Date Amold Hill & Co LLP Craven House 16 Northumberland Avenue London WC2N SAP Dear Sirs King George?5 Field, Mile End During the course of your audit of our financial statements for th¢ p¢riod endin8 31 March 2021, the following representaiions were made to you by the ¢ovn¢illors of London Borougli of Tower Hamlets ("managetnenl") on behalf of Lolldon Borough of Tower HaJnlels, the charity's trust¢¢. We Confirm that the trustee has fulfilled its responsibilities under the Charilies A¢t 2011 for preparing fitiancial statements. in accordance with the applicable financial r¢portiiig framework FRS 102 and for making a¢curdte represeniatioThs to you as auditors. We confimi that in our opinion the financial statements give a true and fair view and in particular thal wh¢re any additional infonnation must be disclosed in order to give a true and fair view that infonnation has in fact been disclosed. We confinn that all accounting records have be¢n made availabl¢ to you for th¢ purpose of your audiL in accordance witli your terms of engag¢m¢nt, and that all tiansactions undertaken by th¢ charity have been properly reflected and rewrded in the a¢¢ounting records. All other records and related ii)formation, including minutes of 811 management meetings. have been made available to you. We have given you unrestricted access to persons witFtin the cliarity in order lo obtain audit eviden¢e and have provided any additional inforniAtion that you have requested for the purposes of your audit. We confirm that significant assumptions used in making accounting eslimal¢s, including those measured at fair value, are reasonable. We confirni that all known actual or possible litigation and claims whos¢ effects should be considered when pr¢p&ring the financial statements have been disclosed io the auditor and accounted for and disclosed in accordance with the applicable financial reporting framework (FRS 102). W¢ confirm that there have been no events sin¢¢ th¢ balance sheet date which require disclosing or whicli would mat¢ri&lly aff¢¢t the amounts in the financial ststemeAts. other than those already disclosed or included in tlie financial statements. We confIrm that all related party relationships and transactions have been accounted for and disclosed and we ar¢ nol aware offurth¢r r¢lated party tnatters that requiie disclosure. We confirm that the charity has had, at no time during the year. any arrangement, trdnsa¢tion or agr¢em¢nt to provide ci¢dit facilities (including advances and credits granted by the company) for the tru5te¢, nor to provide guaraniees of any kind on behalf of the trustee. We confinn that the Ch￿tty has not contracted for any capital expenditure other than as disclos¢d in the financial statements. Except for the breach of charity filing deadlines, we confinn tliat we are not aware of any Possible or actual instance of non-compliance with those laws and regltlalions wliich provide a legal framework within which the charity operates and which are cenlral to the charity's ability to operate. 10. We acknowledge responsibility for the design and impl¢mentation of controls to prevent and detect fraud. We confirm tlut we have disclosed to you the results of our Tisk assessment of the risk of fraud in the charity. We confirni that there have been no actual or suspected instances of fraud Involvin8 management or employees who l)ave a significant role in internal control or that could have a materi81 effe¢t on the financial statements. We a150 confilln that we ate not aware of any allegations of fraud by forn)er ¢mploye¢5. regulators or others. We cunfirni that, having considered ovr expectations and intentions for the n¢xl twelve months and thc availability of working capital, th¢ ¢harity is a going con¢¢m. We eonfirni that in our opinion the ¢ffects of unadjusted misstatements are immaterial, IM)th individually and in aggregate. ¢0 the financial statements as a whole. We confirm that, except for as already prnvided for, all debtors are deemed to b¢ recoverable. We confinn that a donation in the amount of £390.000 was provided to the Charity by London Borough of Tower Hamlets in recognition of lost income during the COVID-19 pandemic. We acknowledg¢ the legal responsibilities regarding disclosuro of information to you as auditors and confirni tliat.. 12. 13. 14. 15. 16. so far a5 management is aware, th¢re is no relevant audit inforniation of which you as auditors are unaW￿e. and manag¢Tnent has taken all the steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish that you are awar¢ of that infomiation. W¢ confinn that the above representations are made on the basis of enquiri¢s of management and staff with relevant knowledge and expertise (and. where appropriate of supportin8 documentation) sufficient to saiisfy ourselves that we can properly Inake these representatiotis to YOU 8nd thal to the be51 of our knowledg¢ and belief they accurately reflect the representations made to you by mana8¢m¢nt during the course of your audit. Yours failhfully Signed on bel)alf of the trust¢e by-. in my capacity as ....................................... . . .. ................ . Agenda Item 4.1 King George's Field Trust Board Meeting 6" July 2022 TOWER HAMLETS Classification: Iunrestricledl Report of: James Thomas, Corporate Director Children and Culture 2020121 End of Year Accounts Approval, King George's Field Trust {KGFT Lead Member Cllr Iqbal Hossain. Cabinet Member for Culture and Recreation Catherine Boyd, Interim Head of Arts Parks and Events All wards Origlnating Officer{s) Wards affected Decision? Reason for Key Decision This report has been ￿vieWed as not meeting the Decision criteria. [Insert date notice was published- see forthcomin decisions web [Slate Priority andlor Outcome from the Strate Plan 2020-23 Forward Plan Notice Published strategic Plan Priority I Outcome Executive Summary This report seeks approval of the audited accounts for 2020121 and the annual report for 2020121. Approval is needed in order for the accounts and report to be submitted to the Charity Commission, a legal duty for organisations with a tumover of more than £1 million. Page 13 Re¢ommendations: The Board is recommended to.. 1. Approve the audited accounts 2020121 for submission to the Charity Commission 2. Approve the annual report for 2020121 for submission to the Charity Commission REASONS FOR THE DECISIONS 1.1 The King George's Field Trusl {KGFTI board is required lo submit audited accounts to the Charity Commission for England and Wales. These are now overdue and require Board approval in order to be submitted. ALTERNATIVE OPTIONS There are no alternatives as KGFT is a registered chafity and bound by the legislation for charities. DETAILS OF THE REPORT 3.1 The accounts for 2020121 have been independenlly audited by Arnold Hill & Co LLP in line with the requirements of the Charity Commission for organisations with a turnover of over £1 million to publish audited accounts. The accounts are accompanied by an annual report, in keeping with the requirements of the Charity Commission for organisations with a turnover of over £1 million. (Appendix 1) The report and accounts relate to the King George's Field, Mile End charity registered number 1077859), which includes Stepney Green and WhiÉehorse Road Open Space. From the accounts attached in Appendix 1, the Board will see that King George's Field Mile End had a revenue surplus for the year amounting £79,000, resulting in a carry-forward cumulative unrestricted revenue reseNe of £77,000. 3.3 The variations in both Ihe SoUr￿S of income and variations in expenditure are analysed in more detail in paragraph 3.5 and of this report. The major ilems of income and expenditure are outlined within the account as follows: Income - the major income items are commercial rents generated from shop lettings at Mile End Park and the hire of the Arts and Ecology Pavilions. Additional income is generated through Stepney Green Astro-turf pitch bookings and a corporate volunteer programme. Page 14 Expenditure- the main expenditure items relate to- (a) Salaries- this covers the cost of the Parks Service staff who manage the facililies and provide activities. (b) Repairs and maintenance - including the cost of all repairs to buildings. trees and fences, and gfounds maintenance costs. 3.5 Income from the KGFT'S main assets was significantly impacted due to the impact of COVID-19 restrictions. The varialions to income are shown in the table below as an average of income achieved in 2018119 and 2019120 against what was achieved in 2020121. Source of income Average Income 2020121 Income Variance Comment Commercial Retail units £520,759 £501,487 £19,272 Variance due to back dated rent in 2019120 for one commercial unit Agreed via leases 50 no change to rental fees Restricted periods of hire due to COVID-19 restrictions and guidance. Reduced income from hire of venues to NHS as COVID- 19 testing and vaccination centres. Unable to operate due to COVID-19 restrictions and uidance Other lettings £83,087 £83,087 £0 Astro-turf pitch bookings and Arts and Ecology Pavilion Hires £331.300 £78,600 £252,700 Corporate volunteer programme £33,600 £0 £33,600 3.6 King George's Field Tredegar Square charity (registered number 1088999} achieved a balanced position. There was £10,000 of expenditure for Repairs and Maintenance related to grounds maintenance. 3.7 To comply with the Charity Commission's requirements, the Board are asked to note and endorse the accounts, and agree their submission to the Charity Commission. Page 15 EQUALITIES IMPLICATIONS 4.1 The King George's Field Trust manage5 lands and facilities which are open to all. Where charges have to be made, such as artificial football pitches, charges are kept at affordable levels for the local community. OTHER STATUTORY IMPLICATIONS 5.1 There are no further statutory implications. COMMENTS OF THE CHIEF FINANCE OFFICER 6.1 As this report is primarily a financial report, all financial details are contained within the Statement of Accounts attached. COMMENTS OF LEGAL SERVICES The London Borough of Tower Hamlets is the corporate trustee of the King George's Field Trust ("Ihe Chariw). Decisions of the Council as twstee are made by the King George Trust Board. When Councillors are sitting as Board members they must acl in the Charity'5 best interests and manage the Charity's resources responsibly and ensure that the Charity complies with its legal obligations. 7.2 The Charity Commission framework for accounting by charities imposes a legal duty on the Charity to submit annual reports, accounts and returns. Linked Reports, Appendlces and Background Documents Linked Report List any linked reports state NONE rf none. Appendices Appendix 1- Audited Accounts and Annual Report 2021 Appendix 2 - Letter of Representation 2021 Background Documents - Local Authorities (Executive Arrangements)(Access to Information)(Englandl Regulations 2012 None Officer contact details for documents: Catherine Boyd, Interim Head of Arts Parks and Events Page 16 I(￿G GEORGE'S FIEU), MItE END Athfite¢{financi￿StAteM£ntS for tAe year en￿&51 JlarcA 2021 Chariry Nllmber.. 1077859 Page 17 KING GEORGYS FIEID, MILE END Colltents Page Reference and Administrative Detatls o£the Chartty, its Ttustee and Ad￿serS Trustee's Report 4- 11 SiaEemeni of Trustee's Responsibilities 12 Audiiors Report 13- 15 Statement of Financial ActiNities. Balance Sheei and Cash Flow Statement 16-20 Notes to the Fin&nci81 Statements Page 18 KING GEORGES FIELD, MI￿ END ADVISERS FOR THE YEAR ENDED 31 MARCH 2021 London Borough of Tower HaEnlets London Borou8h of Tower Hamlets MulbeTry Place 5 Clove Cresceni London E14 2BG Auditors: Arnold Hill & Co LLP Craven House 16 Norihumberland Avenue London WC2N SAP 1077859 Page 19 REPORT OF THE TRUSTEE the Year Ended 31 March 2021 The Irustee presents its repclrt and the financial statements for the year ended 31 Marck 2021. King George's Field. Mile End 1$ a registered charity. It ts referred to throughout this zeport as the "Charitl. or"Kmg George's Field" The King Geoige's Field charity is registered with the Charity Cornmission as King George s Field, Mile End, registered number 1077859. The King George s Field. Mile End charity is governed by a Tn￿r Deed. The King George's Field. Mile End charity is unincotporaied, and the ch&riiable trust is e5t&blished by a Scheme of the Charkry Comrni55ion dated 28th Feb￿ary 20CK). The London Borough of ToweE Hamlets Council lthe "Council") as Tw$¢ee holds the freehold land referred to in this report on behalf of the Chariry. The King GeorEe's Field. Mile End Chariry Board {which sits as a committee) was established by section 3.3.12 of Ihe Council'5 Constitution. which gives it the following ￿nCtIOnS. To administer the affairs of the King George's Field chariry and diSCh￿ge all the duties of the Counal as sole t￿slee ofihe Charity To administer the affairs and th"scharge the duties of trnstee of such other charities conttolled by the Council as the Executive might ?uthorise. The Executive fimction is to di$char8e all nctÉons not Specified as the respon$ibiliry of the hill Council or of any other Com7tLRttee. where the Mayor has delegated his powers to the Cabinet as set out in the Executive Scheme of Delegauon. For Mile End Park and Stepney Green Park annual Management Plans are produced, which are geared to the annual Green Flag campaign, and Iwks at the park fot rhe period January to December. The Parks Service within Tower Hamlets Council was restrnctured into the Art5, Parks and Events Servtce duTiTr8 201212013. Key responsibly for th￿ 5eThTrce res[5 With the Head of Art$, Parks and Events. Mile End Park is managed by the Parks Manager and the day to day runnkng of Mile End Park is delegated to the Park5 Development Officer (Community}: Parks Development Officer (InfrastrnctUTe} and Parks Commurrity Involvement Officer Iyollttg People). The original Trust Deed, andthe $ub5equentvariations, which are referred to below, also dealt with the use of other open space and park areas. within what is now the London Borough of Tower Hamlets. These other area5 are managed by oiher CourLciI employees. 2. Objectives ￿lActiVitieS The Charity'$ objectives 3re set out in the TTUSt Deed. dated 9h November 1965. and a Deed of Variation. date gh Janu8ry 19)7. They ore ￿ follows: Page 20 To preserve in perpetuiry the covenanted land and to apply the land to wch charitable purposes as ate set out in the Recreational Chariiies Act 1958, including the construction of indoor recreational facilities, subsect to the approval of the Nauonal Phying Fields Association and the Charity Commission in respect of any addititsnal purposes. Generally, Lhe Chariry m&intaim the area of Mile End Patk, and the other open spaees within King George's Field, Mkie Ertd, for the recreauon of the general publtc. ittcluding but not limitea to the inh2bitants of the London Borough of Tower Hamlets. The other paTk and tspen space areas are rnanaged to achieve similar objectives. The land is monaged by Tower Hamlets Parks and Open Space5 whose setvice prioElties are as follows.. Strive5 to make all parks and open spaces within Tower Hamlets places where people feel Safe. secure. and that visiting such green spaces Is an enjoyable experience. Recognises the importance of parks and green 5pa¢es as major cornmunity assets. Fully recognises the importance and benefits of park$ and open spaces as places fo¥ recreation. leisure and play for all commurrities wirhin Tower Hamlers. Recognises the impDrtaDce of the Borough's ptttks and open $pace$ and ensures that all of our wide-rangin8 communities and parrners have equal opportunities to use them. Encourages the historical heritage of many of Tower Harnlets parks and open spates and works closely with colleagues and partners alike to protect such cultural assets. Manages and maintain5 the Borough's parks and open Spaces on behalf of the ¢ommunÉtie5 we serve. The key landscape desi8n aims for all Tower Hamlets parks and opell spaces inform any ￿tUre developments in Mile End Park.. Retsin ihe open. green aspect of the park RetaiTh and enhance rhe rnain desire lines but avoid eris5-crossing the park ￿th paths Enhance the public's feelin85 of security Enhance natllre conservation and biodiversiry Enhance and manage boundary and other planting Provide pubh'c art features that increase the vksuol inteiest and identity of the site aJ)d involve the community EKthanee the attractiveness of the park Esiablish a positive site identity that is clear from within and outside the paEk Focus EuTmaE design and ensure that this sight ]ine reJnains open For all time London Borough of Tower Hamlets, as Corpoiate Trustee, i8 aware of the (harity Commissions guidance on Public Benefit and believes this has been followed as outlined below. The Charity has tnait*taEned the ianas within MAle End Park and other King George's Field chariry sires 10 acceptable standard with ongoing improvements implemented listed in the investments section below. The parkn COTktinue to be well usea suppotting as they do a number of key facilities.. Mile End Leisure Centre Stepney Creen aLtificial football pitch Playgrounds Outdoor artivkties centre including BMX track Various water features Areas of biodivezsiry Pavilions with free activity Page 21 Outdoor gym equipment Programme of events and workshops VarA&ty of spo¢es for walks aEkd Informal sports aCtI￿ty Both MRle End and Stepney Green Park retained their Gre¢n Flag status for 2020. No events or workshops were delivered due to Ehe Coronavirus pandemic th8t rnade it unviable for the Chariry to deliver activities to the public. In addition. as a result of the pandemic no volunteering programmes weTe delivered. The An$ 8nd Ecology Pavilions were uulised by the NHS Trust to suppott the response to the pandemic. Installaiion of heritage informaiion panel in Stepney Green Park. Installaiioll of dog exercise equipment within the allocated dog area. The Art5 and Ecology Pavilions hosted a number of free to access days for the pub]ic and conunercial bookings across the year to sllpport communiry engagement and income generation. A summary of the bookings is pro￿ded in Table I, below. Table I: of1M￿ling$ Pavilion (number days) Pavilion (llumber f days) 'bition {iJthding tet up) ed forworks VID-19 Te5tCentre 154 loi i* 05 53 Pavilion high]igbts: 10 blood donor sessions 6 filming day$ 2 wedding ceremonies (maximum o¢cupauon 30 people. in line withCOVID-19 iegulauons and guidance) 3 food distribution days organRsedby a Eocal charirywho used the spaceto co-ordiEkaie collection and distribuuon OF forA to residÈnrs as part of a food bank scheme 3 ÈFkternal meeting events Communirytheatre rehearsal space (delivered in line withCOVID-19 regulations and guidance) Tower Hamlets Sings rehearsals {delivered in line with COVID-19 regulations and guidance) Department of Health and Social Care Test Centte NHS r￿n Vaccine centre Page 22 From April 2020 to March 2021 there were 603 bookings taken for the Astro-turf pitches in Siepney Green. It should be noted that throughoui the year the pitches were clwed for extended periods of time in line with the goverrllnent's COVID-19 regulations and guidance. A new ventilation $y5tem Wd5 installed in both pavilions. Mile EDd Park Fiiends Grouw. Rangers continue to work with and support the Friends of Mile End Park who Drganise events 3Thd act as a ultical friend regarding development of plans and priorities. Otlw COllUDUrrity ettga8eDient scheme Across the park and pavilion5 a Tange of community engagement schemes are supportea including: Volunteer schemes Communkty Garden 5ehemes Tower Hkmlets in Bloom-annual Garden tompetirion Community orrs exhibitions En 2020121 we achieved the following improvements towards biodiversity.. A mixed native hedge in Mile Ena Park. The Council'$ ArbOri￿lt￿re Team. working with the Parks Seryice. planted 11 native trees to extend HaveTfield Wotsdland Walk in Mile End Park a5 part of the Woodland Trn5t' "Big Climate Fightback-. Several blatk poplar trees and an orchard weie planted in Mile End Park. Volunteer planting of 2fJ) metIe$ of mixed whips along Stepway Way and 5(YX) naturalised spring bulbs. In addition Lo the usual repaÈTS and maintenance re8ime monies were invested in the £ollowing'. New venrilatic>n system in the Arts and Ecology Pavilions A new outdoor gym in Mile End Park Re￿rbIShrnertt of the two multi-use games areas in Mile End Park The year's accounts are attached to this annual repc*rt. All income generatedwithin the KingGeotge's Fieldcharity lands go tothe Chariry's accounts to supporc the public access to good quality Sports And leisure faciliues. The Charity gener•te$ incorne to fund the maintenance of the park and irs pro8rarnme of activities. Thi5 incorne is 8enetated rh¥ough.. Rentals of shop/¥e5raurant units plus clirnbing wall centre. These properties are managed by Council's Asset Management team. They have outsourced the managemenL of the shop unirs under ihe Green Bridge. The external company collect rents and service chèrges. reviews leases and find tenants for any vacant lots. Operation of car parking spaces, these being in Havetfield Road and Lawton Road (by Green BFid8el. These are managed by the Council's parking serrices. Page 23 Corporate volunteer scheme5. Managed by the Parks Tearn these provide a useful volunteer work force for mainienance of the park and also income fron) a fee per p&rucip)nt. Hiie of artificial football pitch at Stepney Green. Managed by the Parks Team. The site does generate a small surplus and the majoriry of the teams USkELg the faeiliry are local io Tower Hamlers and the fees are arnongst the che2pest in London. Hire of pavilions for wedding$. private parties and thibitions. Bookings are managed and staffed by parks personnel, including a pool of casual events staff. Facilitie5 Management manage the utility bills, cleaning and maintenance. Commercial activity such 35 fairgrounds and film locations. These are managed by the Council's Festivals and Events team with the iticome comin8 to the Charity. The Charit￿S financial position at the end of 2020121 Shows An small intiea5e irt net assets of £1.146 to £16,(X)9.01912019120.. £16,O)7,873) driven largely by an increase within ourunrestrieted revenue funds of £79,038 and decreases in Endowment Eunds of £77,892. The Charity's endow]]LeTrt fiinds totallÈng £15,931.732 {2019120.. £16,IK)9.624>, include tangible and investment fixed a55ets. Tangible f]xed assets totalling £9,867.21012019no.. £9.919,0351, support rhe public access to good quality sport5 and leisure f&cilities, including Mile End and Stepney Green Park a5 well as the pavilion5 and football pitches on park lands. Investment asset5 rotalling £6.155,8￿(2019/2o.. £6.155,8￿). are held to generate rental income 10 further support the charitable objects of the Chariry. The Charity's unrestricrea fijna totalb'ng a surplus of £77.287120I9120.- £1.751 deficit) comprises the cumulative remaining S￿￿luSe$ ar the year-end. All ren¢al in¢ome arising from investment 3sset$ held in the endowmeni fund is credited directly to this fimd. The unr&%rricted ￿nd is available to use in carryin8 Out the charitable objects of the Chariry. The Charity currently does not have a policy on level of reserves Since the Sole Trustee 1$ the London Borough of Tower H￿lets. which meet$ in fjjll the Charirfs net eKpendi¢ure. so the Chariry'$ fiJndM IS 5ecwed. The Trnst Charity Board rherefore has no¢ set up any financial reserves ro procecr against any unforeseen AuC￿ariOnS in income or expenditure. The UK Government imposed coronavints {Covid-1911(*kdown measures in ETLgland on 26 March 2020 nd subsequently revised and extended them. As a result. many workers wele furloughed and many venues, facilities and amenities were closed. After thÉs lotkdown was lifted, various other restrietion5 were in plote throughout 2020 and a second lockdown was implerneEhted from the 5 November 2020. Thi$ had a decrimental effecttothe Trusts fiThantial position during the 2020121 finaneial yeaT. However, the London Boiough of Tower Hamlets has contributed £35XI,000 of cO￿d relief funding to the Chariry to mitigate against the impacts of co￿a-19 in 2020121 to ensure that at the reporting date and moving forward the Charity would be able to continue as a going concern. The key risks to the Chariry include financial. reputational and P￿b]IC safery risks. The Park managernent tearn, on behalf OF the Charity, acts to create a 5U5tainable income stream to support the maintenance oFthe park and its infr2strneture. The Green Bridge rentJ units provide a $ignifi¢an¢ contyibuuon io the ChaTiry'S income $rr¢am. In relation to this propeity rental income stream we have identified the following risk$-. Non-payment of rentlarrears Page 24 Tenants vacatinglserving Notice Breaehes of leases To mitigate against the above rtsks a competent lettings agent, appointed by the Counckl, manages the tenancy arrangenents for the Green Bridge rental units to ensure best value And good management of tenants. The lettings agent takes a proactive approach LO monitoring rental income aELd take early intervention if there are any issues identthed with a tenant. If required, the Council can undertake debt iecovery action ensuring tent is received and arrears are managed. Historically the rental units have been ￿llY occupied with a low rurnover of teThants. Some of the units have been occupied by the same tenants for over ten years and durin8 the pandemie only one tenant C￿ed to trade, and they easily assigned their lease. showing the resilience of the location. The location is attractive to a wide range of businesse5 due to its proximiry to Mile End tube s¢atRon, a nearby universiry and TesideELtial areas that prO￿de a high level oFFDDtEall. With a large number of the tenants benefitting from Security of Tenure under the Landbrd and Tenant Aet 1954. they would have to serve notice on the knidlord to leave. As a tesult. there will be at least a 3-month nouce period, which will assist in the rnarketing of the unit and would hoPe￿IlY miiigate the risk of a void period and loss of income. In the event of a unit being vac&nt for a perkod of tirne the Chasiry could utilise the c¢)urtcit's Meanwhile Use programme to temporzrily occupy a vacant unit with a'pop-up, shop. thereby maintaini￿8 the vitality of the location. It a150 has the I￿paCt of maiThtaining occttpation, ana therefore mitigates void costs. ?s well a5 the risk of squatter5. Leases are monitored by the letting agent and the Park managemenr ce&m with support from the CountÈl's enforcement and legal tearn5 if Tequired. This approach enables any bTeache5 or compliancy issues to be resolved as quickly 8$ possible. tn addition to rental income. the Charity aho relies on income generated through the veTrue hire oFthe nd Ecology Pavilions. The Park management team piomotes and manage$ b(M)kings for the pavilions, which are now well-es¢ablished venue5 for weddings. private, commercial and COTporate events that generate income. ImprovemeThts include setting up an Instagra7n aCCo￿￿t, which has helped ro increase the number of enquirie5 and bookings. Although there are peak periods for hirers (spring to autiimnl, the Park managemenE team continue to diversity the range of clkents and adapt to changing market considerations. The Park ￿anageMe1}t team operates a comprehensive inspection and repair regirne for the Chariry's land and facilities. In addition, the Chariry reinvests some of rhe income generated through hires to upgrade facilities and equiprnent to ensure its open Spaces and buildings are safe and welco]ning places for the public and commeraal Èenants and venue hirers. In addition, the council's Facilities Management teamunderiake regular preven¢&tive maintenance and su￿tY$. This oveTall approach of maintaining and iELvestiELg reduces the risk of 5Tgnificani buildinglFaciliry failures that could lead ro larger and unplanned for repairs and/or replacernent costs. Page 25 As outlined above, incozne from tenancie5 and hires is utilised to undertake repairs and maintenance of the Charity's a55ets. This approach enables the Charity to ensure Health and Safety legislarion is complied with and that the buildEngs remain in 8 good state of repakr. As the venues are hired out regularly, it is ktnportant both operationally and reP￿tation￿lly that the buildings are well maintained. The PaTks management team implements safe practices for the parks and amenities including regular patrols by Park Rangers with any issues recorded and reported to management. There are operational procedure$ br the zegular inspection and ￿aIntenanCe of play ana gysry equipment by trained park stafF and independent play inspectors. These operating procedures have been developed in line with the relevant guidance and reviewed by dLe Council's Corpctrate Health and Safety team. Additional rnonitoring and Maintenance of the Chariry's park lattds 1$ widertaken by the CtsunciR' Green Team who ensllre thot the l?nd 15 well ETrainta￿lled. The combination of regular Park patro15 and Green Team maintenance helps to ensure that the Charity's land ts well maintained and a safe envRr¢)nment for people to visit. Chazity Namv. The King Geor8e's. Field Mile End Other name the eknirywej: King GeoTge'J Fidds Stepney (Previous name) Re8]Ste￿I cbarlty number. 1077859 London Borough o£Tower Hamlets Mulberry Place 5 Clove Crescent London E142BG Arnold Hill & Co Ltp Craven House 6 Northumberland Avenue London United Kingdorn WC2N SAP The Charity 5 501icitors are the Legal Serviee of the London Borough of Tower Hamlet5. The King George'8 Field awity Boar&. The Board consisted of the Cabinet with the following members for the financial year 2020121 until present. Changes to the Cabinet's composition can be made by the Mayor at any time and any such changes in thi5 petiod were ieflected cOncu￿entlY in the Board's membership. io Page 26 202￿2] topresent Mayor John Biggs Councillor Sirajul Islam CouT&cillor Rachel Blake Councillor Asma Beguro Councillor Amin8 Ali Councillor David Ed8aT Councillor Danny Hassell Councillor Candida Ronatd Councillor Motin Uz-zaman C¢)uncillor Dan Tomlinson Councillor Eve M¢Qyillan Councillor Asrna Islam Councillor Kahar Chowdhury Councillor Mufeedah BustiTh Councillor Sabina Akhtar Prlor to start of period Prior to start of period Prior iD Start of period Prior to start of period Prior to start of perioa Prior to start ofperiod Prior w srart of period Prior to start oFperiod Prior to start of period NA NA NA NA 03106120 03106120 NA NA NA 01109121 01109121 NA 03106120 03m6120 03106120 01109121 03m6120 NA NA Prior to start of pe¥iod NA The Chair of the Kmg George's Field5 Charity Board on behalf of rhe trn5tee {London Bolough of Tower Hamlets).. Date.. /A li Page 27 REPORT OF THE TRUS1EE FOT the Year Ended 31 Mar& 2021 The tnLStee is responsible for preparing the Trnstee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Praciicel. L2w Èpplicable to ch3rities in England and Wale5 require5 the trustee to prepare F￿ancIal statements for each financial year which give a trne and fair view of the incoming resources and applicauon of che resources of the chatity duriTLg the year and of its state of affairs at the end of the year. In preparing these financial statements the trustee is required to.. Select 5Ultable accounting policies and apply them collsi5tently* Observe the method5 and principles the Charities SORP.. lake judgements and esiirnates that are reasonable and prudent., State whether applicable accountÉTkg standards haye been follc>wed, subject to any material departures disclosed explained in the financial st&tements-, aTLd Prepare the financial statement5 on the going concern basis ULdess it is inappropri&te to PT25urne that the charirywill conrinue in operatiotE' The trustee is Tesponsible for keeping proper accounting Tecords whi¢h d￿Close re&sonable ccuracy at any time the flnancial position of the charity and which enable Ihem to eRtsure that the financial 5t3tements cornply with the Charities Act 2011, the Chariry (Accounts and Reports) Regulations 2(K18 and the Charity's cOnsti￿tiOn. They 8re also responsÉble for safeguarding the assets of the chariry and hence for raking reasonable steps for the prevenuon and detection of fraud and other irregulariiies. In line ￿th the reqllirements of the Charity Commis$ion. the trustee appointedAmold Hill & Co LLP Ichartered Accounrantsl as the auditors of the charity. The ch￿"r of the King George s Fid(b' Charity Board on behalfof the trustee (knndon Borough of Tower Hamlets).. Date.. &)yJ 12 Page 28 KING GEORGE'S FIELD. MILE END AUDTfoRS REPORT It) THE MEMBERS OF KING GEORGES FIELD, MIIE END Oplnlon W¢ have audited the finanryal statements of King George's Field, Mile End {the 'charily'l for the year ended 31 March 2021 which compiise the slalement of financial a¢tiwties, the balance sheet and the notes lo the financial slatemenls, including a summary of signEfi¢anl accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United ￿"ngdoM Accounting Standard5, including Financial Reporting Stsndard 102 The Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (United Kingdom Gènérally Accepted Accountin9 Praclicel. In our opinion, the financial statèments,. give a true and fair view of thè state of the charity's affairs as al 31 March 2021 and ol (fs incoming resou￿$ and applicali'on of resouT¢es, fot the year theft ended., hove been property prep8tÈd in accordance with United Kingdom Genera51y Accepted Accounting Placti￿.. and have bèèn preparèd in aeeordance with the requirèments of the Charittes Act 2011. Basis for opinion We conducted our audit in accordance with International St2nd3rds on Auditing IUKI IISAS (UKI) and applicable law. Our fesponsibilitie5 under those standards are further described in the Auditorfs responsibilities for the audit of thè financial statements section ol our report. We are independent ol the d)arity in accordanee with the ethical requirements Ihat are relevant to our audit of the finan¢ial $18temenls in the UK, including the FRC'S Ethical Standard, and w¢ have fulfilled our olher ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In audiling the financial slalements, we have con¢luded that the Iw$tees' u$8 of tha going concern basis of accounting in the preparation of the financial statements Is appropriate. Basèd on the work WÈ havè pèrformed, we have not identifted any material uncertainties relating Its events orcohditlOn8 ihal. Individu8lly tsr colledively. may cast significant doubt on the charily'5 ability to continue as going concern for a period of at least ￿e1Ve months from when Ihe finanual slalemenls afe authorised for issue. Our resporbsibililiBs and the ie5ponsibilities of the Injslees with respect lo going ¢on¢ern are déscrtbed in thè relevant s&¢tions of this report. Other infomiation The other information comprises the information included in the annual report other than the finan¢lal lalemenls and our 8udilo¢s report the￿on. The trustees are iesponsible for the other information contained within the annual report. Our tspirtion on IhÈ financial statements does not cover the other information and we do not express any fom of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other informalioii 15 maleri311y inwnsislenl with tho finanoal statements or our knowledge obtained in Ihe course ol the audit, or otherwise gppears lo be mater¢ally misstated. If we identify such material 1￿COnSIsten¢4es or apparent material misstatements. we are required to determine whether this gives iise to a material mi551atement in the financial statements Ihgmselves. If. based on the work we have performed. we conclude that there is a maleiial misststemenl ol this other information. we are required lo report that fa¢t. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following rnatters In relation lo which the Charitie5 (Accounts and Reports) Regulations 2008 require us to report lo you if. in our opinion.. Ihe inform81i.on given in Ihefinan¢ial statem&nts is inconsistent in any material respectwith the trustees. report., SUff￿eftt a¢eounllno re¢or¢ts have noi bèen kèpt., or 13 Page 29 the financial statemènts are not in Éqreement with the accountino ¥ecords,' or we have not received all the information and explanations we require for our audit. Respon$ibilitie¥ of trustees As explained more fully iri the Statement of TTuslees' Responsibilities, the Iru5tees are responsible for the preparalion of the accounts and for being satisfied Ihat they give a true and lair view, and for such intemal control as the directors delermine is ne¢essary to enable Ihe preparation ol accounts Ihat are free from malerial rnisstatemènt, whethar duè Its fraud or error. In preparing the accoun15. the trustees are responsible for assessing the charity's 8bility loi continue as going concern, disclosing. as applicable. matters related to going concem and using the going concern basis of accounting unless the trustees either intend lo cease operations. or have no realistic altemalive but lo do so. Auditoes te$pon$ibilities for the audit of the financial ¥latemgnts We have been appointed as auditor under section 145 of the Charities Act 2011 and report in #¢¢ordance with the and relevant regulations made or having effect thereunder. Our objectives arè to obtain reasonable assuraneè about whèthèr the financial statements as a whole aré free Irom material tfi5slalemenl. whether due to fraud or ery¢r. and lo Issue an audilorfs ieport that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit cOnd￿ted in a￿rdance wilh ISAS IUKI will always detect a material misstatement when il exi51s. Misstatements can arise from fraud or error and are ctsnsidered malerial if, individually or in the ag9regaÉe. they could reasonably be expected lo influence the economiB ￿e￿510n5 of users taken on the basis ol these financial slalemenls. Irregularities, including fraud, are instarrks of nOn-￿mpli3￿Ce with laws and regulaltons. We design pr¢cÈdures in line with our responsibilities, oullined abtrve, to deteci material misstatements in rèspect of irregularities, including fraud. Tha extènt to which our procedures are capable of detecting irregularities, induding fraud, is detailed belt)W. tection of fraud and breaches of regulations To identify risks of material rnisstatement due to fraud, we considered events o¥ conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to do so. Our approach included.. using analylic81 procedute5 10 identify unusual relationships., reading rninules of Irustee meetings., dis¢ussing ¢harity policies and procedures on Iraud detection and prevention with Iwstees, and enquiiing about any knowledge of actual, alleged or suspected fraud. We ¢orrmunicaled identiffied fraud risks throughout our team and remained alert to any indications ol fraud throughout th8 audit. To identify risks ol malerlal misslalemenl due to non-compl1an￿ with laws and regulations, our approa¢h was a5 follow5.. We identified areas of laws and wulalions that could reasgnably be expected to have a material effect on the financial statements from our general charity experience. and through di￿u$s1o￿ with the Iruslees and other management las requi￿￿ by auditing standards), and di$wssed with the Iruslees and oiher management the policies and procedures regarding compliance with laws and regulations" We considered the legal and regulatory frameworks directly applicable to the financ481 statements reporting framework IFRS 102 and the Charities Acl 20111 and the relevant tax comp1ian¢e regulations: We conSide￿d the nature of the industry. the control environmet)l and charily's performance. 14 Page 30 We communicated identified laws and regulations throughout ourleam and Temain$d alert to any indications of non-compliance throughout the audit. 8ased on thi$ understanding we desig11od our audit PToTrdures lo identify non-compliance with such laws and regulatlDns. Where the risk was considered lo be higher, we performed audit procedures lo address èa¢h identifièd fraud risk. We also performed procedures to address the risk of management override of controls and the risk ol fraudulent revenue recognition. in particular the risks that revenue is recorded in the wrong period and that manayement may be in a position lo make inapprtspriale accounting entries. Our procedures included.. testing rnanu81 journals.. reviewing the financial slaleFnenl disclosures and lesling to supportlll9 do¢um¢nlalion,' perforrning 8n8lylical procedures., and enquiries of tranagement, and were designed to prO￿rte reasonable assurance that the finandal Statements were free frorn fraud or èrror. Owing to the inherent limitation$ of an audit, there is an unavoidable risk that we may not have detected some material misstalements in the financial stalements. even though we have properly planned and performed our audil in accordance with auditin9 Standards. For example, the further removed non- con7plianTr wilh laws and regu181itsns isfrom the events and transactions reflected in the financial statements. the less likely the inherently limited procedures required by auditing slandafds would identify it. The risk is so greater regarding non.deteclion of fraud ialh¢r than error. as fraud rnay involvè intentional concealment, forgery, Coll￿S1on, omission or misrepresenlalion. Our audil Pfocedures are designed lo delect material rnisslalemenl. We aro nol responsible lor preventing non-compliance and cannot be expected lo deled non- compliance with all laws and regulations. A further desuiplion of our responsibilities is available on the Financial Reporting Cguncil's website at.. https.'IlWv￿.trC.0fg.uk/aUdI(orsresp0￿sItsIIilIe5. This description forms part of our 8udilofs report. Other matters Your attention is drawn to the f8¢1 that the oharity has prepared financial statements in accordance wrth 'A¢¢ounling and Reporting by Charities.. Slalernenl of Recommended Practice applicable to charthes prep81ing their accounts in accordance with the FinanGial Ret)orting Standard applicable in th¢ UK and Republic of lieland IFRS 102) las amended) in pre*eren¢è lo the Accounting and Reporting by Charities". Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has b¢en done in order for the financial Statem￿1$ to PrO￿de a true and fair w7ew in accordance with current Generally Accepted Accounting Practice. Use of our report This report is made solety to the Chaiity's trustees. as a body. in ac¢ordan¢& with part 4 01 the Charities (Accounts and Reports) Regulation5 2008. Our audit worf( has been undertaken so that we mighl state to the charity's tru51ees those matters we are reqtjired lo slate lo them in an auditors, report and ft)r no pther purpose. To the fullesl exlenl pertnitteil by law, we do not accept or assume responsibility lo anyone other than the charlty a￿1 the charity'5 Iwslees as a body. for our audit woik, forthis ￿pOrt, or for the opinions we have formed. StsphanÉè Evans IS&nior Statutory Auditor) for and on behalf of Arnold Hill & Co LLP 0310812022 Chartered Accountsnts statutory Auditor Graven House 16 Northumberfand Avenue London United Kingdom WC2N SAP Amold Hill & Co LLP is eligible for appoinlmonl as auditor of King George's Field, Mile End by virtue ol its eligibility for appointment as auditor of a company under of seclion 1212 of the Companies Act 2008. 15 Page 31 K￿G GEORGES FIELD. MItE END srATEMENT OF FINANCIAL AcrtvrriFS FOR THE YEAR ENDED 31 MARCH 2021 Note C￿rrellI yeii Cuuent ye4r CuTreDt y¢aT Unte£tticted Endowment Total Funds Fund$ 2021 Prioi Year Total Fu2xds 2021 2021 2020 Ittcome & Endvwment5 koFQ'. Donatio Charitabk aeuvi 588.809 88,318 24.239 481,487 588,809 88.318 24.239 481.487 203.440 390,095 23.754 520.759 Total illco]ne 1.182.853 1.182.853 1.138.048 Expenditure ori 1.103.815 77,892 1,181,707 1.500.944 Toul expeaaiture 1,103.815 77,892 1,181,707 1,500.944 Nei gairy5 1 {105s£$1 on inve$tsnents 125,3WI Net Surp1￿6/(Der1¢It) foz the year IA-B-CI 79.038 {77.8921 1,146 1388,1961 Net movement in fvnds 79,038 {77.8921 1. 146 1388,196) RÈtotLeiliatioD of ￿nds..- Total ful￿5 btots8ht forward 11,7511 16.009.624 16,007.873 16,396,069 Total hlld8 c*rtiea forward 77,287 15.931.732 16,009.019 16.007.873 The Statement of FinaRcial ActivRiies includes all gains and losses recognised In the ye8r. All &ctkvities are derived from continuin8 operations. 16 Page 32 KtNG GEORGE% FJEtD, MILE END - Analysis ofprior year (2019r20) Prior Year Prxor Year Prior Year UJLTesuieted Endowment Total FuDds Funds Fullds 2020 2020 2020 IMcoJn¢ & Endowments from: DO[￿U0 Charitable aaivi Other trdding acuvtr5 JnvesrTnenrs Other 203.440 39U,095 23.754 520,759 203,440 390,095 23.754 520.759 Total inttsme 1,138,048 l. 138,048 Expenditure o 1.423,052 77,892 1,500,944 Total expettd?tLtre 1.423.052 77,892 1,500,944 Net sai￿ I lknses) on inve5th￿nts (25.31X>} 125.300) Net SurplusllDefieitl for the year (A-B-C) 1285.004) {103.192) 1388.196) Net movement in funds (285,004) {103, I921 (388, 196) Reconciliation 0£ &mdy:. Tot•1 ￿￿a6 brou8bt forward 283,253 16,112.816 16.396.069 Toial earried £orw8¥d (1.7511 16.009.624 16.007,873 The Statement of Financial Activkues includes all gains and losses recognised in the year. All actI￿tieS are derived from continuing operations. KING GEORGE'S FIELD. MELE END - Resouree$ Ipplied in the year ended 31 M*Tch 2021 towards fixed 4$5¢¢5 br Charity use:. 2021 2020 Futxls ga*rated in tk year as in thÈ SOFA Rtsources appbed onkn¥)DalfjkTd assets 1.146 145.9621 1388,1961 129,5681 Net resources aVal￿ble to fund ¢hritable activities 44.816) 417,764 17 Page 33 Movements in revenue and capital funds for the year ended 31 Marcb 2021 Revenue accumu]4ted funds Current year Last year Uwestricted Unrestricted Ftsnds Funds 2021 2020 Accumubred brought forward Recognised gai￿ attd losses befo￿ transfa5 11,7511 283,253 79,038 1285,0041 77.287 (1,751) Closiag unrestrieted ￿tta$ at 31it Mareh 77.287 1.751) Current year Endowment Funds 2021 Last yèar ErÈdowment Funds 2020 FiKed as$et funds At l April TTrrn8fer Ito)lfrom revenue fillJJs 16,(k19.624 177,8921 16,112,816 {103,192} Closing endowment funds at 31st M&rch 15.931.732 16.009,624 Summary of ￿ndS Total Funds 2021 Last YeiT Total Funds 2020 Revenue ?ccumyJa¢ed fiu]ds Fixed asset fLtsJ 77,287 15,931,732 11,751) 16,(M)9,624 Total fitttd8 16.009.019 16.007.873 18 Page 34 KING GEORGE% FIEID. MILE DID FOR THE ENDED 31 MARCH 21Y21 Notes 2021 2020 Fixed assets assets 1nvestsne5￿ held a5 fixed assets 9.867,210 6,155,800 9,919.035 6,155,800 Total r￿ed assets 16.023.010 16.074.835 Curreut o$$ets Debtot5 io 455,573 161.556 Total current assetB 455.573 161,556 Cteditors: amounts f3lling due within one yeat 1469.5641 228,518 Net eurrent assets 113.9911 166.9621 Tbe total net a$$ets of the eharlty 16.007.873 16,009,019 The total llet assets of the charkty Are funded by the r￿LaS of the ehailty. •$ follows:_ Endowmetst funds EndowTrxenr Inve$4nent & Fixed Assei 12 15,931,732 16.009,624 15,931.732 16,(ID9,624 Unrestricted Funds 12 77.287 (1,7511 77,287 11,7511 Tot31 charity funds 16.009.019 16.007,873 The Chair of the King George's Fi Borough ofTower Harnlers): riry Board on behalf of the tNstee (London Date= £10 19 Page 35 KING GEORGE'S FIEID, MILE END FOR THE YEAR ENDED 31 ￿CH 2021 2021 2020 Cash flows from operatin8 activities Net cdsh provided by operdting acllvrtie5 as shown bdow (785.4321 (971,514) C8$h $7ows from inve$¢iDg aetsvitse4 481,487 (45,9621 520,759 chase of PTopery, p]ant equyment (29,568) Net cash provided by inve$ting actÉYitÉes 435,525 491.191 over￿ cash provided by all activtties A+B (349,907} (480,323 Ca$h movemettts Cha￿e in ¢ashand ¢ash equivalents from actsvi in the year ended 31 Match Cash and cash equivaknrs at l Apni (349.907) 120,109} 1480.3231 460,214 Cash at bank aDd in hand less oveTdraft5 at 31 March (370.016) 20.109) Re¢oll¢iliation of Det income to net cash flow from operating activities Net surphjs l (defrit} as slk)wnin the statettw￿ of Financial ACtI%ryt￿s 1.146 (388.196) Adjust￿eNts for :_ Depreciaii)n dwges ProV￿]0n for bad a]y] doubttul debts Net UDrea]iged bs$es on inyesm￿nt assets Dividends, interest ￿1 renrs from investrnet (In¢￿aSe) / Decrease in debtors IrKrease I (Decrease) iti erethtors, exeluding k)aAS 97.787 31,793 87,496 25,300 (520.7591 139.7311 (135.6241 (481.487) (325,810) (108,861} Net cash provided by operating activities (785.432) (971,514) 20 Page 36 KING GEORGES FIELD. MtLE END FOR THE YEAR ENDED 31 MARCH 2021 l. Accounting Polleies Basis of preparation of finattci￿ statements The financial statemenrs have been prepared in accordance wlth the chaYitie5 SORP IFRS 102) Account]ng and Reptrrting by CharÈties. StateTh￿nt of Recommended Practice applicable to charitÉes preparing their accounts accordaftce WAth the Financial Reporting Standard applicable in the LEK and Republic of treland (FRS 102) (eflective I Sanuary 2015), the Financial Reporting Standard applicable in the UK and Republi¢ of Ird8nd (FRS 102 and the Charities Act 2011). The financial 5ratements have been prepared io give 8 true attd fair view and have departed from the Char2ties (Accounts and Reports) Regulations 2008 only to the extent required t() provide a true and fair view. This departure has involved following the Chdrities SORP IFRS 102) published in October 2019 rathEr than the Accounting and Reporting by Charities Staiement of Recommended Practice effective from l April 2(K)5 which has since been withdrawn. King George's Field, Mile Ena rneetthe definition of public benefit entity under FRS I02. Assets and liabiliues are initially reeognised at historical cost or transaction value unless otheEwryse stated kn the relevan¢ a¢countRng policy. The financial statements are prepared in sterling. which is the functional ¢ll￿enCy of the eompany. Monetary amounts in these financial $tatements are rounded to the nearest £. 12 Going Concern The trustee has considered a period of at least 12 ￿OnthS from the date of signing tlwe accounts and detennined that there are no m8terial uncett8inties regardtng the chariry's abiliry 10 continue and to meec irs on-going liabilities for the next 12 months. Therefore, the accounts are prepared on a 80￿8 Concern basis. Income All income is recognised once the Charity has entitlement to the ilkcome, it is probable that the incO￿l& will be received, and the amount of income can be measured reliably. The significant sources of income forthe Trust ielate to, donations received frornthe tA>ndoEk Borough of Towe Hamlets (SOFA - Donations, Note 31. admis510n5 fee5 for events and exhibitions and away days held at the park {SOFA - Charitable actkvities. Note 4) and rental income from retail units owned by the Trnsi (SOFA- Investment iThcome. Note 6}. Expenditure is Tecognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it Rs prDbable that a transfer of economic benefits will be required setilement and the arnount of the obligation can be measured reliably. The charity'5 PTi]ll7Lry 21 Page 37 activity is the m&ititenance of Mlle End Park, and the other open spaees withiTh King Geor8e's Field. Mile End. for the use and enjoyment of the public. All direct and support costs including central staff costs, and depreciation charges are a]]ocated to this prsmary artivity to fvrther the Chari￿$ objective. Land and Buildings assets are subject to the de minim15 for capitalisation of £50.LXX). Renr&l$ pay4ble hom operating leases are charged to the Statemenc of Financial Activirie$ ISOFAI ¢0 reflect the ecojwmic benefits consumed over the lrfe of the le?se. Tangible fixed a&5ets ttnd depretiadon Tan8ible fixed assets {Planr and Machilleryl are initially EecDgnÉsed ai COSL After recognition under the e¢)tt model. tangible r￿ed assets are rneasured ar cost less accumulated depreciation and any aecurnulated impairrnent losses. All costs irLCUEred to bring a rangible fixed asset into its intended working condition should be induded iry the measurement of cosr. Tangible fixed assets (Land and Building) are valued on the basis of Existing Use Value IEUV) and recognised in rhe Balance sheet. Valuatitsn OF IAnd and BuildÉng has bÈen Carried out by qualified RICS valuers {Wilk$. Head & Eve) on a rolling basis. Depreciation is ch￿ged so as to allocate the cost of tangible fixed assets. less their residualvalue, over their useful economie lives on a $tyaight-line basis. Usehl economic lives are assessed on the following basis- Land and B￿lIdIng Plant and Mo¢hinery 26-54 years 5 year$ Investment prtsperties 3S5ets are iniiially recogntsed 8t cost. After recogniuoEk wider cost rnodel, they are Tevalued on a fair value basis at the repDrtÉng date. These asset5 21e revalued annually and not subjected to depreciation. Gains or losses on revaluation are recognised in the Statement of Financial ACti￿tte5 (SOFAI. 1.7 Debto Trade debtors are recogni5ed at the setrlement amount after any trade discount offered. Where debts Enay noi be settled, the balance of debtors is written down and a charge rnade to unrestricted revenue for the income that might not be collecied. I￿ C48h at baJk and In hand The Trust does not hold a bank account ofits own. the London Borough of Tower Hamlets holds cash on behalf of the Trust or the Tnxst owes cash to the London Borough of Tower Hamlets. As pet FRS 102 Seciion I I, the eharity makes use of only ba$2c financial instruments which are initially recogni5ed at transaction value and subsequently rneasured at 5ettIement value. FRnanci31 insrkuments held by the entity comprise debtors, creditors and cash. 22 Page 38 1.10 Iaabllitses Liabilities are recognised when there is an obligation at the Balance Sheet date as a rewlt of a past event. it is probable that a transfer of economic benefii will be required in $ettlement, and the amount of the settlement can be estimated relkably. Liabi]ities are recognised at the arnount that the Chaxity anticipated it will pay to settle Ihe debt or the amount it has received as advanced payments for the goods or Services it must provkde. 2. Fund Accounti UnregtrACted Funds.. General ￿ttd$ are unrestticted funds which are available for use at the di5CFetiotL of the trusiee in fijrtherance oFthe general objectives of the Charity and which have not been designated for orhei purposes. Eaaowmeot Funds: The chariry has peTmanent endowments no ￿Wer to convert the Capital into income. The chanty has pennanent endowments in the form ofinvestments in fixed assets and tangible fixed assets (tand and Building). The incorne generated from these permanent endowments are unrc$ui¢ted and used to fiirther the charity objective. Unrestricted UDTestricted Funds Funds 2021 2020 Donatiorts 588,809 203,440 Total Donatiolls 588.809 20J,440 Ajlineome from doJJ3uonsTelBte ro uarestrjctedfvnds andnoneforendowmenrfiFJJds. 4. Income from Charitsble Aetlviti Iwome from charitable aetkvities - Trading Activities Unre5tric¢ed Unrestticted Fund& Funds 2021 2020 Admi4sionfees 54,020 336,075 Hire of Prernises 88.318 Total Incom¢ frolll charitable ictivities 88.318 390,095 AUiJJcomefrom Charitsbleactivjrjes relare to unrestrictedfvnds kndnoneforendowThent JJd8. 23 Page 39 U]tre8trieted Unrestricted Fujxas Funds 2021 2020 Li¢Ewe Fees 6.800 17.439 6,348 17.406 Car Park I￿ome Ttstal froth other non ch*ritable *etlvfitfie 24,239 23.754 Allineome from othernonbk acuvjuts 241.361 241,36l 222.855 20,958 20.958 17,909 33.978 33.978 25,463 Traveland sulk4￿￿￿. akttible A 19.948 19.948 17.249 pbyee Tehtd exportses 6.IF 6,166 58.344 56.127 Bad aTrl DoubtfidDebts 31.793 31,793 Tokal direct spending 354,384 354,364 397,947 Prenuse¥ EApeuses Rerrt payabk wyler oy4Dng Jeases Rates waier cknge5 89,617 88.324 449.371 47,095 89.617 88.324 449,371 47.095 29.523 46.315 735,632 72.704 Ck3nirg and waste JLinageJkneME 24 Page 40 Adm2ntstratiYe overhe¥ds Tekpb)ne. fax and iNer Postsse SrAtioJw a￿1 pr1rn￿¥ Equ1PnLe￿t oygeKses 4,469 35 5.514 41,11)8 23,46L 23.461 5.277 959 AdVeLtiE￿￿ aThl TDarketr4 Sukctiptiots arKI LKe[￿e$ 959 643 675 352 Pmfe$$wJpalSeTrice$ alld Security Fe Profess*>JMisenYe8 and $ecuTiryfees 17.789 17,789 67.474 19,895 77.892 97,787 87.496 TDtaE IUPPDrt Costs - Curréttt Year 742,431 77.892 820.323 1.094.597 All charitable expenditures in relation to prior year (20191201 w3s Qn unrestricted Sjnds, excepL for the suppott costs for deprecÈÈtion charses1£77.8921. Thi5 is relating to endo￿Trent tangible fixed assets- land and building, which was Tecorded agaI￿t ertdowmerAt funds. Other ExpenditUTe - Governance co8ts Unrestrieted Unrestiicted Funds 2020 2021 Auditor's fees 7,000 8.400 Total Governance costs 7.000 8.400 Totsl Charitablt erpenditylle Unre$trieLed Ettdowment Toial Funds Total Funds F￿￿$ 2021 2021 2021 2020 Tcd diL* sper¥liE Tcrtal supp)tt a)sts TQtalGoverw￿t cosra 354.384 742.431 354,384 820.323 7,000 397.947 1.094,597 8.400 rJ.892 Total ehaTitable t4)ettditUTe 1,103.815 77,892 1,181,707 1.500.944 25 Page 41 Staff cost$ and emoluments SBlaTY costs 2021 2020 Gross Salaries exduding trustses aTrJ key managemem person Employer's National I[￿ur￿e for all staff Employer's conttibutionto defitkd benefit pasion sc￿Me$ 241.361 20.958 33,978 222,855 17,909 25.463 Total salaries, wages and rel&ted costs 296,297 266.227 The average rn￿ber of Staff employed in the was Employees working irL the Mile End Park 8tMI other local parh and openspaces are Loydtsn Boro¥h of Tower Hamlets employees. No employee received more than £50,000 ineither 2020121 or 2019r20. They are eligible to join the Incal Government Pension Scheme adminÉsterea by ￿ tA)ndon Borough of Tower Hamlets. No remuneAtioncosts of key management personnel is ittluded within tbe Tnjst's *eeouDLS. & Tangible Flxed Assets Land and Buildittg$ Plant & M4¢1thry Tvtal Cost At l Apiil 2020 Ad&tio 10.087,51JO 77,589 45,962 10.165,089 45,962 At 31 hlarch 2021 10,087,500 123.551 10.211,051 Depre¢iatign At l ApriL 2020 Charge for the year 233,676 77,892 12,378 19,895 246,054 97.787 At 31 March 2021 311.568 32.273 343,841 Net book value Ai 31 March 2021 9.775.932 91,278 9.867,210 At 31 MarclL 2020 9.853.824 65.211 9.919,035 26 Page 42 Land and Buildings Plant & Machinery Prior Year Total Cost 01 Apnl 2019 Additiorts 10,087,500 48.021 29.568 10, 135,521 29.568 At 31 March 2020 10,087.500 77.589 10,165.089 Deprectation 01 Aprll 2019 Ch#tge for the year 155.784 77,892 2,774 9.604 158,558 87.496 At 31 Mareh 2020 233,676 12,378 246,054 Net book value At 31 March 2020 9.853.824 65,211 9.919.035 At 31 March 2019 9.931.716 45,247 9,976.963 2020121 ITLYestment Propertie$ Total Cost Blfwd Rev3batioJks 6.155,81Jl 6.155.800 Cl￿a 6,155,800 6. 155.800 2019120 Inve$tmeAt Properties Total Cost Blfwd 6.181,100 125,300) 6.181,100 {25.300) C/fivd 6.155,800 6.155,800 The 2020121 Historical cost of investment properties is £6,228,400. Valuation of investment properlies is carried out on an annu&l basis by qualified Royal Institute of Chartered Surveyors IRICS) based on market vplue. 27 Page 43 10. Debto 2021 2020 Trade debtOL5 PrePa}Then￿ afyl accrt￿d income Other debtors Pro￿10￿ for Bad and Doubtfijl Debts 391.073 19,975 76,318 {31.793} 455.573 161,556 161.556 Included in oiher debtors is cash due to the Trnst in relation co rent collected by the rnanaging agent of £76,318 in 2020121. 2021 2020 Trade credito Other creditor5 PAYE, NIC VAT a￿} other tax5 Receipts in advancè 15.651 391.016 8.443 54.454 469.564 14,811 36,909 8.045 168.753 228,518 Included in other creditOTS 15 tash due to the London Borough of Tower Hamlets of £370.016 2020121 and £20,109 in 2019120. 11 Fun& Tepresented by 89*9 ond Jiabi]ities Particulars of how particular funds are represented by a¥sets and liabilitie$ At 31 March 2021 UDrestri¢ted Endowmetyt nds nds Total Fund8 Tangibk Fixed A5ser8 InYestmÈnt in Fixed Assets Current Assets Current Liabknties 91,278 9,775.932 6, 155.800 9.867.210 6,155.800 455,573 {469.5fA) 455,573 (469.5641 77,287 15,931.732 16,009,019 At 31 March 2020 Unrestricted Endowment S]nds Total Funds Tangbi k Fixed Assets Investment Fixed Assets Cvrrent AsseTS Ctsrrenr LiabiitiEs 65,211 9,853,824 6, 155.800 9.919.035 6,155,800 161,556 (228,518) 161,556 (228,5181 (1,751) 16,009.624 16,007,873 28 Page 44 The Trnst leases in ptoperties, the duration on these leases expected to end in 2097. In line with lease tern￿. the rent is required to be re￿eWed on a periodic basi5. Based on the most receni rent review undertaken {between 2013 and 2016), the future n)inimwn lease payments due Under these leases in the furnre year8 are.. Restated 2020 2021 Not iater one year LaEer than one year aNI ￿¢ iater than 5 years Later than 5 years Total 79.898 79.898 319,592 319.592 5.712,707 5.792,605 6.112,197 6.192,095 14. Related Pary Trgnsacuons The London Borough of Tower Hamlets is the t￿￿tee of the King George s Field5 Trust charity. There are substantial material related pary transactions between London Borough of Tower Hamlets (LBTHI and the ¢harity for the year ended 3151 March 2021. Sisnificant related party tran5artioas included council donatiOAS of £588.809 of income in 202￿21 {£203.440 in 2019120) to the Trusr {of which £3SQ,(XYJ {£0 in 2019120} related to a co￿a-19 relief contribuEion), staffing related costs incurred by the Trnst from the Council of £296.297 2020121 (£266,227 itt 2019120) and grounds maintenance costs incurred by the Tnjst ftom the Council of £183,4(K) in 2020121 (£183,420 in 20191201. Cash owed to the London Borollgh of Tower Hamlets in re88rds to a cash overdraft QTL behalf of the Trust &mounted ro £370.Ol6 {2019120 - Cash owed to rhe London Borough of TOW￿ Hamlets irk regards to a cash overdraft on behalf of the Trust amounted to £20.109>. 15. Post Balance SFAeet Event Since the Balance Sheer date of 31" March 2021, there has been no material events thai would neeessitste amendrnents to these accounts. There were no trnstee remuneration, expen5e5, QT Other benefits for the year ended 314 larch 2021 and 31ll March 2020. 17. Contingent laabijity There were no contingent ]iabilities for the year ended 31,, March 2021 and 31rt March 2020. 29 Page 45 This page is intentionally left blank Date Arnold Hill & Co LLP Craven House 16 Northuinberland Avenue London WC2N SAP D¢ar Sirs King George's Field, Mile End During the course of your audit of our financial statements for the period ending 31 March 2021. the following i¢preseTrlations were made lo you by Ili¢ councillors of London Borough of Tower Haml¢is "tnanagement") oli behalf of London Borougji of Tower Halnlets, the ¢haTity's trustee. We confirm that the trustee has fulfilled its responsibilities under the Charities Acr 201 I for preparing financial statements. in accordance with tlie applicable financial reporting framework FRS 102 and for making accurate representations to you as auditors. We confirm that in our opinion the financial statements give a true and fair view and in particular that wher¢ any additional information must be disclosed in order to give a true and fair view information has in fact been disc105ed. We confirm that all accounting records have been Inade available to you for tlie purpos¢ of your audit, in accordance with your leTJns of engagement, and that all transactions undertaken by the Charity have been prop¢Tly reflected and recorded in the accounting records. All otlier record5 and related information, including minutes of all management m¢etings, have been made available to you. We have given vou unrestricted access to persons within the charity in order to obtain audit evidence and have provided any additional inforniation that you have requested for the purposes of your audit. We coiifirm that significant assuinptions used in making accounting estimate& including those measured at fair value, are reasonable. We confirni that all known a¢tual or possible litigation and claims wh￿C effect5 should be considered when preparing th¢ financial statements have been disclosed to tlie auditor and ac¢ouni¢d for and disclosed iii a¢¢ordan¢e with Il)e applicable financial reporting framework (FRS 102). We confjrm tliat there have been no evertis since the balance sheet date which require disclosing or which would materially affect the amounts in th¢ fiDan¢ial stateTnents, other than those already disclosed or included in the financial staternent5. We confiim tliai all related party relationships and transactions have been accounted for aiid disclosed and we are not aware of further related party matters that require disclosure. W¢ confir￿ iliat the charity has had. at no during Ihe year, any arrangement. tfdnsaction or agreement lo provide CTedit fa¢ilities (incltsding advances and credits granted by the company) for the trustee, nor lo provide guaraiitee5 of &iiy kind on belialf of tlie trustee. We confirm that the charity has not contracted for any Capital expenditure other than as disclosed in th¢ financial slatements. Except for the breach of ¢harily filing deadlines, we confirm ihat we are not aware of any possible or actual instance of non-compliance with those law5 and regulations whi¢h provide & legal framework within which the charity operates and which are central to the charity's ability to operate. Page 47 10. We acknowledge responsibility for the design and implementation of contro15 to prevent and detect fraud. We confirm that we l)ave disclosed lo you the iesult5 of our risk assessment of the risk of fraud in lh¢ charity. We confirm that there liave been no actual or suspected InSt￿leeS of fraud involving management or ¢mploy¢¢s who have a signifi¢anl role in tnternal control or that could have a material effect on the financial statements. W¢ also confinm that we are not aware of any allegations of fraud by former employees, regulaiors or others. We confiTm that. having considered our expectations and intentions for the next twelve months and the availability of WOTking capital, the cliariiy is a going concern. We confirm that li? our opinion tlie effects of unadjusted mi55tatements are immaterial, both individually and in aggregate, to the finaiicial statemei)ts as a whole. We confirin that, except for as already provided for, all debtors are deemed to be recoverable. We confirm that a donation in ihe amount of £390,000 was provided to the charity by London Borough of Tower Hamlets in recoEllltion of lost income during the COVID-19 pandeinic. We acknowledge the legal responsibilities regarding disclosure of infornjation io you as auditors and Confirtn that.. 12. ij. 14. 15. 16. so far as management is aware, Ihere is no relevant audit infomiation of which you as auditors are unaware; and management li&s taken all the steps that they ought to have taken to make themselves aware of any r¢levanl audil information and to ¢518blisli that you &r¢ awar¢ of that inforniation. We ¢otifirm Iliat Ihc above representarions are made on the basis of enquiries of management and siaff with relevant knowledge and expertise (and, where appropriate of supporting dwutnenlalion} suffjcient to satisfy ourselves that we ¢an properly make these representations to you altd that lo the best of our kn)owledge and belief they accuratsly Teflect the ￿PresentatIOnS made to you by management during ihe course of your audit. Yours faiihfiilly Signed on behalf of ilie trustee by: in my capacity as ......-.......................................................... Page 48