv8lellts At the beginning of the reportlng period 1,623,682 1.282,641 Cash cash equiv4lents at the end of the reporting period 2,230,011 1,623,682 NOTES TO THE CASH FLOW STATEMENTS 202012021 201912020 Reconelliatioll ofNet income lo Net Cash Flow froin Operating Activities Net income for the reporting period Depreciation charges Gains on investments Renial and othei. investment income Increase in debtors Increasel(decrease) in creditors 709,080 15,001 (78,695) {2n3,206) (21,981) 98,619 409,710 27,103 {51,644) (239,600) {24.354) {11,774) Net cash provided byl{used in) operatEng activities 518,8111 109,441 Analysis of Cash and Cash EqlliY&lents Ca8h at bank and in hand Short t¢rim dcp05)ts 1,367,349 256,333 256,900 2,230,011 1,623,682 The notes on pages 19 to 29 form part of thesc financial ststcineTtts.
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR F.NDED 5 APRIL2021 GENERAL INFORMATiof4 The charity is a company limited by guarantee and is ineotyorated and register¢d in England and Wales. Its regist¢red office and pi"inciple place of business is 862 Finchley Road, London NW I I OAB. The financial statements are presented in St¢rling {£). The objects and principal activity of the charity 15 to Inaintsin and pr¢s¢rv¢ the eharacter and amenities of Hampstead Garden Suburb. ACCOUNTING POLICIW.S The following ¢ire the accounting policie5 adopted by the Trust.. a) Basis of preparation The fin<wcial stateinents are prepar¢d in accordance with Accounting and Reporting by Charitics.. Statement of Recomm¢nded Practice applicable to ¢hariti¢s preparsiig their account5 it) actordance with the Financial R¢porting Standard appli¢able in the UK and Republi¢ of Ircland {FRS 102), the financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective l January 2019) and the Companies ALt 2006. The Hampstead CiaTden Suburb Trust meets the definition of a public benefit entity under FRSI 02.Assets and liabilities are initially recognised at histOTical cost or transaction valuc unl¢ss oth¢rwi5C Statcd in the relevant accounting policy. b) Going concern The trustees consider that thcrc are material uncertainties regarding the charitable Company's ability to continue as a going concern. In making this asses8ment the Trustees havc considered the impact that the outbreak of Covid-19 and the resultant impact on the wideT ¢¢onomy has had on the Charity. c) Fixed assets and depreciation Freehold and long Icasehold e$l8te: This is stated at cosi and is not being depreciated, but the book valJ¢ 1% reduecd on the sale of each freehold and leas¢ ¢xtcnsion. Freehold land and buildin¥'. Freehold land is not being dcpreciated. Depreciation was provided on the frcchold buildiiig al £500 per anThutn froin 6 April 1978 to 5 April 1984. '1'his policy was Changed from that date so th&t no fuither depreciation i5 provided as the pi'operty is Inaintaiiied to a sufficiently high siandard to extend its useful life indefinitely. The book value of the Trust's freehold land gnd building i% ba8¢d on a professional valuation carried out as at 12 December 1968. Until the year ending 5 April 2019, the'l'rust's oflice extension was held at its investment value. In line with thc Charities SORP {fR8 102) from that dat¢ onwards the officc extension is shown at cost (from con)plelion in 2013) of £404,035 less depreciation on a straight linc basis over 50 ycars. The parts of the Trust's office building that are currcntly used residential could be iaken back in to tho Trnst's U.%C 8t 8hoTt notice. The Trust considers that reliably measiii'ing the rclidcntial element in isolation of the r¢81 of the land and building would involve the Trusi in undue cost andlor effort. 0]ce eqiiipment and furniture: Thc charity currently has a capitali.%ation policy. whereby only items over £5,000 will be capitalised and iticluded within the asseÈs of the charity. all costs below this thrcshold are written off in the year of purchase. 'fhe depreciation rate provided on office equipmcnt and fvrnitttre 15 3 y¢8rs so as to write off the Cost of the Olee furniture and equip¢nent over its expected usefvl wi)Tking life. Estate works: The Chai'iry a capitalisation policy whereby appropriate estate works over £5,000 will be capitalised and incliided within the assets of the chaTity, all costs below this threshold are writtcn off in the ycar the works are undertaken. The depreciation rate provided on appiDpri&te estate works is 10 years so a5 to write off the costs over their expected useful life. 19
THE IIAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THE FINANCIAL STA TEMENTS {continued) FOR THE YEAR ENDED S APRIL 2021 d) Income and expenditure All incorning r¢sources and all resources expended are ftccounted for in the period to which they r¢late. Restricted fuiids comprise inonie5 ra15ed for, and their use restricted to, a specific purp05c.' or donation5 subjeel to donor imposed conditiolls (%ee Note 20). Directly attributable expenditure is charged to charitable activities or governante costs as appropriate. Support costs, which are defined a5 ihose costs necessary to deliver an activity but which do not coniribute to ils outy)ut, ar¢ allocatcd on the basis of Estimated staff tiine. Governanc¢ ¢c)sts are those which relate lo the genei?I running of thc charity, rathei. than charitable activity. These inLlude audii fee5, legal advice for trustees and costs associated with constitutional ai)d statutory i'equireiJLents together with ilie appropi'iate allocation of support costs. e) T4xation The charity is considered io pass the tests set oul in Parabiiaph I Schedule 6 ofthe Financ¢ Act 2010 and th¢Tefor¢ i¢ mgets the definition ora charitable cotnpany For UK corporation tax purp(Trses. Accordingly the chai'ity is potentially exempt fiorn taxation in respect of incorne 01 tapital 8ain5 recEived within categories covered by Chapter 3 Part I l of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable tiains Act 1992 to the extent that such incuine or gains are applied exclusively to its chaTltable putP05e5. O Reehargeable F.5t8te Maintenanee The Trust carries out nuinerous r¢chargeabl¢ works to comtnunal areas. This work relates direcily to specific areas for itcm5 yuch as gardening and road works. This is Tharged lo ihtsse owners obligaied to Contribule to the costs of the works. Pensions The Trust ha5 eontributory pension arrdngeinents, which it a¢coutit5 for on an accruals basis. h) InvestentS Investments coinprise short t¢Tm deposits and propety assets. Investment propei1tes &re held at tt'll5tee5' best estiTnate of market value at the balanc¢ sheei date in accordance with the SORP. Any gains or losses on investment a55ets &re shown on the SOFA. No d¢pre¢ialion is charged on investment property. i) Critic&1 accounting jlldgements and estimates In prepai.ingj these aLuounts. InanagemeDt lias Inad¢ Judgctnets, estimates and assumptions that affect the application of the thdllty's accounting policies atid the reported assets, liabilities, incorne and expenditure and ihc di.%closure8 made in the acc(Funls. Estiinates aNd judgein¢i)ts ar¢ coi)tinually evaluated and are based on historical experience and oth¢r factor5, including expectations of future ev¢Dts that are believed to be reasonable under the circumstances. Significant accountillg judgements and estimates includ¢'. Valuation of inves(Inent property (see Iiote Ilh). Allocation of expenditure to the Scheme of Management (see note 2). j) Debtor5 Shori-tern) debtors are ineasuTed at transaciion price, less any impairinenl. Loans receivable are tneasured initially at fair value, net of transaction costs, and are ineasured subsequently al amorlised cost using the ¢ffective inteTes1 ni¢thod, less any impairment. k) Creditor5 Crediiors and provisions are recognised where the charity ha5 a present obligalion resultiiig from a past event that will probably result in the transfer of funds to a third party aiid the MoUnt due to settle tl)e obligation can bc mcasured or estimaled Yelidbly. 20
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTF.S TO THE FINANCIAL STATEMENTS (contlnued) FOR THE YFAR ENDED 5 APRIL 2021 l) Financial in5truN]ents The chariiy only has financial assets and financial liabilities of a kind that qu&lify a5 basic financial in5trutnents. Basic rinanLial instruments. including trade and other debtois and cirditors air inilially rccogni%ed at transaction value and subsequently Ineasured at their settlement value. m) Redundancy and termination costs The charity re¢ognises einployee redundancy and termination costs in full on the date the redundancy or termination is confirimed. 2. SCHEME OF MANAGEMENT The Trust admii)isters a Scheine of Manag¢mcnt under the 1967 Leasehold Reforin Act. This was passed by the High Court 1974 amended in 1983. '1'he purpos¢ of the Schejne is lo preserve and conserve the 14ampstead Garden Suburb and applie5 to all freehold properties enfranchi8ed sincc th¢ Act came into force. Each item of income and ¢xpenditllre is allocated to either the Seheine of Management or the general fund, or wh¢re appi'opriate shared between both. The basi5 on which Trreeholders have tonsequently been eharged with a proportionate part of thc cxpenscs of the Trust in operating the Scheine has been aeed by the auditors. Items of exp¢nditure and income that relate to both the Scheme of Management and the general fund ar¢ apportioncd as follows General overheads are apportioned according to the PTOPOrtion of ¢nfranchised (h.e. freehold) propertie5 to all properties in respect of which the Managein¢J)t Chargc or lease reTht5 are payable to the Trust. Within this calculation flats are weighted against houses in the proportion 1-10. I'he weighting has been detennined by an analysis of staff iiine which showed that on average rnorc than ten times as Inuch time, weighted for 5alAIy, was spent on houses a5 on fldts. This calculation results for 2020n021 in an apportionment of 87%:130kn {201912020 ..130/0) between the Scheme olmanagement and the general fund. Legal costs are allocated or app)rtion¢d on a Case by tase basis, in accordance with legal advice. The apportionment is d¢terEnined according to the balance of significance of the covenants relating to the S¢heine of Manageinent and to tl)e Trust as the owner of the residual estate, balanced by consideration of the overriding reasons for the'l'rust defending or taking th¢ action. Costs for projects and dmenities of benefit to all residents are apportioned according to the proportion of ¥nfranthised (i.e. freehold) properties to all properties in respect of whicl) the Mandgeinent Chai'ge or lease Tents aTe payable io the Trusi, with each propety weighted equally. For 202012021, this r¢sults in an apportiunment of 79Q/a.'21 /0 (201912020 78 /0'.22 /0) between the Scheine of Manageinent and the general fund. The Trust's auditors are satisfied that these apportionments al'e an appropriate basis which to allocate expenditure to the activilies of the Trust and the Scheine of Management. The accuunting systems used by the Trust en5urc that all iteims of income and expendilure aitributable io (he Scheme of Manageinent are separately accouuted for. Given the separate &ccounting records, the tTUStees do not consider that the SLheme of Manageinent would be any Inoir effectively operated with a s¢paral¢ bank account, and the auditQTS COnLur with this decision. A suminary of the resources expeiided by ihe Trust, allocated between the geD¢ral fund atjd the Scheme tsf Manageinent and related to an individual Management Chai'ge, is set out on page 30 by way of additional itjforination as that page do¢s not lorm part of the report & accounts. The net SUTplus of£1 56,63812019120.. net surplus of £72,739) attiibutable to the Scheme will be returned by a balalg credit to each Fi'¢eholder iii accordance with clause 8 {b} (li) olihe Scheme olmanageinent. 21
THf, HAMYSTEAD CARDEN SUBURB TRUST LIMITEID NUTES TO THE FINANCIAL STATEMENTS (eontinued) FOR THE YEAR ENDED 5 APRIL2021 INVESTMBN'f INCOM 2020121121 201912020 Rentsl incoine Bank interest 201,879 1,327 236,028 3,572 203,206 239,600 Allocatcd to.. Trust and estate management (geneiBI fund) 203,206 239,600 203,206 239,600 BUILDINCY APPLICATJOP4 FEES 202on021 201912020 Leasehold Freehold 17,832 132,799 12,210 95,346 150,631 107,556 ANALYSIS OF EXPENDITURE 2020ll021 Dlreet Support Total Costs of Generating Funds Rentavlnvesiment Manageinent Chgfltable gctivities (in¢. Governance eosts) Regulation.. Applications Regulation. Awar¢nesslAdvic¢lEnforcement Maintaining the Fabri¢ of Èhe Suburb Rechargeable Estat¢ Maint¢Jian¢e 54,162 20,321 74,483 154.673 340,545 239,618 65,455 70,210 96,641 56,802 224,883 437.186 296.420 65,455 854,453 243,974 1,098,427 201912020 Direct Support Totgl Costs of Generating Funds Rentalllnvestment Management Charitable activities (illc. Gov¢rn8n¢e costs) Regulation.. Applications Regulation.. AwarenesslAdvi¢elEinforceEnenl Mainiaining the Fabric of the Suburb Rcchargeable Ftstate Maintenance 118,497 23,960 142,457 133,334 216,519 262,378 77.738 64.404 84,919 41,058 197,738 301,438 303,436 77,738 1108,466 214,341 1,022,807 22
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (£onlinued) FOR THE YEAR ENDED S APRIL 2021 DIRECT AND SUPPORT COSTS 202012021 Amenities Legav & Project Profe¥sionfil Custs Costs Staff Costs Support C051s Total 202012021 Costs of Gtneraling FuMd5 Reiitallinvestmeni manageinent Charitable Activities (inc. Governance ¢ost$) Regulation.. Applications Rcgulalion., AwarenesslAdvitdl Enforcement Maintaining the Fabric of the Suburb Rechargeable Estate Maintenance 54,162 20,321 74.483 154,673 70,210 224,883 178,775 96,641 161,770 437,186 105,972 56,802 101,910 65,455 31,736 296,420 65,455 493,582 243,974 167,365 193,506 1,098,427 201912020 Amtnitles & Project Costs LeEaV Profe5sioNal Costs Starr Support Costs Tolol 201912020 Costs of Generating Funds Rentdllinyesiment management Charilable Activities (inc. Governance eosts) Regulacion.. Applications Regulation.. Awar¢nesslAdvic£l Enforcement MaintaininB the Fabric of the Suburb Rechargeable Estate Maini¢n8n¢e 118,497 23,960 142,457 133,334 64,404 197,738 156,266 84.919 60,253 301,438 24.467 41,058 212,424 77.738 25,487 303,436 77,738 432.564 214,341 290.162 85,740 1.022.807 Support costs include £71,464 {2019r2020: £61,028} of inatjagemenl and staff ¢ost5. 23
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YF.AR ENDED 5 APRIL 2021 NET INCOME 202012021 201912020 Net incoming resourc¢s for the year has bccn 5tat¢d aft¢r charging: Depreciation- OtTi¢e tkpreciation- Lstate AuditOTS remuneration Igross}- audit (haysmacintyre) AuditOTS remuneration (gross)- non-audit 8,081 6.920 11,520 2.520 8.080 19,023 9,960 1,896 MANAGEMENT AND STAFF COSTS The average nytnber of fvll and part-time stsff {employees and contractcd staft) during the year was 14 {201912020.. 14) of which 7 {201912020.. 7) were part-time and all of whom were involved in the delivery of the Trust's activits¢s. 'lThe average numb¢r of Full Timc Equivalenl employee5 and contracted staff drIng the year wa5 9.67 (201912020.. 9.478). 202012021 2111912020 Management and staff ¢ost5 during ihe yeAr comprised.. Wages and salaries Employers Nl PensioD Other Inan8g¢ment costs and expenses inetsrred 452,316 41,534 33,031 59,015 373,504 38,921 29,190 51,977 585,896 493,592 For the year ended 5 April 2021 iwo employees Teceived emoluments. in ihe rar)ge £60,000-£70,000 (201912020.. two) and one einployce received emoluments in the range £70,000-£80,000 {201912020.' one). The total employee benefits of the key management personnel of the Trust were £272,743 (201912020.. £220,274) No trustees received rcmuneFation in either this or the previous year. FRFEHOLD AND LONG LEASEHOLD ESTA TF., AT COST 202012021 2019n020 At 5 April 2020 Disposals during the year 44,825 {2.610) 44,825 At 5 April 2021 42,215 44,825 The Trust lia5 an intEre5t in a number of freehold properties. On enfranchis¢rnent of the interest the Trust receives the piDceeds and Tecogni5¢s this amount in full on the face of the SOFA under Oth¢r incoine Iireehold sales. licences & variations Iiet of an allocation o(the original ¢0st. 24
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THF. FINANCIAL STATV.MENTS (ContiVed> FOR THF. YEAR ENDED 5 APRIL 2021 10. FREEHOLD PROPERTY Land BuildimR Tot#1 202012021 Total 201912020 V&luation on 12 December 196¥ At 6 April 2020 aiid 5 April 2021 7,800 27,000 34,800 34,800 Using cost at cofflpletioll of bullding works in 201J Al 6 Apiil 2020 Depreciation charge for the year Disposals 355,546 (8.081) 355,546 (8,081) 363,626 {8,080) Balance at 5 April 2021 347,465 347,465 355,546 Net Book Value At 5 April 2021 Al 6 April 2020 374 465 382 546 382 265 390 346 390 346 398 426 The parts of the Trust'5 offico building that are eurrcnily used as residential could be taken bftck into the Triist's use at Short notice. The frust considcis that reliably me&%uring the residcntiftl element in isolation of the rest of the lartd and building woiild involve the Trust in undue c05t andloi. effort. For th¢s¢ reason$ th¢ his¢oric construction cosi of the extension completed in 2013 is deprcciated in a straight line over 50 years. PROPERTY INVESTMENTS 2020ll021 201912020 Cost At 6 April 2020 Additions Rcvaluatio 2.813,000 118,305 78,695 2,753,357 8,000 51,643 At 5 April 2021 3,010,000 2,813,000 Property investments coinpri5e 9 irsidential flats locllted on HAmpstead Garden Suburb. These investments are let on assllred shorthold tenancies. They are h¢ld for th¢ir renthl income whith matches the Trust's long terin obligations to contribute towards shared costs fyom the Trust's own funds. See note l {g} for the Trust's policy on valuation of investments. 12. ESTATE WORKS 202012021 201912020 Cost At 6 April 2020 Additions during the year 241,511 241.511 At 5 April 2021 241,511 241,511 Depreciatioii At 6 April 2020 Charge for the year 222,404 6,920 203.381 19.023 At 5 April 2021 229,324 222,404 Net Book Value At 5 April 2021 12,187 19.107 At 6 April 2020 19,107 38,130 25
THE FIAMPSTEAD fJARDF,N SUIIURB TRUST LIMITED NOTES TO THE FIP4ANCIAL STATEMENTS (continued) FOR THE YEAR ENDF.D 5 APRIL 2021 13. INVESTMFNTS 202012021 201912020 Cash h¢ld on 5hoil term deposit 256,900 256,333 14. DEBTORS 202012021 201912020 Management income owed to the Trust Bad Debt Provision Other debtors 221,169 (13,000) 2,185 186,499 1,874 Sub Totsl 210.354 188,373 Refund of Managetnent Charge 1156,638) {72,739} 53,716 115,634 IS. CREDITORS.. amollnts falling due Within one ye#r 2020ll021 2019n020 Trade Creditors Accruals and deferred income 62,663 62.106 3,154 22,996 124,769 26,150 16. FREEHOLD SCHEME OF MANAGEMENT 202012021 2019n020 Fund5 brought forward Balance refundable to freehold charge payers Surplus Balancc rcfilndable to freehold chaige payers for 202012021 (156,638) 156,638 (72,739} 72,739 Funds caTTied forward at 051041202 17. INDEMNITY INSURANCE During the year ended 5 April 2021 the Trust paid £5,498 (201912020.. £4.998) in respect of an insurance policy which indemnifies its trustees and offjcers against the consequences of any ncglect or default on their part and protects the Trust from any loss arising from the neglect or dcfaults to its trustees or officers. 18. REMUNF.RATION OF THF TRUSTEES No reinttnerntion is paid to any of the Trust's trustees (201912020.. Nil). No u'ustees were I'eiinbu13ed for expenses {201912020'. Nill. There were no Telated party trdn5a¢tions during the y¢ar (Year to 5 April 2020.. none). 19. MEMBERS LIABILITY Th¢ liability of metnbers is limited by guarantee up lo a maximum of £1 p¢r membei. 26
THE HAMPSTIIAD C.ARDEN SUBURB TRUST LIMITED NOTES TO THE fi INANCIAL STA TFMEI NTS (continued) FOR THE YEAR ENDED S APRIL 2021 20. RE.8TRicfFD FUNDS 202012021 Ayat 06.04.20 Income Expenditure Deficit or (Surplus) belonging tn Seheme of Management Asut 05.04.21 Managernent CharbFe for Scheme of Mandbjement Scheme of ManabFein¢nt compensation 966,125 (809,487) (156,638) 149,243 149,243 149,243 966,125 (809,487) (156,638) 149,243 2111912020 Deficit or (Suiplus) btlonEing to Schcme of Expenditure Management As&t 06.04.19 Asat 05.04.20 Income Management Charge for Scheine of Manageinent Scheine of Management compensatio 734,401 (661,662} (72,739) 149,243 149,243 149,243 734,401 {661,662} (72,739) 149.243 The M2nagciMent Charge for Schemc of Managcrnent fund shows the amount due to enfranchised freeholders after the costs of operating the Scheme of Managcmcnt in the yepr havc been ascertaincd in coit)parison to the estimated Management Charge for the year.-fhe Schcmc of M3nagement coinpcnsation fund relates to the nei ciinount {after legal fees were deducted and returned to the relevant funds) paid to the Trust in scttlcin¢nt for an unauthorised developinent. This fund is restricted by the terms of the Scheine of Managemenl lo b¢ applied in subseqllent yellr& in the manner authorised by the Scheme of Management, which is Inadc for Èhe purpose of ensuring the maintendnce of ihc character and amenitics of Ilainpstead Gardcn Suburb. This fund is held in tru51 for ihc metnber5 of the Scheme of Management. Thc fvnds and any interest accruing is kept in a bank account separate to any otheT funds held by the Trust. Opportunit1¢5 to invest inonic5 from ihe Compcnsation Fund on projects to protect and maintain the ¢h&ract¢r and amenity of the Subuth will be idcntificd during 202112, for delivery in future years as resouirc5 allow. 27
THE HAMPSTF.AD GARDEN SUBURB TRUST LJMITED NOTF.S TO THF, FINANCIAL STATEMF,NT.S (continued) FOK'fHE YF.AR ENI)F.D S APRIL 2021 21 (A). ENDOWMENT DESIGNATED FUND 2020n021 Asat 06.04.20 Asat 05.04.21 Income Expenditure Transfers Cindowment Designed Fund 56.321 692 57,013 20l9ll020 Asat 06.04.19 AsRt 05.04.20 Ineomt Expenditure Tran5fer5 E,ndowm¢nt Designated 53,322 2,999 56,32l The endoWellt dosignated nd contains donation5 to support the Trusvs ability to preserve the aiD¢nities and Character of the Suburb in the long tenn,. for that reason the Tn]st Council has deterinined that not mor¢ than half the fund's rea] growth ill capital and income will be spent in 8ny year. 21 (b). DF.SIGNATED FUND 202012021 A5at 06.04.20 Trlln5fers & gaillsn0s5e5 A5at 05.04.21 lll¢ome Expenditure Designated Fund 2,872,191 510,000 3,382,191 2019n020 As#t 06.04.19 Transfers & gainsllosses A5at 05.04.20 Incom¢ Expenditure Desigllated Fund 2.844,161 28,030 2,872,191 The designated funperty in 2021122. This will further strengthen the Trust's long-tcrm financial seollrity and significantly reducc the year-on-year deficit on its operating account. It is intended that further iiivestinents will be idcntified through 2021122, commensurate with the need to retain adequale funds against future risk and operating contingcncies. 28
THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED NOTES TO THE FINANCIAL STATEMF,NTS (continued) FOR THE YEAR FNDF,D S APRIL 2021 21 (c). DESIGNATED FUNDS TOTAL 202012021 A5at 00.04.20 Asat 05.04.21 Ineome Exppnditur¢ Tr&n5fers Designated Funds Total 2,928,512 692 510,000 3,439,204 201912020 Asat 06.04.19 A5at 05.04.20 Income Expenditure Transfers Designated Fullds Total 2,897,483 2,999 28,030 2,928,512 22. ANALYSIS OF NF.T ASSET8 BY FUND Fund balances at 5 April 2021 General Fund Restricted Funds Designated Funds Total Funds Fixed asscts Cash on short tcrm dcposits Net current as.8ets 115,120 149,243 3,182,304 256,900 3,446,667 256.900 1,902.058 1,902,058 2.017,178 149.24J 3.439,204 5.605.625 Fund balances ai 5 April 2020 CNeneral Fund Restrleted Funds Deslgnated Totol Funds Fixed assets Cash on short term deposits Net current a8sets 445,856 149.243 2,642,179 256,333 3,267,278 256,333 1,456,833 1,456,833 1,902,689 149,243 2,928,512 4,980,444 The short.tenn deposits have inaturities of three months or l¢ss. THE FOLLOWING PAGE INO.301 DOES NOT FORM PART OF THE STATUTORY REPORT & ACCOUNTS 29